The cryptocurrency market has experienced relatively large fluctuations recently. Bitcoin once fell below $90,000, hitting its lowest point in the past two months. Then it quickly rose in a V-shaped reversal, driven by positive US inflation data. , rising above $100,000 again. Trump's transfer of power is imminent, and the violent fluctuations also indicate that the market has quietly begun to price the opportunities and risks after he takes office.

The encryption industry has become an important financial contributor to the US election

The second round of Bitcoin price rise is related to Trump’s binding of the MAGA concept to him during the campaign. Trump said that "Bitcoin is a miracle of technology and human achievement, and proposed to give Bitcoin the same reserve currency status as the US dollar, maintain a strategic Bitcoin reserve, and make the United States the capital of cryptocurrency."

Trump demonstrated strong support for the crypto industry during the campaign, which was reflected not only in his public remarks but also in the influx of huge amounts of money. Cryptocurrency industry-related action committees (PACs) and other organizations supporting the industry raised more than $245 million in the 2024 presidential election, accounting for nearly half of corporate donations, according to the U.S. Federal Election Commission (FEC).

In addition, Trump has attracted young voters and technology supporters with cryptocurrency as his core concept. According to statistics, about 20% of adults in the United States hold crypto assets in 2023, and this group of people has shown high support for Trump's campaign. This resonance helped him gain a broader base of voters and allowed the price of Bitcoin to hit record highs during the campaign.

Only those who hold cryptocurrencies will formulate crypto-friendly policies

As the first U.S. president to openly support the crypto industry, Trump’s crypto team has begun to take shape, with 25 cabinet members. There are a lot of crypto-friendly people, and they support cryptocurrencies to varying degrees. Such as the Vice President, Secretary of the Treasury, Secretary of Commerce, Security Advisor, Director of Intelligence, Secretary of Health and Human Services, Secretary of Efficiency, etc., as well as other key positions, such as the White House head of artificial intelligence and cryptocurrency affairs, the new SEC Chairman, etc. are all supported Or people who hold cryptocurrency.

In addition to relevant personnel appointments, Trump not only actively or passively holds crypto assets, but his business territory is also actively involved in the crypto field. From selling NFTs in the early years, to working on the WLIF project now, to applying for the creation of encrypted payment services on social platforms under his name, to acquiring the Bakkt exchange, Trump's involvement in the encryption industry has become deeper and deeper.

As the creator of , only by truly holding cryptocurrency can we formulate a truly crypto-friendly , and better coordinate the relationship with the encryption industry. Trump's personnel and business arrangements in the cryptocurrency field have boosted market confidence, and the market remains optimistic that he will fulfill his campaign slogans after taking office.

What measures will Trump launch after taking office?

Trump officially took office as President of the United States on January 20, a sure sign thatWith the upcoming series of reform measures, especially for the emerging cryptocurrency industry, the market is full of expectations. The following are some prospects for encryption after Trump takes office:

1. A series of friendly executive orders were issued on the first day of taking office

One of Trump’s most anticipated changes is a more friendly encryption regulatory environment. According to the Washington Post, Trump is expected to issue an executive order on the first day of his presidency regarding debanking and repealing the controversial accounting of cryptocurrencies, which would require banks holding digital assets to treat them as for liabilities. It may also include the establishment of a cryptocurrency committee. These upcoming administrative actions are aimed at creating a supportive environment for the cryptocurrency industry.

2. SEC regulations are relaxed and more crypto ETFs are launched

Many of the cabinet members selected by Trump are crypto-friendly representatives, and the new SEC chairman is also a supporter of cryptocurrencies. The market expects that after he takes office, he will review many of the previous chairman's rules and court enforcement actions, and some of the cases may eventually be withdrawn. And it will adopt a softer attitude towards cryptocurrencies and create a more favorable regulatory environment. In addition, it is expected that more crypto ETFs will be launched this year, such as SOL and XRP, which are currently the most popular ones, providing investors with more choices.

