Key Takeaways
- There is much optimism within the crypto industry that the Donald Trump presidency could usher in Bitcoin’s highly anticipated golden era.
- The happening of another Bitcoin rally, creating a US Bitcoin strategic fund, and implementing a more explicit crypto regulatory framework could usher the world into the golden era for Bitcoin faster.
- The appointment of crypto-friendly individuals to various important offices could favor the crypto industry; however, the officials must exercise the delicate balance between ensuring consumer protection, fostering innovation, and maintaining market integrity.
Donald J Trump made history by becoming the second American to win a second, non-consecutive term in office. His triumphant return to the White House has signaled the reemergence of the crypto industry. This article examines whether Trump’s ascendancy to office will spur the golden era for Bitcoin.
A New Dawn for Cryptocurrency Under Trump
After years of struggling to establish themselves in a world where they were associated with crime and fraud and the possibility of not advancing due to the lack of friendly regulation, cryptocurrencies are on the verge of a promising future. Trump’s incoming presidency spurred an enthusiastic market response that saw Bitcoin break through the $100,000 mark for the first time after doubling its price last year. Analysts believe 2025 will usher in the golden era for Bitcoin and other cryptocurrencies.
The entire crypto industry is hopeful that with Donald Trump’s return to the presidency, the price of Bitcoin will exceed the all-time high of $108,000 and push above $250,000 later this year. To make this happen, the crypto industry spent millions of dollars during the 2024 presidential campaigns and is already splurging more millions towards the Trump Inauguration Fund. This shows how much faith crypto industry leaders have put in the Trump administration and its potential to create pro-industry regulations that could spur expansion.
Speaking during the Bitcoin conference Mena 2024 in Abu Dhabi, Eric Trump, son of Donald J Trump, highlighted plans for creating a US crypto advisory council. Should the government follow this plan (Trump has already proposed the creation of the office of crypto czar), there could be a significant change in US crypto policy. With stricter and more precise regulations that mirror the European Union’s MICA, the United States could actualize Trump’s dream of making America the global crypto capital.
To help determine whether the current crypto market enthusiasm could lead to the golden era for Bitcoin, there are at least three things we must watch out for:
Another Bitcoin Surge
Bitcoin’s historic crossing of the $100,000 price tag in December 2024, following increased institutional adoption after Donald Trump’s victory, has set the stage for an even more exciting future. Recent research by CNBC suggests that the king of cryptocurrencies could surge beyond $200,000 in 2025, sparking a wave of optimism and hope within the crypto community.
Among the many reasons for the optimism we are seeing is that Bitcoin has now become more mainstream following the approval, though reluctantly, by the US Securities and Exchange Commission’s (SEC) investment funds in early 2024 that track the price of Bitcoin. Exchange-traded funds (ETFs) have become popular with institutional investors who have poured millions of dollars into them. ETFs offer individual or institutional investors a more straightforward way to trade crypto without buying a single Bitcoin. A good example is the Blackrock spot Bitcoin ETF that amassed over $50 in assets in 2024.
Donald J. Trump’s ascendance into the White House is another reason the crypto community is so enthusiastic. During the 2024 Presidential campaign, he pledged to make the US’ the crypto capital of the planet’ if elected. While this promise has sparked optimism, it’s important to note that the actual impact of Trump’s policies on the crypto industry remains to be seen. Trump seems keen on delivering on this promise, as he has nominated to office policymakers and regulators who are known to be friendlier to crypto interests.
To replace crypto skeptic Gary Gensler, who took many aggressive actions against major crypto industry players, Trump picked former crypto-friendly commissioner Paul Atkins to head the SEC. He also picked prominent venture capitalist David Sacks to become the first-ever crypto and AY czar. Since the Trump administration will be working with a majority Republican Congress that is supportive of the crypto industry, there is every possibility that we could see pro-crypto regulation that could lead to another Bitcoin surge.
The Launch of a Bitcoin Strategic Reserve
Trump made yet another significant promise during the 2024 presidential campaign that could usher the world into the golden era for Bitcoin if fulfilled. He pledged to build a strategic national Bitcoin fund during Nashville’s July 2024 Bitcoin conference. The American government is believed to hold at least 200,000 Bitcoins. Still, if the authorities were to actualize the promise, the US would buy more Bitcoin to make a strategic Bitcoin reserve, meaning the government would actively buy and sell Bitcoin to manage its resources. This would be similar to how the US has a Strategic Petroleum Reserve that is released during energy emergencies.
Sen. Cynthia Lummis already introduced legislation for the creation of such a reserve in 2024, where she proposed that the government buy 200,000 Bitcoins annually for the next five years to end up with a stockpile of 1 million Bitcoins or 5% of the entire Bitcoin supply. Those supporting the reserve idea believe it will bring huge benefits as the government would benefit from the crypto industry’s growth. A Bitcoin Strategic Reserve could provide stability to the market, increase institutional confidence, and potentially lead to a surge in Bitcoin’s value. While it remains to be seen whether the US will launch this fund, such an eventuality will legitimize Bitcoin and the entire cryptocurrency industry and usher in the highly sought Golden era for Bitcoin.
A Promising Environment for Crypto Growth
The transformation of Donald J Trump from a crypto who once called Bitcoin “a scam against the dollar” to a crypto evangelist who wants to make the US the “crypto capital of the planet” was the beginning of his evolving perspective on digital assets. Many crypto industry players expect Trump’s decision to nominate pro-crypto individuals like former commissioner Paul Atkins, who has always held a pro-blockchain and Web3 stance, to chair the SEC to guide the watchdog towards implementing a clear crypto guideline.
While crypto supporters and critics may disagree on what implementing a more transparent digital asset regulatory framework may mean for financial institutions, businesses, and retail investors interested in broadening exposure to cryptocurrencies, Atkins’ previous statements can give us an idea of how he perceives them. It’s important to note that implementing such a framework is not without its challenges. During his tenure as SEC Commissioner, Atkins once said, ‘[The SEC] must not price those very investors out of our markets through burdensome regulations or eat up the fruits of their investments through nonsensical mandates.’
While cryptocurrencies may still be volatile and carry the tag of facilitating illicit trade and speculative trading, there’s every reason to believe that Atkins’ tenure as SEC Chair will gradually bring positive changes as far as crypto regulation is concerned and lead towards a golden era for Bitcoin. Compared to former SEC Chair Gary Gensler, who didn’t spare any efforts to pursue enforcement actions and drag crypto industry players to court, everyone expects to deal with the industry with a lighter touch. However, it must be stated here that Atkins must still adhere to procedural norms and pursue legal justification for every decision he makes. Any shift in the SEC’s position on crypto-related issues must carefully maintain the delicate balance between ensuring consumer protection, fostering innovation, and market integrity.
Conclusion
Regardless of how you look at it, the future of the crypto world is beginning to get brighter, especially when you consider the signs showing that the US could be changing its stance toward the industry. Since the US is an influential player in the Bitcoin game, the world pays attention to the country’s moves. Should everything go as planned and the US government eventually embraces crypto and creates a pleasant environment for digital assets to thrive, that will be a complete game changer for everyone in the crypto space. The expected regulatory shift has already been seen as a significant factor in the strong performance of Bitcoin and all altcoins, besides leading institutions to see Bitcoin as a reliable store of value in case of currency devaluation.
