Cryptocurrencies were anticipated to surge during a Trump presidency, and they may still do so.
As we approach 2025, numerous leading cryptocurrencies have been experiencing significant increases in value, and this can be attributed to a key factor: the upcoming Trump administration has positioned itself as the most supportive of the crypto sector in history. Several promises made by President Donald Trump during his campaign were expected to enhance the crypto industry’s outlook.
However, the much-discussed Trump bump has not lasted. Bitcoin (BTC 1.94%) is currently trading at a level similar to where it was immediately following the election, and some well-known cryptocurrencies have seen declines of up to 45% this year. This leads to the question: Is the Trump bump in the crypto market over?
Progress Made in 2025
On the regulatory side, the Securities and Exchange Commission has dropped several high-profile cases against cryptocurrency firms and is signaling a more positive stance towards the industry. Former SEC chair Gary Gensler has stepped down and will soon be replaced by Paul Atkins, who is recognized for his pro-crypto perspective.
In an effort to establish America as “the crypto capital of the world,” the Trump administration has introduced a new role — the White House AI & Crypto Czar — to promote rapid innovation within the crypto sector. Additionally, the administration has hosted the inaugural Crypto Summit at the White House, highlighting the importance of the crypto industry in Trump’s economic strategy.
Remaining Actions Needed
Nonetheless, there is still a great deal of work to be done. The U.S. currently lacks a comprehensive regulatory framework for cryptocurrencies. Over the past two years, the SEC has pursued several crypto cases, leading many to believe there is legislation outlining what crypto companies are allowed or prohibited to do, but such regulations do not exist.
Moreover, there are additional support mechanisms for Bitcoin that the Trump administration could implement. Trump had previously pledged to back Bitcoin miners and ensure that all future Bitcoin would be mined domestically. Current strategies appear to combine pro-growth policies for Bitcoin mining with fresh perspectives on American energy policies.
Potential Beneficiaries of Future Moves
If the Trump bump continues, Bitcoin is likely to be the primary beneficiary. There is an increasing acknowledgment of Bitcoin’s status as a strategic asset for the U.S., which could lead to future actions aimed at supporting it. The administration will likely focus on initiatives that bolster Bitcoin’s position globally.
The second potential beneficiary consists of what I term “Wall Street cryptos,” which help bridge traditional finance (Wall Street) with blockchain finance (crypto). A glance at World Liberty Financial, a crypto firm linked to Trump, reveals holdings such as Chainlink (LINK 2.11%), Ondo, Aave, and Ethena.
Lastly, Layer-1 blockchains like Ethereum (ETH 0.68%), Solana (SOL 3.36%), and possibly Cardano (ADA 0.63%) are essential to the blockchain economy and are likely to be prioritized by Trump’s team to drive innovation and growth.
Long-Term Crypto Outlook
A long-term perspective is crucial in assessing this situation. Typically, it is advisable to allow a new administration around 100 days to establish its direction. Thus, there is still time for developments.
In an ideal scenario, campaign commitments could evolve into executive orders, which might then lead to new legislation. If this happens, the Trump bump in the crypto market may not have reached its conclusion yet.
Dominic Basulto holds positions in Bitcoin, Cardano, Chainlink, Ethereum, and Solana. The Motley Fool has positions in and recommends Aave, Bitcoin, Cardano, Chainlink, Ethereum, and Solana. The Motley Fool also recommends Ondo. For more details, check the disclosure policy.
