As the new year begins, many top cryptocurrencies experienced a surge in value due to President Donald Trump’s pro-crypto stance. However, this “Trump bump” was short-lived, with Bitcoin and some other top cryptocurrencies losing significant value.
Despite this brief setback, there are still signs that the Trump administration is committed to supporting the crypto industry. The Securities and Exchange Commission has dropped high-profile cases against crypto companies, signaling a more favorable regulatory approach. Former SEC head Gary Gensler will soon be replaced by Paul Atkins, who is known for his pro-crypto views.
The White House has also created a new position, the AI & Crypto Czar, to ensure innovation continues in the sector. The administration recently hosted its first-ever Crypto Summit at the White House, showcasing its commitment to crypto. Additionally, a U.S. Strategic Bitcoin Reserve and a Digital Assets Stockpile have been established, marking a significant shift in crypto’s status from fringe asset to strategic player.
However, there are still steps that need to be taken, such as creating a comprehensive regulatory framework for crypto. The Trump administration must also support Bitcoin miners and explore new energy policies related to the metal. Furthermore, the Strategic Bitcoin Reserve needs funding, which could come from budget-neutral methods or revaluing gold certificates held by the Federal Reserve.
If there is more to come with the “Trump bump,” Bitcoin is likely to be a major beneficiary. The White House has recognized Bitcoin’s strategic value and will likely take steps to support it. Other winners may include Wall Street cryptos, which are bridging traditional finance and blockchain finance, as well as Layer-1 blockchains like Ethereum and Solana.
Ultimately, the long-term outlook for crypto is promising, with a best-case scenario involving campaign promises turning into executive orders and eventually legislation. For now, investors should adopt a patient approach and be prepared for potential upside if the Trump agenda continues to support the industry.
Source: https://www.fool.com/investing/2025/03/20/has-the-cryptocurrency-market-seen-the-last-of-the