Trump's Pro-Crypto Initiatives
President-elect Donald Trump plans to implement executive orders aimed at reducing regulatory burdens on cryptocurrency companies and promoting digital asset adoption. These initiatives include establishing a crypto advisory council and directing the Securities and Exchange Commission (SEC) to rescind stringent accounting guidelines for holding cryptocurrencies. Additionally, Trump intends to end "Operation Choke Point 2.0," which has been criticized for limiting crypto firms' access to traditional banking services.
Market Response and Bitcoin Surge
In response to the anticipated crypto-friendly administration, Bitcoin's price has surged, surpassing $104,000. This rally has positively impacted related stocks, with companies like MicroStrategy, Coinbase, Riot Platforms, and Mara Holdings experiencing notable gains. Bitcoin has surged nearly 50% since Trump's election victory, reaching an all-time high of over $108,000 in the previous month.
XRP's Record Highs
XRP, the third-largest cryptocurrency by market capitalization, reached a record high of $3.40 before stabilizing around $3.20. This surge is attributed to market optimism surrounding the incoming administration's potential crypto-friendly policies, including the possible nomination of pro-crypto former SEC Commissioner Paul Atkins as chair of the securities regulator.
Crypto Industry's Support for Inauguration
Cryptocurrency companies have donated at least $10 million to President-elect Donald Trump's inauguration fund, celebrating his second term as the first explicitly pro-crypto U.S. president. Major contributors include Ripple, Coinbase, Kraken, Robinhood, and Circle. These companies aim to influence favorable regulatory changes and policy frameworks under the incoming administration.
Stock Market Movements
Robinhood and Coinbase have seen significant stock value increases, bolstered by favorable Wall Street evaluations highlighting their strong positions in the cryptocurrency sector. Analysts have set optimistic price targets for these companies, anticipating growth in cryptocurrencies and potential benefits from a crypto-friendly administration.
Trump's Planned Executive Orders
As Inauguration Day approaches, President-elect Trump plans to issue over 100 executive orders focusing on the digital asset industry. These include policies on crypto de-banking and accounting, with a broader, potentially more favorable regulatory framework. The administration aims to establish a strategic bitcoin reserve and a crypto council, signaling a shift from the previous administration's regulatory stance.
Bitcoin's Milestone
Bitcoin has once again surged past $100,000 as anticipation builds for pro-cryptocurrency policies from President-elect Donald Trump, who previously voiced skepticism but has since become an advocate. The crypto community is optimistic about a shift in regulatory tone, expecting significant moves like creating a U.S. bitcoin reserve and assembling a crypto advisory council.
Venture Capital Trends
In 2025, venture capital firms are anticipated to favor investments in cryptocurrency and artificial intelligence (AI) over climate and renewable start-ups, largely due to the policies of the Trump administration. This shift reflects the administration's focus on promoting digital assets and technological innovation.
These developments underscore a dynamic and rapidly evolving cryptocurrency market, influenced by political changes and investor sentiment.