- Users expected Trump’s policies to boost the crypto industry.
- Early signs are in contrast to crypto users’ expectations.
- Trump’s administration is not hostile to crypto companies.
Many cryptocurrency users anticipated that President Donald Trump’s policies would boost opportunities in the crypto industry. Based on his campaign promises and early actions after taking office, most crypto enthusiasts remained hopeful that the Trump administration could usher in a positive era for digital assets.
Initial Optimism Gives Way to Market Reality
But, the early impact of Trump’s policies tells a different story. For instance, his latest move on international tariffs has only triggered a sharp drop in crypto prices, with some top altcoins losing nearly half their value. Bitcoin, the original cryptocurrency, plunged to $91,530 in the early hours of Monday morning.
Expectedly, the ongoing market volatility and the response to Trump’s actions have sparked debates over a potential link between his trade policies and the crypto downturn. Last week, US Federal Reserve Chair Jerome Powell remarked, “Banks are perfectly able to serve crypto customers as long as they can understand and service the risks.”
Related: President Donald Trump Backs Fed’s Decision to Pause Rate Cuts
It is crucial to note that Powell’s statement marks a notable shift in the government’s sentiment in the current administration, compared to the hostility the crypto industry faced under Joe Biden. It suggests there may be more to the crypto market than the current volatile experience. While Bitcoin and crypto companies lamented over the government’s efforts to “debank” them under Biden, the Fed, under Trump, is advising them on how to navigate the financial industry.
Related: CPI, PPI, and Powell: Key Events That Could Shake Markets This Week
Trump’s approach to crypto reaffirms his campaign promises. He announced plans to create a crypto stockpile and set up a working group to draft new regulations. While it is still early, some analysts see a connection between his aggressive trade policies and his favorable stance on crypto. Given its decentralized nature, cryptocurrency could serve as a safeguard against the liabilities of international trade disputes.
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