Background and Relevance of Donald Trump’s Crypto Policy
Since former President Donald Trump took office on January 20, the crypto market has seen a significant surge. His policies and stance on cryptocurrencies have played a crucial role in this growth.
Trump’s administration was supportive of the crypto industry, promoting the development of tokens during his campaign. This positive stance, along with Trump’s partial reversal of tariff policies, contributed to the recovery of the crypto market.
Bitcoin’s Rise and Factors Influencing Its Growth
On Wednesday, Bitcoin reached an all-time high of $109,481.83, a 2% increase from the previous day. The total market capitalization of Bitcoin now stands at $2.17 trillion, according to Coinmarketcap data.
Felipe Mendoza, an analyst at ATFX LATAM, highlighted Bitcoin’s resilience and demand in the current context. He attributed Bitcoin’s upward trajectory to the weakness of the US dollar, sell-off in US Treasury bonds, and Moody’s recent downgrade of the United States.
Since early April, when Bitcoin dropped to around $76,000, the cryptocurrency has surged by 40%. This recovery coincides with Trump’s reversal of tariff policies, which boosted investor confidence and led to the revaluation of tech stocks and other assets, including Bitcoin.
Supportive Factors for Bitcoin’s Growth
Jamie Dimon, CEO of JPMorgan, a known crypto skeptic, acknowledged that clients can invest in Bitcoin. This, along with Bitcoin’s inclusion in the S&P 500 by Coinbase, has bolstered investor confidence.
Bipartisan support in the US for regulating “stablecoins”—digital assets considered safer than speculative tokens—has also contributed to Bitcoin’s growth. Democrats have accepted a proposed Republican regulatory framework, further legitimizing the crypto sector.
A favorable macroeconomic environment, with the US returning to international agreements and a 90-day pause in most China-US tariffs, has also improved economic prospects.
Genius Act Propels Bitcoin’s Surge
The Genius Act, a crucial regulatory proposal for stablecoins advancing in the US Senate, has been seen as a clear sign of institutional support and legitimacy for the crypto sector. This has reignited demand for Bitcoin and other digital assets.
Additionally, Trump’s announcement in March to establish a strategic Bitcoin reserve has strengthened the perception of Bitcoin as a strategic and safeguard asset, encouraging institutional and retail purchases.
Bitcoin Among the Market Leaders
With these advancements, Bitcoin is now the fifth most powerful and highly capitalized asset in the market, only surpassed by gold, Microsoft, NVIDIA, and Apple.
Bitcoin’s $2.2 trillion capitalization places it even ahead of Amazon, Alphabet-A (Google), Meta (Facebook), and Tesla. Other cryptocurrencies also gained on Wednesday: Binance increased by 3.17%, Litecoin by 2.28%, Cardano by 2.09%, Dogecoin by 1.47%, Solana by 1.10%, Ripple by 1.10%, and Tether by 0.02%.
Key Questions and Answers
- Q: Who is Donald Trump and why is his crypto policy relevant? A: Donald Trump, former US President (2017-2021), had a supportive stance on cryptocurrencies, promoting their development during his campaign. His policies and partial reversal of tariff policies contributed to the growth of the crypto market.
- Q: What factors have influenced Bitcoin’s recent surge? A: Factors include the weakness of the US dollar, sell-off in US Treasury bonds, Moody’s downgrade of the United States, Jamie Dimon’s acknowledgment of client interest in Bitcoin, and bipartisan support for stablecoin regulation.
- Q: How has the Genius Act impacted Bitcoin’s growth? A: The Genius Act, a crucial regulatory proposal for stablecoins, has been seen as a clear sign of institutional support and legitimacy for the crypto sector, reigniting demand for Bitcoin.
- Q: Where does Bitcoin stand among other market leaders? A: With a $2.2 trillion capitalization, Bitcoin is the fifth most powerful and highly capitalized asset in the market, surpassed only by gold, Microsoft, NVIDIA, and Apple.
