- Trump built a significant part of his election campaign around the frenzy associated with crypto
- Now the spotlight is on him to turn those promises into action
Another week into 2025 and volatility is already in full swing. Investors are clearly aligning their strategies with Trump’s next steps. While his promises to make the US the “crypto capital” are on the table, it is clear that it is time for these crypto promises to move from paper to reality.
Just like a business deal
Less than ten days before President-elect Trump returns to the White House. No doubt, the Democratic Party’s shortcomings over the past four years paved the way for his second chance.
However, it was his focus on the booming crypto market that really gave him a decisive edge. The outcome? A massive bull run that shattered psychological barriers as billions of dollars flooded into the market.
It is clear that the crypto community firmly supported Trump’s campaign. Now that they have the win in hand, they might want a piece of the action.
First: an executive order to create a strategic Bitcoin reserve, one that is quickly shifting from a bold idea to an economic necessity.
But that’s not all. Trump is also pushing for clearer Bitcoin rules aimed at buyer protection. To make this possible, he has already selected six potential candidates to lead the Commodity Futures Trading Commission (CFTC), following the departure of former chairman Rostin Behnam.
It is clear that Trump is taking bold steps. But with the stakes higher than ever, this isn’t just a plan to revive the crypto market – it’s a race against time.
The clock is ticking
Why the urgency? In the past 24 hours, $89.30 million worth of long BTC positions were liquidated, while the crypto market saw a whopping $380.40 million disappear. BTC’s latest plunge – from $102,000 to $91,000 in less than three days – shows just how wild volatility has become.
Source: Coinglass
What makes it worse? The dip came out of nowhere, without any technical indicators warning investors. Many were overwhelmed and faced enormous losses. Want to reclaim that lost capital? It will be an uphill climb.
All eyes are now on Trump and his promised crypto rules. His escalating feud with the Fed has given investors hope. Perhaps an interest rate cut is on the way.
However, the challenges don’t end there. Trump’s taxes and cuts There is a risk that the government will run out of cash, making it even more difficult to manage the $36 trillion in national revenue debt – of which $7.6 trillion will be rolled out in the coming days.
This could force Trump to reconsider rising borrowing costs, which could send new shockwaves through the crypto market. Clearly, his decisions now extend far beyond crypto. Brace yourself!