A week into 2025, and the crypto market is already seeing significant volatility. Investors are aligning their strategies with the anticipated moves of Donald Trump, who promised to turn the US into the 'crypto capital'.
The Crypto Promise
With less than 10 days until Trump returns to the White House, his focus on the burgeoning crypto market has been a major factor in his election victory. This focus resulted in a massive bull run, breaking psychological barriers and attracting billions into the market. The crypto community backed Trump's campaign and is now expecting to see action, including an executive order to establish a strategic Bitcoin reserve and clearer regulations for buyer protection.
The Urgency
The urgency is due to recent volatility in the crypto market. In just the last 24 hours, $89.30 million in BTC long positions were liquidated. The crypto market saw a staggering $380.40 million vanish. BTC's latest plunge from $102k to $91k in under three days highlights the wild volatility. Investors are now looking to Trump and his promised crypto regulations, especially amid his escalating feud with the Fed. Speculations of an interest rate cut are circulating.
Delivering the Promise
However, Trump's tax and spending cuts risk leaving the government short on cash, making it tougher to manage the $36 trillion national debt. This could force Trump to rethink increasing borrowing costs, which might send fresh shockwaves through the crypto market. His decisions now extend beyond crypto to broader economic implications.
Investors are keenly observing Trump's moves, as his cryptocurrency policies could significantly impact not only the sector but the US economy as a whole. The stakes are high, and everyone is awaiting practical steps towards fulfilling these promises.
