1. Introduction

1.1 Background and Purpose

In the context of the evolving global financial landscape, the cryptocurrency market, as an emerging financial sector, has developed rapidly in recent years, attracting the attention of a large number of investors. Its unique decentralized characteristics, innovative technological architecture, and potential for financial transformation make it an integral part of the financial market that cannot be ignored. At the same time, the attitudes and policy propositions of political figures have profound impacts on the financial market. Donald Trump, as a key figure on the American political stage, is highly focused on for his views and decisions in the economic and financial fields.

Throughout his political career, Trump’s attitude towards the crypto market has undergone a significant change. Initially, he was critical and skeptical of cryptocurrencies, believing their value was unstable and could fuel illegal activities. However, in subsequent political activities, especially during the 2024 presidential campaign, he gained strong support from the crypto industry. His attitude took a 180-degree turn, actively embracing cryptocurrencies and proposing a series of policies to support their development. This shift in attitude has not only attracted widespread attention in the market but also had a substantial impact on the crypto market.

2. The Evolution of Trump’s Relationship with the Crypto Market

2.1 Early Criticism Attitude (2017-2021)

During Trump’s first term (2017-2021), he held a more critical attitude towards the crypto market. In 2019, Trump explicitly stated on Twitter: ‘I’m not a fan of Bitcoin and other cryptocurrencies. They are not money, their value is highly volatile, and they come from thin air. Unregulated crypto assets may facilitate illegal activities, including drug trafficking and other illegal activities.’ In 2021, during an interview with Fox News, he bluntly called Bitcoin a ‘scam,’ believing its value is ‘built on thin air’ and emphasizing that ‘the United States has only one true currency (the US dollar), which is stronger, more reliable, and more trustworthy than ever before.’

Trump’s remarks reflect his concerns about the crypto market mainly in two aspects. On the one hand, the volatile value of cryptocurrencies contrasts sharply with the stability of traditional currencies, which makes him skeptical of the ability of cryptocurrencies to serve as a reliable store of value and medium of exchange. On the other hand, due to the decentralized and anonymous nature of the crypto market, regulation is difficult, making it easy for criminals to use it for illegal activities such as money laundering and financing terrorism, posing a potential threat to financial stability and social security.

Trump’s critical attitude has had a certain negative impact on confidence in the crypto market. After his relevant remarks, the cryptocurrency market experienced varying degrees of price fluctuations. For example, the price of Bitcoin fell in the short term after he tweeted, investors’ confidence in cryptocurrencies was hit, and market sentiment was cautious. Some investors who were originally interested in cryptocurrencies, due to Trump’s negative comments, are cautious about entering the market, leading to a decrease in market capital inflows and a decrease in market activity. At the same time, his remarks have also triggered further attention from regulatory agencies to the cryptocurrency market, prompting regulatory measures to become stricter, which to some extent restricts the development space of the cryptocurrency market.

2.2 Attitude Change (During the 2022-2024 Election Period)

Starting in 2022, Trump’s attitude towards cryptocurrency has undergone a significant shift. During this period, he gradually realized the potential and influence of the crypto market, and began to adjust his stance. He stated that cryptocurrencies like Bitcoin are ‘like the steel industry 100 years ago, still in its infancy,’ believes that ‘Bitcoin may replace gold,’ and declared ‘we will make cryptocurrency one of the greatest industries on earth’.

Behind Trump’s change of attitude, there are various political and economic motivations. Politically, the cryptocurrency industry has rapidly developed in recent years, with a large user base and investor foundation, forming an undeniable political force. Trump may hope to attract the support of this group by supporting cryptocurrency, in order to gain more votes and political capital for his political activities. Especially during the 2024 presidential election, he has gained strong support from the cryptocurrency industry, which further prompted him to actively embrace cryptocurrency to consolidate his alliance with this group.

