Key Takeaways
- US President Donald Trump says cryptocurrencies survive better than other assets during crashes.
- President Trump says he is “very much” in favor of crypto, citing geopolitical rivalry with China.
- The TRUMP token surged over 70% after announcing exclusive dining incentives for its top holders.
US President Donald Trump has reinforced his pro-crypto sentiment, saying crypto is better than other assets in encountering market downturns. He has also warned the US to take a lead in cryptocurrency innovation or fall behind countries like China.
After returning to the White House from Palm Beach, Florida, where he hosted the Spring Gala of the Republican National Committee, Trump said, “I’m a big fan of crypto because I want to keep it away from China.” The pro-crypto US President added:
“Crypto is a whole new thing that started, you know, not so long ago […], but I’m very much in favor of crypto because otherwise China is going to take it over, and just like AI, just like too many other industries, whatever you want to call them, crypto is essential.”
Blame on the Biden Administration
According to Trump, cryptocurrencies were too crucial for the US to ignore, highlighting the sheer scale of their adoption as the driving force behind his pro-crypto sentiment. Trump also apportioned blame to the Biden administration for their initial negative stance on digital assets before softening its stance to gain political mileage.
Asked by reporters whether he stood to gain personally from the gains accrued from the Official Trump token ($TRUMP), the President said he was “not profiting from anything,” adding that he started backing cryptocurrencies before he became President or even during the campaign period. He stated:
“I haven’t even looked […] if I own stock in something, and I do a good job, and the stock market goes up, I guess I’m profiting.”
Growing Scrutiny from Legislators
After revealing that he contributed his entire salary as President to the government and vowed to continue doing the same for the rest of his term, Trump said he had not considered doing the same with his crypto earnings when someone asked whether it was something he could think of. He said:
“Should I contribute all of the real estate I’ve owned for many years if it goes up slightly because I’m President and doing a good job? I don’t think so.”
The US President’s remarks come amid growing scrutiny, especially from Democrats, over Trump and his inner circle’s involvement in crypto ventures that could benefit from his policy decisions. Trump recently unveiled a Bitcoin reserve strategy at the White House Crypto Summit, marking a significant shift in US crypto policy.
Conclusion
While Bitcoin, the flagship cryptocurrency, could have lost its initial gains following Donald Trump’s election victory when it surged over 50% within three months, the US President’s assertion that crypto is better than other assets could further propel the much-anticipated long-term Bitcoin rally that is expected once a crypto regulatory framework takes place. Major financial institutions and banks are already increasingly trusting Bitcoin, with some seeking licensing to deal with crypto. Trump plans to create a cryptocurrency reserve owned by the US government.
Frequently Asked Questions
Do geopolitical events affect crypto?
Political events can be potential market movers. This was demonstrated in 2024, as geopolitical tensions, regulatory shifts, and electoral outcomes sent significant ripples through crypto markets.
What events affect Bitcoin and other cryptocurrencies?
Some events that can positively or negatively impact cryptocurrencies include adoption by companies, investment firms, or governments, economic performance, regulatory actions, world events, accessibility, and network updates.
What is geopolitical risk?
Accordingly, geopolitical risk is associated with wars, terrorist acts, and tensions between states that affect the standard and peaceful course of international relations.
