Trump and Bitcoin: A New Landscape for Cryptocurrency Amid Policy Power Plays
In recent years, cryptocurrency has gradually become the focus of the global financial market, and former US President Donald Trump, as the “traffic password” in the political field, also profoundly influences the trend of digital currencies such as Bitcoin. As the 2024 US presidential election approaches, Trump’s attitude towards Bitcoin and potential policy adjustments are attracting widespread attention from investors and industry observers. This article will analyze the deep logic of this hot topic from three dimensions: Trump’s stance on Bitcoin, policy implications, and future trends.
Trump’s Bitcoin stance: from questioning to strategic shift
During Donald Trump’s presidency as the 45th President (2017-2021), he publicly criticized Bitcoin multiple times, calling it “air coin,” and believed that cryptocurrencies could facilitate illegal activities such as money laundering. However, as the cryptocurrency market matured and voter demographics changed, Trump’s stance began to subtly adjust.
During the 2024 election campaign, the Trump team announced for the first time that they would accept political donations in cryptocurrencies such as Bitcoin, calling it an important tool to defend financial freedom. This shift is seen as a strategy to attract support from young voters and tech elites. At the same time, Trump himself has also begun to make a move in the NFT (Non-Fungible Token) field, launching a variety of personal-themed digital collectibles, further bridging the gap with the crypto community.
Bitcoin market reaction under policy game
Trump’s remarks and policy tendencies towards Bitcoin price Had a significant impact. For example, in May 2024, its campaign team announced that they would accept cryptocurrency donations, causing Bitcoin to rise by about 7% on the same day, breaking through the $70,000 mark. Market analysis believes that with Trump’s return to the White House, there may be the following policy changes:
- Relaxing Regulatory Framework: Trump once criticized the current government for ‘over-regulating’ cryptocurrency, hinting at a possible reduction in the SEC’s intervention in the industry and instead supporting more lenient legislation (such as clarifying Bitcoin’s ‘commodity’ nature) to reduce corporate compliance costs.
- Tax policy adjustment: The Republican Party traditionally advocates tax cuts. If Trump promotes a capital gains tax reduction for cryptocurrency transactions, it may stimulate more institutional funds to enter the market.
- Competition in Dollar Digitalization: Trump mentioned in a recent speech that ‘we cannot allow other countries to dominate the future of digital currencies,’ implying that it may accelerate the research and development of the US central bank’s digital currency (CBDC).
In November 2024, after Trump was elected President of the United States, BTC led the cryptocurrency industry to soar. BTC reached a peak of $109,500, ETH reached a peak of $4,100, and various AI Agent tokens and meme coins surged. On the eve of the inauguration of the President of the United States on January 18, 2025, Trump even launched his own official meme coin TRUMP, sparking heated discussions in the cryptocurrency community.
Investor’s Response Strategy
Faced with the dual fluctuations of politics and the market, investors need to pay attention to the following core logic:
- Balance between long-term value and short-term volatility: Bitcoin’s scarcity (21 million coins) and inflation-resistant properties remain the basis for long-term bullishness, but we need to be wary of the risk of selling pressure from the election cycle.
- Geopolitical and regulatory dynamics: Focus on Trump’s attitude and position towards the cryptocurrency industry, especially the progress of stablecoin regulatory bills and national reserves of Bitcoin.
- Diversified allocation: Bitcoin can be used as an asset to hedge against the depreciation risk of fiat currency, but the position ratio should be controlled (recommended not to exceed 5%-10% of the investment portfolio).
BTC Future Outlook
Trump’s interaction with Bitcoin is essentially the collision of traditional political forces and the emerging technological revolution. With the expansion of the cryptocurrency voter base, the digital currency issue has moved from the periphery to the mainstream political agenda. After Trump was elected as the 47th President of the United States, Bitcoin’s status as the ‘digital gold’ will be further consolidated, and the game with policymakers will continue to shape the future pattern of the global financial .