In terms of the economy, with the continuous growth of the crypto market, its impact on the U.S. economy is becoming increasingly prominent. Trump may see the huge economic potential inherent in the crypto market and hope to promote the development of the cryptocurrency industry to stimulate the growth and innovation of the U.S. economy. In addition, the Trump family and its related businesses have also begun to enter the field of cryptocurrencies, closely linked to the cryptocurrency business. For example, Trump and his wife Melania have launched their own exclusive cryptocurrency, World Liberty Financial (WLF), founded by Trump’s eldest son Donald and second son Eric, positioning itself as a banking platform for cryptocurrencies, encouraging the public to borrow, lend, and invest in cryptocurrencies, and planning to launch a corresponding token, WLFI. These business interests may also prompt Trump to change his attitude towards cryptocurrencies.

2.3 Positive Promotion After Winning (2024 to Present)

After winning the election in 2024, Trump actively promoted the development of the crypto market and took a series of specific measures. On January 23, 2025, he signed an executive order to establish the Presidential Working Group on Digital Asset Markets, which is mainly responsible for assessing the feasibility of establishing a national digital asset reserve and formulating a clear regulatory framework for the crypto industry. This move indicates that the Trump administration has significantly increased its emphasis on the cryptocurrency market, aiming to conduct in-depth research and regulate the market by establishing official institutions to provide policy support and institutional guarantees for its healthy development.

On March 3, 2025, Trump announced on social media the advancement of the cryptocurrency strategic reserve plan, including Bitcoin, Ethereum, Ripple (XRP), Solana (SOL), and Cardano (ADA) in the national reserve framework. The proposal has had a significant impact on the crypto market. After the news broke, the market capitalization of the cryptocurrency market surged by over $300 billion in a single day, with Bitcoin surpassing $95,000, and ADA, XRP, and ETH seeing 24-hour gains of 59.61%, 23.73%, and 9.57%, respectively. This policy signal greatly boosted market confidence, attracting more investors and driving up cryptocurrency prices and market size.

In addition, Trump also plans to attend the first cryptocurrency summit at the White House to further strengthen support for the industry. By hosting the summit, he can bring together experts, business representatives, and government officials in the cryptocurrency industry to discuss the direction of development and regulatory issues in the crypto market, provide references for more reasonable policies, and promote communication and cooperation between the cryptocurrency industry and the government.

3. The Impact of Trump’s Policies on the Crypto Market

3.1 Building a Bitcoin Strong Country Plan

3.1.1 Establish a strategic Bitcoin reserve

Trump’s proposal to establish a strategic Bitcoin reserve plan has had various impacts on the supply and demand of the crypto market and Bitcoin prices. From the perspective of market supply and demand, this plan increases the demand for Bitcoin. As the United States is a major global economic and financial power, the government’s demand for Bitcoin reserves will to some extent alter the supply and demand structure of the Bitcoin market. The government’s large-scale purchasing behavior will reduce the relative amount of Bitcoin available in the market, thus altering the supply and demand balance in the market, leading to a situation of demand exceeding supply. This change in the supply and demand relationship will have a significant impact on market prices.

From the perspective of Bitcoin price, after Trump announced the advancement of the crypto currency strategic reserve plan, the price of Bitcoin surged, breaking through $95,000. This indicates that the market’s response to this policy is very positive, with investors generally believing that the government’s reserve behavior will enhance the value and market position of Bitcoin, thereby increasing investment demand and driving up prices. In the long run, the strategic Bitcoin reserve plan may also enhance the market stability of Bitcoin. The government’s reserve behavior is equivalent to providing a stable support force for the Bitcoin market, reducing significant price fluctuations in the market, making Bitcoin’s position in the financial market more stable. At the same time, this also helps attract more institutional investors to enter the Bitcoin market, further promoting the financialization of Bitcoin and playing a more significant role in the global financial system.

