2025 has kicked off with significant volatility in the markets. Investors are evidently realigning their tactics in anticipation of Trump’s upcoming actions. While his commitments to establish the U.S as the ‘crypto hub’ have been discussed, it’s high time for these crypto assurances to transition from mere words to tangible actions.
Akin to a Business Transaction
We are less than two weeks away from President-elect Trump’s return to the White House. Undoubtedly, the Democratic Party’s missteps over the last four years have opened the door for his re-election.
It was Trump’s special attention to the flourishing crypto sphere that truly set him apart. The consequence? A notable bullish trend that shattered mental barriers as billions flowed into the market.
The crypto community unequivocally supported Trump’s campaign. Now, post his triumph, they might be looking for a share of the pie.
First on the agenda – An executive order to institute a strategic Bitcoin reserve, evolving swiftly from aspiration to economic necessity.
But that’s not all. Trump is also advocating for more transparent Bitcoin regulations focusing on safeguarding buyers. To actualize this, he has already shortlisted several potential candidates to head the Commodity Futures Trading Commission (CFTC) following the exit of former Chair Rostin Behnam.
Evidently, Trump is taking daring steps. However, with the stakes at an all-time high, this isn’t just a scheme to rekindle the crypto market – it’s a race against time.
The Time is Ticking
Why the rush? In the past 24 hours alone, $89.30 million in BTC long positions were liquidated, accompanied by a staggering disappearance of $380.40 million from the crypto market. BTC’s recent drop – from $102k to $91k in under three days – illustrates the extent of the recent volatility.
What exacerbates the situation is the sudden and unpredictable nature of the dip, catching many investors off guard with substantial losses. Recovering that lost capital? It’s going to be an arduous journey.
All eyes are now on Trump and his commitments to crypto regulations. His escalating dispute with the Fed has stirred hope among investors. A potential interest rate cut could be on the horizon.
However, the challenges do not stop there. Trump’s proposed tax and spending reductions run the risk of depleting the government’s coffers further, making it increasingly challenging to manage the colossal $36 trillion national debt, with $7.6 trillion due in the near future.
This might compel Trump to reconsider raising borrowing rates, potentially triggering fresh tremors in the crypto realm. It’s evident that his decisions now have ramifications far beyond the crypto sphere. Buckle up!