As Donald Trump prepares to take office on January 20th, the cryptocurrency market is abuzz with anticipation. Bitcoin’s price surge has reached an all-time high of $100,000 (£81,917), and analysts predict a range between $78,000 and $250,000 in 2025. However, this boom also raises concerns about speculation, bubbles, and potential contagion effects on traditional finance.
The Trump administration’s support for cryptocurrency has increased institutional interest, with major players like BlackRock entering the crypto derivatives market. This, in turn, has drawn investors and raised questions about the stability of the market. The recent collapse of Silicon Valley Bank (SVB) serves as a cautionary tale, highlighting the interconnected vulnerabilities between tech, venture capital, and speculative markets.
Critics argue that the increased institutional interest is driven by speculation rather than fundamental value. Social media influencers like Logan Paul have been accused of promoting meme coins without disclosing their financial interests, fueling pump-and-dump schemes. The lack of transparency and accountability in these practices poses a threat to the decentralisation ethos of cryptocurrency, which aims to promote financial freedom.
The SEC’s potential changes under Trump’s administration are also causing concern, as some argue that easing regulations would undermine efforts to address market manipulation and insider trading. Instead, stronger regulations could help protect consumers from financial losses, ensuring that the crypto market operates with transparency and accountability.
As the crypto market becomes increasingly mainstream, it is essential to consider these concerns and ensure that investors are aware of the risks involved. The future success of cryptocurrency depends on striking a balance between promoting innovation and regulating speculation.
Source: https://www.theguardian.com/commentisfree/2025/jan/13/trump-cryptocurrency-mainstream-safer-investors