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3.1.2 Building a strong country in Bitcoin mining

Trump’s policy of supporting the Bitcoin mining industry has profound implications for energy use and market structure. In terms of energy use, Bitcoin mining is an energy-intensive industry that requires a large supply of electricity. Trump encourages the development of fuel-based power generation, nuclear power, and other environmentally friendly power generation methods to meet the energy needs of Bitcoin mining. This may lead to adjustments in the energy structure, prompting more energy resources to be directed towards the Bitcoin mining industry. On the one hand, this helps promote the diversification of the energy industry, and promotes the application and innovation of new energy technologies; on the other hand, if energy supply management is poor, it may lead to issues such as energy waste and environmental pollution.

From the perspective of the market structure, Trump’s promise to make the United States an ‘encryption mining power’ will attract more resources and funds into the field of Bitcoin mining, promoting the rapid development of the U.S. Bitcoin mining industry. Domestic Bitcoin mining companies in the United States will receive more policy support and resource input, thereby enhancing their competitiveness in the global Bitcoin mining market. This may change the global Bitcoin mining market structure, increase the proportion of the U.S. in global Bitcoin mining computing power, and create competitive pressure on the Bitcoin mining industry in other countries. In addition, the development of the U.S. Bitcoin mining industry may also drive the development of related industry chains, such as mining machine manufacturing, power supply, technical research and development, forming an industrial agglomeration effect, further consolidating the leading position of the United States in the field of Bitcoin mining.

3.2 Stablecoin Development Policy

3.2.1 Loose policy support

Trump’s support for the development of stablecoins has had a positive impact on the market size and application scenarios of stablecoins. In terms of market size, the loose policy environment has lowered the threshold for the issuance and operation of stablecoins, attracting more enterprises and institutions to enter the stablecoin market. These new entrants bring more funds and innovative ideas, driving the expansion of the stablecoin market. For example, some financial institutions that were originally cautious about stablecoins have begun to actively participate in the issuance and trading of stablecoins under the encouragement of Trump’s policies, leading to a significant increase in the issuance and circulation of stablecoins.

3.2.2 Opposing Central Bank Digital Currency (CBDC)

Trump’s stance against CBDC has had various impacts on the development of the private crypto market. On the one hand, opposing CBDC provides room for the development of the private crypto market. The introduction of central bank digital currency may create competitive pressure on the private crypto market, as CBDCs have advantages such as government credit endorsement and strong stability. Trump’s opposition to CBDC reduces the competitive threat to the private crypto market, allowing private cryptocurrencies to develop in a relatively relaxed competitive environment. This helps promote innovation in private cryptocurrencies, driving continuous development in their technology and applications to meet diverse market demands.

On the other hand, Trump’s opposition to CBDC has also raised concerns in the market about financial regulation and monetary policy. The issuance of central bank digital currencies involves various issues such as monetary policy and financial regulation, and its introduction may have far-reaching implications for the existing financial system. Trump’s opposition has sparked discussions and reflections in the market on the policies related to central bank digital currencies, prompting governments and regulatory agencies to take a more cautious approach to the development of digital currencies and balance the relationship between financial innovation and risk prevention. This is of great significance for the healthy development of the private crypto market, helping to establish a more reasonable and sound regulatory framework and provide security for the long-term stable development of the private crypto market.

3.3 Regulatory Policy Adjustment

3.3.1 Dismissal of SEC Chairman

Trump’s dismissal of the SEC chairman has significantly impacted the regulatory environment and market innovation vitality of the crypto market. In terms of regulation, the SEC plays an important role in crypto regulation, and the replacement of its chairman may lead to major adjustments in regulatory policies. Trump’s dismissal of the SEC chairman, who took a positive attitude towards crypto regulation, may indicate a trend towards a more relaxed regulatory policy. This will change the regulatory atmosphere of the crypto industry and reduce the regulatory pressure faced by companies and investors. Some crypto businesses that were previously restricted due to strict regulation may be released in the new regulatory environment, thereby promoting the development of the crypto market.

