Trump Embraces Crypto: What His Policy Flip Means for Bitcoin and Altcoins

Trump Embraces Crypto

Key Insights

• Trump's shift from criticizing Crypto to promoting it has rattled the market development for personal and wider crypto market gains.

• As Trump embraces Crypto, can it propel the market to a $5 trillion valuation?

Trump has shifted from one of the most prominent crypto critics to a crypto champion. During his first administration, Trump was extremely anti-crypto and sought to protect the dollar's dominance.

According to Trump in 2019, Cryptocurrencies, Bitcoin, and other digital assets were a threat to the U.S. dollar. Since then, Trump's stance on Crypto has changed from a critic to a prominent crypto investor and advocate. Now, Trump's embrace of Crypto has turned the market significantly.

Trump's Criticism of Crypto

In July 2019, Trump took to social media to criticise Bitcoin through a series of tweets. On his Twitter account, he argued that,

“I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air"

He emphasised the need for strict regulation of Cryptocurrency following Facebook's plan to launch its Cryptocurrency called Libra. Trump added that

"unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity."

Through his crypto criticism, he attempted to bring Crypto down the drain, arguing that Crypto is not even real money and is never a currency. At the time, Trump's crypto push was to kill it, dismantle and ensure Bitcoin or any other coin doesn't become a significant challenge to the dollar.

Trump Embraces Crypto: A Major Policy Shift.

In 2024, Trump shifted his stance on Cryptocurrency. As Bitcoin rallied to surpass $70k early in 2024, Trump's views on Bitcoin changed, entering Crypto Rush. By mid-year 2024, he had presented his plans to launch World Liberty Financial and, through Trump and his family, started accumulating various crypto assets such as ETH and ENA.

After winning the 2024 election, Trump promised to make the United States the Crypto capital. To realise this dream, Trump's crypto push first became a personal and family affair, building a strong crypto empire. Trump launched the memecoin, the Melania memecoin and the WLF1 stablecoin.

Amid this shift, Trump not only benefited personally but also opened doors for institutions, agencies, and wealthy individuals to venture into Crypto.

The most significant action Trump took against Crypto earlier in his term was firing the SEC chair.

With the entrance of the new SEC Chair, policies drastically shifted, and policy turned pro-crypto. In the first months, Trump's America had turned pro-crypto; this significant policy change has had a massive impact on all significant crypto assets. Additionally, the U.S. Congress passed the Genius Act, as earlier reported by EMCryptohub.

Trump's Crypto Push Impact on XRP

One of the primary beneficiaries of Trump's crypto push is Ripple's XRP. Since the election of Trump in 2024, XRP has rallied from $0.53 to $3.6, marking a 579% rally over the last nine months.

Source: CoinMarketCap

XRP price rebounded, especially after speculation over the SEC cases. For the past years, Ripple and the SEC have faced off over legal clarities. For this, XRP struggled to make any gains as investors feared potential risks or losing all their holdings. Now that the current SEC Crypto, XRP, has experienced an influx of investors, both whales and retail.

Source: Cryptoquant

For example, active addresses peaked at 108k, now averaging at 25k, reflecting growing adoption and increased demand for the asset. With the number of users growing, XRP is now positioned for more gains on its price charts.

What about Ethereum?

Following Trump's election, Ethereum failed to gain traction, despite Trump's World Liberty accumulating ETH in large quantities. Some argue that the ETHableTH was unable to gain the political clout it needed because the ETH founder refused to endorse any political candidate. When everyone rushed to talk to Trump and finance his inauguration, the Ethereum founder refused.

Source: CoinMarketcap

Even so, now things have shifted, and Ethereum is experiencing massive Institutional Demand. Now institutions such as Sharplink, Bitmine, Ether Machine, and World Liberty Financial have accumulated a significant amount of ETH. Amid this increased accumulation, ETH has surged over 70% and is now testing $4k resistance. At the current speed, ETH could rally and reclaim its previous ATH and make another ATH.

Any Impact on Bitcoin?

Undoubtedly, one of the biggest beneficiaries of Trump's crypto push is Bitcoin. After becoming president, Trump signed an executive order establishing Bitcoin's Strategic Reserve. Following the executive order, Traditional finance has opened doors for Cryptocurrency, and now most are investing in Bitcoin.

Source: CoinMarketCap

For that reason, Bitcoin has rallied, making multiple ATHs with the latest ATH around $123k. Yet, analysts are predicting a rally to $150k during this cycle. This shows that the pro-crypto policies have positively impacted Bitcoin's price action.

With the significant crypto rallying, it suggests that Trump's crypto push is working, and if the trend continues, we could see the Crypto market hit $5 trillion in market cap.