As we embrace the first week of 2025, the realm of finance is already witnessing significant fluctuations. Investors are evidently adjusting their tactics in anticipation of President Trump’s forthcoming decisions. While his vows to establish the U.S as the primary hub for digital currencies have been prevalent, the time has come for these commitments to transition from rhetoric to action.
Resembling a Business Transaction
With less than a fortnight remaining until President-elect Trump assumes office once again, it is apparent that the Democratic Party’s failings over the past four years have opened the door for his return.
Yet, it was his emphasis on the flourishing crypto market that truly set him apart. The result? An impressive surge in values that broke through psychological barriers as billions poured into the market.
The backing of the crypto community played a pivotal role in Trump’s campaign. Now, having secured victory, they are likely to seek involvement in this dynamic landscape.
First on the agenda – An executive order to establish a strategic Bitcoin reserve, evolving rapidly from a mere proposal to an economic imperative.
But that’s not all. Trump is also advocating for more transparent Bitcoin regulations centered on safeguarding buyers. To achieve this, he has already identified a shortlist of potential candidates to helm the Commodity Futures Trading Commission (CFTC) post the departure of former Chair Rostin Behnam.
Evidently, Trump is making assertive moves. However, with the stakes at their peak, this is more than just a strategy to revitalize the crypto sector – it’s a race against time.
The Countdown is On
Why the rush? In the past 24 hours alone, $89.30 million in BTC long positions were liquidated, with the crypto market witnessing a staggering $380.40 million evaporate. BTC’s recent nosedive – plummeting from $102k to $91k in under three days – underscores the extreme volatility.
What exacerbates the situation is the sudden plunge without any forewarning from technical indicators, leaving many investors blindsided and grappling with substantial losses. Recovering these lost funds? It’s bound to be an uphill battle.
All attention is now fixed on Trump and his pledged crypto regulations. His escalating dispute with the Fed has spurred hope among investors. There’s a possibility of an impending interest rate reduction.
Nevertheless, the challenges do not stop there. Trump’s proposed tax and spending cuts run the risk of depleting government funds, complicating the management of the $36 trillion national debt – with $7.6 trillion due in the near future.
This might compel Trump to reassess raising borrowing costs, potentially sending fresh shockwaves across the crypto market. Clearly, his present choices have ramifications that extend far beyond the scope of digital currencies. Brace yourselves!