From the perspective of market innovation vitality, the relaxation of regulatory policies will stimulate market innovation vitality. The cryptocurrency industry is a field full of innovation, strict regulation may suppress the innovation enthusiasm of enterprises. Trump’s move provides cryptocurrency enterprises with a more relaxed innovation space, encouraging enterprises to innovate in technology, products, and business models. For example, enterprises may increase their investment in blockchain technology research and development, and the launch of new cryptocurrency products, promoting the innovative development of the cryptocurrency market. At the same time, the enhancement of market innovation vitality will also attract more talents and funds into the cryptocurrency industry, further promoting market prosperity.

3.3.2 Establish a unified regulatory framework

Trump’s move to establish a unified regulatory framework is of great significance for the long-term development of the crypto market. From a long-term perspective, a unified regulatory framework will provide clear rules and guidance for the crypto market, reducing market uncertainty. In the absence of a unified regulatory framework, issues such as inconsistent regulatory standards and regulatory arbitrage exist in the crypto market, increasing market risks and investor concerns. The establishment of a unified regulatory framework will clarify the legal status of cryptocurrencies, issuance and trading rules, investor protection measures, etc., enabling market participants to clearly understand their rights and obligations, thereby enhancing market confidence and promoting the long-term stable development of the market.

In addition, a unified regulatory framework also helps improve regulatory efficiency and reduce regulatory costs. Under a decentralized regulatory model, there may be problems such as overlapping responsibilities and coordination difficulties among different regulatory agencies, leading to low regulatory efficiency. A unified regulatory framework will integrate regulatory resources, clarify the division of responsibilities among regulatory agencies, avoid regulatory overlaps and gaps, and enhance the targeting and effectiveness of regulation. At the same time, a unified regulatory framework can also promote international regulatory cooperation, enhance the United States’ discourse power in the global encryption currency regulatory field, help the U.S. cryptocurrency market gain advantages in international competition, and promote the international development of the cryptocurrency market.

4. The Impact of Trump’s Remarks on the Crypto Market

4.1 Market fluctuations caused by general comments

Trump’s general comments on cryptocurrencies have had a significant impact on the crypto market, triggering market fluctuations multiple times. In 2019, Trump publicly expressed doubts about cryptocurrencies on Twitter, saying that cryptocurrencies such as Bitcoin are “not money, their value fluctuates greatly, and they come out of nowhere.” This statement quickly triggered a chain reaction in the market, with the price of Bitcoin experiencing a significant drop in a short period of time, falling from around $9,000 to around $8,500, a drop of over 5%. At the same time, other mainstream cryptocurrencies such as Ethereum and Litecoin also followed suit, causing a significant shrink in the overall market capitalization of the crypto market. Investor confidence was severely hit, market panic spread, and many investors sold off their cryptocurrency assets, leading to a sharp increase in market trading volume.

In 2021, when Trump accepted an interview with Fox News, he once again bluntly stated that Bitcoin is a ‘scam,’ emphasizing that ‘the United States has only one true currency (the US dollar), which is stronger, more reliable, and trustworthy than ever before.’ This statement has once again plunged the crypto market into turmoil, with the price of Bitcoin dropping by about 10% in the 24 hours after the interview aired, falling from around $55,000 to near $49,000. Other cryptocurrencies such as Ethereum and Ripple were not spared, as their prices generally experienced significant declines. The market has generated more concerns about the future development prospects of cryptocurrencies, with investors showing more wait-and-see sentiments, a significant decrease in the influx of new funds, and a substantial overall decrease in activity in the crypto market.

4.2 The Impact of Specific Policy Discourse

4.2.1 The Impact of Tariff Policies on the Crypto Market

Trump’s tariff policy has had multiple impacts on the crypto market, especially in terms of price fluctuations and investor confidence. On February 1, 2025, Trump signed an executive order imposing a 10% tariff on goods imported from China, and a 25% tariff on goods imported from Mexico and Canada. The tariff on Canadian energy products is slightly lower at 10%. The implementation of this tariff policy has triggered strong reactions in the global market, with the cryptocurrency market being hit the hardest.

