Crypto’s Big Boost: The Trump Factor
The price of cryptocurrencies, like Bitcoin, has been skyrocketing lately. Some people call this the “Trump effect” because it happened after Donald Trump became president again in 2024. Bitcoin even reached a super high price of over $100,000![1] But is this just a short-term thing, or is it here to stay?
What’s Behind the Trump Effect?
The Trump administration really likes cryptocurrencies. They support them and make policies that help them grow. For example, they want to create a big collection of seized Bitcoin tokens for the country, which could make cryptocurrencies seem more important.[1] They also want to make it easier for banks to use cryptocurrencies.[1]
Crypto-Friendly Policies and People
Trump’s team has been working hard to make things better for cryptocurrencies. They appointed someone who likes cryptocurrencies, Howard Lutnick, as the Commerce Secretary.[1] They also want to get rid of some rules that might stop cryptocurrencies from growing.[1]
Rules and Challenges
The Trump administration has made a plan for digital money that supports things like blockchain, but they don’t want the government to make its own digital money.[3] They want to make rules that are clear and help the U.S. be the best at blockchain technology. But there are still problems like security and how much the market goes up and down.[1][3]
What’s Next for Crypto?
The future of cryptocurrencies depends on many things. If there are clear rules, like the FIT21 Act and the Bitcoin Strategic Reserve Act, it could help cryptocurrencies be more stable and attract more people to invest.[1] But there are also risks, like people trying to cheat and new technology that could change things.[1]
More People Using Crypto
Big companies, like BlackRock and Fidelity, are interested in cryptocurrencies now.[1] The government and these companies might work together more to make things like crypto ETFs, which could help cryptocurrencies grow even more.[1]
Security and Competition
While the U.S. wants to be the best at cryptocurrencies, other countries are also trying to do well. They are making rules to keep people safe, but they might be different from the U.S. rules.[1] The U.S. needs to find a good balance between letting cryptocurrencies grow and keeping people safe.
Will the Trump Effect Last?
The “Trump effect” on cryptocurrencies has been big, but whether it will last depends on many things. While Trump’s policies are helping cryptocurrencies grow, there are still challenges like security and competition from other countries. The future of cryptocurrencies will depend a lot on what the Trump administration does next.
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Sources:
– Worth
– Happy Scribe
– NatLawReview
– TechPolicy.Press