Bitcoin explosion: Trump's crypto-friendly turn causes record prices!

Bitcoin explosion: Trump's crypto-friendly turn causes record prices!

The Bitcoin market has shown a remarkable reaction following Donald Trump's victory in the November 2024 presidential election. Bitcoin saw its price skyrocket from around $69,539 on election day to a record high of $111,970. This corresponds to an increase of 60% within a few months. But on February 25, 2025, the price of Bitcoin fell below $90,000, which was attributed to investor reactions to new tax announcements from Trump. Despite short-term setbacks, the market is showing strong recovery and remarkable confidence in Bitcoin's long-term prospects. Analysts see the price increase as a result of expectations of a more crypto-friendly government that could lower barriers to entry and attract new capital inflows.

The shift in Trump’s stance on cryptocurrencies is significant. While he called Bitcoin a “fraud” in 2019, he spoke positively about digital currencies in 2024. Trump has secured the support of cryptocurrency investors and plans to make the US the “cryptocurrency capital of the world.” The market has shifted from a wait-and-see attitude to active participation. The Bitcoin price is currently around USD 110,000, with a circulating supply of almost 19.9 million BTC and a market capitalization of around USD 2.180 billion.

Political changes and strategies

When the Trump administration took office in January 2025, there was a significant shift in US policy towards cryptocurrencies, particularly Bitcoin. Key initiatives include creating a strategic Bitcoin reserve and holding the first crypto summit at the White House. This Strategic Bitcoin Reserve, made up of confiscated Bitcoins, is intended as a signal for the integration of cryptocurrencies into U.S. economic policy, with the goal of building a reserve at no additional cost to taxpayers.

Reactions to these initiatives have been mixed. Venture capitalists like Anil Lulla of Delphi Ventures are optimistic, while some experts see the measures as more symbolic. The White House Crypto Summit, which took place in 2025, raised high expectations for concrete regulation. However, no tangible results have been achieved so far, and discussions around possible stablecoin legislation to strengthen the US dollar appear to have more of a positive signaling effect for crypto players, even if the lack of clarity remains an obstacle to progress.

Market opportunities and challenges

Future developments in the Bitcoin market remain uncertain and depend on various factors. While market sentiment has shifted towards optimism, risks remain from Bitcoin's close association with the government and possible political changes. Controversies surrounding Trump's personal activities in the cryptocurrency space could affect the confidence of institutional investors. Nevertheless, the combination of Trump's re-election and crypto-friendly policies is likely to usher in an unprecedented period of growth for Bitcoin, provided the political environment remains stable.

In conclusion, the US is at a turning point in the cryptocurrency industry through initiatives such as the Bitcoin Strategic Reserve and the Crypto Summit. Expectations for clearer regulations, particularly for stablecoins and market structure, could set the stage for a new era in the crypto economy, bringing both opportunities and challenges for the industry. Further discussions on the legal framework for cryptocurrencies are expected in the coming months.