In terms of price fluctuations, the price of Bitcoin fell by more than 4% after the policy announcement on Monday when the Asian market opened, hitting its lowest point in nearly three weeks, around $96,606. Ethereum also suffered a heavy blow, dropping by about 12%, with prices falling to the level of early November last year. The global cryptocurrency market experienced drastic fluctuations in just 24 hours, with a total of 418,156 people being liquidated, resulting in a total liquidation amount of $1.064 billion. This indicates that the market uncertainty caused by tariff policies has led to a sharp decline in cryptocurrency prices, resulting in significant losses for investors.

From the perspective of investor confidence, Trump’s tariff policy has triggered concerns in the market about a global economic downturn, which quickly spread to the crypto market, undermining investor confidence. Investors are worried that the tariff policy will lead to a global trade war, affecting global economic growth and deteriorating the investment environment in the crypto market. In this situation, many investors choose to reduce their investments in cryptocurrencies, or even sell off their cryptocurrency assets to avoid potential risks. The panic in the market intensifies, causing investors to be cautious about the future prospects of the crypto market, which has a negative impact on the long-term stable development of the crypto market.

4.2.2 Market reaction to remarks on cryptocurrency strategic reserves

Trump’s remarks on the strategic reserve of encrypted currencies have had short-term and long-term impacts on the market. On March 3, 2025, Trump announced on social media the advancement of the strategic reserve plan for encrypted currencies, incorporating Bitcoin, Ethereum, Ripple (XRP), Solana (SOL), and Cardano (ADA) into the national reserve framework. This statement immediately triggered a strong reaction in the cryptocurrency market, and market sentiment quickly turned optimistic.

In the short term, cryptocurrency prices are generally soaring. Bitcoin broke through $95,000, with an intraday increase of nearly 10%; Ethereum rose by over 13%, priced at $2513; ADA saw the highest increase of 72%, while SOL and XRP rose by 24% and 33% respectively. Trump’s personal meme coin TRUMP also rose by 25%. The total amount of cryptocurrency liquidations on exchanges exceeded $800 million, indicating significant market volatility but with the bulls dominating. This suggests that Trump’s remarks greatly boosted market confidence in the short term, attracting a large number of investors into the market and driving the rapid rise in cryptocurrency prices.

In the long run, Trump’s remarks may bring about various changes. On the one hand, it may alter the investment landscape of the crypto market. Including cryptocurrencies in the national strategic reserve could transform the investment attributes of cryptocurrencies from purely financial investment products to assets of strategic importance, potentially attracting more institutional investors and long-term investors into the market and altering the market’s investor structure. On the other hand, these remarks may also prompt other countries to reexamine the status and role of cryptocurrencies, sparking discussions and explorations on a global scale about the strategic reserve of cryptocurrencies, thereby profoundly impacting the development of the global crypto market. However, due to the many doubts still existing in the market regarding the details and implementation of this policy, as well as macroeconomic concerns arising from Trump’s tariff policy, investor sentiment may fluctuate, and cryptocurrency prices may face certain downward pressure.

5. the Trump family and the crypto market

5.1 Trump family’s encryption investments and projects

Members of the Trump family’s investments and participation in the crypto market have had a significant demonstration effect on the market. Trump himself launched his personal meme coin TRUMP coin ($TRUMP) on January 18, 2025. After the coin was listed, the price soared, with the highest increase exceeding 20000%. This event has drawn attention to celebrity crypto projects in the market, attracting many investors influenced by Trump to participate in the trading of TRUMP coin, leading to a rapid surge in the coin’s market value in the short term, reaching billions of dollars at one point.

Trump’s sons are also actively involved in the encryption field. Donald Jr. and his second son Eric founded World Liberty Financial (WLF), positioned as a banking platform for cryptocurrencies, encouraging the public to borrow, lend, and invest in cryptocurrencies, and planning to launch the accompanying token WLFI. On the evening of September 16, 2024, Trump revealed the establishment of WLF on the social media platform X, expressing his optimism towards cryptocurrencies. The establishment of WLF has attracted a lot of attention from the media and investors. Many believe that the involvement of the Trump family has given the project a higher level of visibility and credibility, giving WLF a certain competitive advantage in the market. Some investors who were originally cautious about cryptocurrency banking platforms have begun to pay attention to WLF and consider participating in its business due to the involvement of the Trump family.