3. Clarify regulatory ownership and reduce regulatory restrictions

The Republican Party won a landslide victory in this election and has a majority in both the House of Representatives and the Senate, so it is very likely that legislative barriers will be reduced. high. This pattern may facilitate the rapid passage of bills aimed at clarifying the regulatory framework for digital assets. For example, the 21st Century Financial Innovation and Technology Act.

The bill was proposed in 2023 to establish a regulatory framework for the digital asset market in the United States and provide clear rules for market participants. The current U.S. cryptocurrency regulatory system is relatively confusing. The Internal Revenue Service, Securities Regulatory Commission, and Commodity Futures Trading Commission all have different opinions. As a result, the issue of whether cryptocurrency is classified as a security or a commodity remains unresolved. It is necessary to clarify the framework of powers and responsibilities and clarify the regulatory ownership of the industry. a priority for development. The bill is awaiting consideration and approval by the Senate, a process that could be accelerated by Trump taking office and providing much-needed regulatory clarity for cryptocurrency entrepreneurs.

In addition, Trump’s “America First” strategy should also be reflected in cryptocurrency. For example, it may reduce regulatory restrictions on cryptocurrency transactions, lower market access thresholds, provide tax exemptions or Subsidies will attract technology research and development and talent to flow into the United States, making more cryptocurrencies “Made in the United States.”

4. Bitcoin strategic reserve is slowly advancing

Bitcoin strategic reserve is a topic of great concern to the market, and it is also the most exciting proposal in the encryption market. However, its implementation may face many legal and regulatory challenges. For example, whether the U.S. Treasury Department can increase its reserves by purchasing Bitcoin still needs approval from Congress. At the same time, Federal Reserve Chairman Powell has previously publicly stated that the Federal Reserve has no intention to participate in plans to hoard Bitcoin.

Despite this, Trump may still push forward the Bitcoin reserve plan by signing an executive order, bypassing congressional approval, but this action brings greater administrative risks.

Although the U.S. Bitcoin reserve proposal is controversial, it reflects a bold vision. Currently, five states in the United States have taken the lead and proposed relevant proposals. Overall, the Bitcoin strategy may take longer to be adopted and implemented, but it is expected to be actively promoted in 2025, such as completing research and formulating specific implementation details and other preliminary work.

When the power is transferred next week, there may be a wave of market conditions

January 20, the day of power transfer next Monday, coincides with Martin Luther King Jr. Day. U.S. stocks are not open, and the overflow of market sentiment is more likely to affect the market. to the crypto market. In addition, Trump’s inauguration invited many well-known figures in the encryption industry. If he mentions Bitcoin and cryptocurrencies in his speech, there may be another wave of FOMO in the market.

After the official inauguration, the opening ceremony of the "Trump Market" driven by emotions officially ended. From campaigning to being shot to being elected, the biggest benefits and expectations of the encryption industry have all It is reflected in the price in advance, and the subsequent long-term trend will depend on the actual implementation and market confidence.

Currently, there are some new changes in the macroeconomic environment, and the encryption market is increasingly affected by this. The market is generally worried that Trump's tariffs and immigration will cause inflation to rise. Some institutions even believe that the Federal Reserve may not cut interest rates throughout this year or even rule out raising interest rates, and even the extent of interest rate cuts will be very limited. The obvious correction in U.S. stocks in recent days is also a reflection of the greater uncertainty that the market is facing. After the inauguration ceremony, without more positive news in the short term, the market is likely to show sideways movement, low trading volume and volatility. weakening trend.

Although macroeconomic factors have put pressure on the encryption market, it is certain that Trump’s official inauguration has brought new opportunities to the development of the encryption industry, especially in the regulatory environment, the promotion of technological innovation and The large-scale adoption by institutions is very exciting. Over the next four years, we will witness profound changes in the cryptocurrency ecosystem in the United States and around the world. This is an exciting and challenging time for all those involved in the industry.

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