How Donald Trump’s Pro-Crypto Policies Could Trigger a Market Shift
as Donald Trump, the 47th President of the United States has roiled the cryptocurrency world with policies and actions that could redefine the trajectory of the industry. From regulatory reforms to launching an official Trump-branded token, his administration is making bold moves that will impact Bitcoin, Ethereum, Solana, and more.
Cryptocurrency influencer VirtualBacon highlighted these developments in his detailed X thread, revealing the future of the market.
Trump coin craze
weekend with Two Trump-backed coins launched The entire cryptocurrency space is abuzz: TRUMP and MELANIA. Both Solana-based tokens have taken the market by storm. Trump Coin reached a market cap of $8 billion in one day, with a fully diluted valuation (FDV) of $42 billion, while Melania Coin reached a market cap of $1 billion, with an FDV of $5 billion.
The coins triggered a wave of retail adoption not seen since the Dogecoin craze in 2021. However, U.S. regulations prevent further launches of official Trump-branded tokens, creating these two unique opportunities. Meanwhile, Trump’s Solana, ETH and Memecoin craze may pose a threat to XRP and Bitcoin in the near future.
Policies to support cryptocurrencies are coming soon
Trump signed more than 80 executive orders on his first day in office, but there are rumors that he will sign more than 200 executive orders, many of which may benefit the cryptocurrency industry. Key initiatives may include clarifying the regulation of DeFi and ETFs, supporting blockchain innovation, and even recognizing Bitcoin as a strategic reserve asset. While it seems unlikely that the government will buy Bitcoin on a large scale due to budget constraints, tapping into the 200,000 Bitcoins already held by the U.S. government could set a precedent for other countries.
SEC shakeup brings optimism
Next up, the SEC is undergoing a major change in leadership, with Paul Atkins replacing Gary Gensler. Expected changes include revoking Rule 3b-6, allowing U.S. users to access DeFi platforms like Uniswap, and ending Operation Choke Point, which hampered crypto companies’ banking relationships. These shifts, coupled with progress on the Adapting to the 21st Century Act, could create a more crypto-friendly regulatory environment.
Ethereum and Solana shine
Amid Trump’s pro-crypto stance, Ethereum and Solana emerge as winners. VirtualBacon pointed to Ethereum’s strong ETF inflows, staking ecosystem, and seasonal performance. Solana decentralized exchange (DEX), which hosts Trump Coin and Melania Coin, has seen record trading volumes.
Macro factors drive Bitcoin bull run
Bitcoin is poised to surge higher as macroeconomic factors work in its favor. After the FOMC meetings on January 29 and March 18, the Federal Reserve may turn to quantitative easing (QE), which may inject liquidity into the market. Additionally, a weaker U.S. dollar under the Trump administration could further boost Bitcoin’s appeal.
VirtualBacon recommends holding Bitcoin, Ethereum, and Solana for the short term while monitoring tax reform, ETF developments, and macroeconomic indicators to develop a long-term strategy. As Trump’s pro-crypto stance reshapes the cryptocurrency market, the next bull run may just be beginning.