In addition, Melania, Trump’s wife, has also launched her own meme coin, which surged by 12,000% within 24 hours of its launch. The series of actions by the Trump family members in the crypto market has attracted the attention of many investors. Many believe that the Trump family’s involvement signifies significant investment potential in the crypto market, prompting many to follow suit in investing. This demonstration effect has to some extent driven the inflow of funds into the crypto market, increasing market activity. However, some investors also express concerns about the motives of the Trump family’s involvement in crypto projects and the sustainability of the projects, fearing that it may be merely a short-term speculative behavior with significant investment risks.

5.2 $TRUMP Market Performance and Impact of Meme Coins

5.2.1 Issuance and Price Trends

$TRUMP meme coin was launched by the US president-elect Trump on the morning of January 18, 2025, local time on social media. The coin is issued based on the Solana blockchain with a total supply of 1 billion coins, of which 80% of the tokens are jointly held by two of Trump’s companies - CIC Digital LLC and Fight Fight Fight LLC. This portion of tokens will be gradually unlocked over three years, with an initial 200 million tokens available for trading.

After the launch of the TRUMP meme coin, the price trend was extremely volatile. The opening price was $0.1824 and in less than 90 seconds, it soared to $38.33, an increase of over 20,000%. Subsequently, although the price fluctuated, it generally remained at a high level in the early stages. The main reasons for its price fluctuations are as follows.

First, there is the driving force of the celebrity effect. Trump, as a globally renowned political figure, has a huge fan base and supporter group. The news of his personal meme coin has attracted widespread attention, and many supporters, out of their support and trust in him, have been buying TRUMP meme coins, driving up the price.

Second, the market has a strong speculative atmosphere. Memecoins themselves are highly speculative, lacking actual economic value support. Their prices are mainly influenced by market sentiment and speculation. After the launch of TRUMP memecoin, speculators flocked into the market, further intensifying price fluctuations through large buying and selling.

Thirdly, the impact of market supply and demand relationships, in the early stages, the number of tokens available for trading is relatively small, while market demand is strong, leading to supply shortage, thus driving prices up. However, as the market’s enthusiasm for the TRUMP meme coin gradually cools down, and some holders sell for profit, prices have also experienced a significant pullback.

6. Market Reaction to Trump’s Policies and Statements

6.1 Crypto Currency Price Trends

In the long run, Trump’s changing attitude towards cryptocurrencies has made the price fluctuations even more frequent. The market is highly sensitive to Trump’s policies and remarks, and any policy adjustments or remarks about cryptocurrencies will trigger strong market reactions. These frequent price fluctuations increase the investment risk of the cryptocurrency market and have a significant impact on investors’ decision-making. Investors need to closely monitor Trump’s dynamics, as well as the market’s reactions to his policies and remarks, in order to adjust their investment strategies in a timely manner and reduce risks.

6.2 The Response of Cryptocurrency-Related Companies

6.2.1 Trading Platform

Coinbase, as a world-renowned cryptocurrency trading platform, is highly concerned about Trump’s policies and remarks, and has made a series of reactions and business adjustments. During Trump’s early criticism of cryptocurrency, Coinbase faced significant regulatory pressure and market uncertainty. In response to this situation, Coinbase has strengthened its compliance and invested significant resources to meet regulatory requirements to ensure the legal operation of the platform. At the same time, Coinbase actively participates in industry associations and policy discussions, and communicates with government departments and regulators to express the demands and views of the industry and strive for a more favorable policy environment.

After Trump’s change of heart and active support for cryptocurrency, Coinbase expressed optimism about the future. Coinbase’s chief policy officer, Shirzadeh, said he thinks crypto legislation will move through Congress “fairly quickly” after Trump enters the White House. This anticipation has led Coinbase to ramp up its business expansion efforts, planning to launch more cryptocurrency trading products and services to meet market demand. For example, Coinbase may add new cryptocurrency trading pairs, optimize the trading interface and user experience, and improve transaction efficiency and security. In addition, Coinbase may also strengthen its cooperation with other financial institutions to explore the integration of cryptocurrencies with traditional financial services to further expand its market share.

6.2.2 Mining Enterprise

The response and strategic changes of Bitcoin mining companies to Trump’s policies are also very obvious. After Trump promised to support Bitcoin mining, the stock prices of Bitcoin mining companies saw a universal increase of about 10% on June 12, 2024, with particularly significant performance from the top ten mining companies. TeraWulf (WULF) and Hut 8 Mining (HUT) saw their stock prices rise by 10.5% and 10.07% respectively, while Core Scientific (CORZ), Iris Energy (IREN), and Cipher Mining (CIFR) saw increases of 9.87%, 9.72%, and 8.94% respectively. This indicates that Trump’s supportive policies greatly boosted market confidence and increased the market value of mining companies.

In order to seize the policy opportunity, bitcoin mining companies are actively adjusting their development strategies. On the one hand, companies have increased their investment in mining facilities and increased mining computing power to increase the production of Bitcoin. For example, some companies plan to build new mining data centers and adopt more advanced mining equipment to improve energy efficiency and reduce mining costs. On the other hand, enterprises have strengthened cooperation with the government and regulatory agencies, and actively participated in the formulation of industry standards to standardize the development of the industry and enhance their competitiveness. In addition, some companies have also begun to explore diversification and expand their business areas, such as blockchain technology application development, cryptocurrency financial services, etc., in order to reduce their dependence on a single mining business and achieve sustainable development.

6.3 Investor Sentiment and Behavior

Investors’ emotions and investment behaviors have significantly adjusted under the influence of Trump’s policies and remarks. When Trump criticized cryptocurrencies in the early days, investors’ emotions were greatly negatively affected, and market panic spread. Many investors are worried about the future development prospects of cryptocurrencies, and have been selling their cryptocurrency assets, leading to a sharp increase in market trading volume. According to market data, after Trump made negative remarks, the selling volume in the cryptocurrency market sharply increased, and the prices of mainstream cryptocurrencies such as Bitcoin also significantly declined.

After Trump’s attitude changed and actively supported cryptocurrency, investors’ sentiment turned optimistic, and market confidence was greatly boosted. Investors’ enthusiasm for cryptocurrency investment has surged, leading to a influx of funds into the cryptocurrency market. According to statistics, after Trump announced the strategic reserve plan for cryptocurrency, the influx of funds into the cryptocurrency market has significantly increased, and the prices of mainstream cryptocurrencies such as Bitcoin have also seen a substantial rise. Many investors believe that Trump’s supportive policies will bring new development opportunities to the cryptocurrency market, and therefore actively adjust their investment portfolios to increase the proportion of cryptocurrency investments.

However, due to the uncertainty of Trump’s policies and the high risk nature of the crypto market itself, investors also have certain concerns and cautious sentiment. Some investors are worried that Trump’s policies may not be smoothly implemented, or may change during the process, which could have a detrimental impact on the crypto market. In addition, the price fluctuations in the crypto market remain significant, posing high investment risks, which also leads some investors to maintain a cautious attitude in investment decision-making, taking measures such as diversified investments and setting stop-loss to reduce risks.

Conclusion

Based on Trump’s policy proposals and the current development status of the crypto market, the future crypto market is expected to usher in a more regulated and prosperous development. With the Trump administration advancing the strategic reserve plan for cryptocurrencies, the status of cryptocurrencies such as Bitcoin in the global financial system may be further enhanced, attracting more institutional investors and countries to participate in the cryptocurrency market, and further expanding the market size.