While choosing to hold the presidency in 2024, Donald Trump has pledged to become “crypto president.” However, since he began his second term in January, cryptocurrency values have crashed.
Bitcoin (Cryptography: BTC) At the time of this writing, prices have fallen from $100,000 to $81,000, from $100,000 on inauguration day. It is worth pointing out that the broader financial markets have also fallen, as the S&P 500 has fallen by about 12% since President Trump took office.
However, current sales could be an opportunity for cryptocurrency investors, especially those interested in Bitcoin. That’s because the policies Trump has introduced could ultimately benefit Bitcoin, the biggest and most widely used crypto. In particular, the two recent policies can support the next Bull Run in Bitcoin.
On March 3, President Trump announced that the US will establish strategic cryptocurrency sanctuaries such as Bitcoin, Ethereum, XRP, Solana and Cardano. The purpose of the reserve was to make the United States “global crypto capital,” Trump said.
The reserves only retain assets that have been confiscated as part of a criminal or civil action. We do not buy or sell cryptocurrencies in foreign markets. Investors who wanted the US to become a major cryptocurrency buyer were disappointed by the announcement.
However, crypto sanctuaries could play a very important role in the next Bull Run after Bitcoin and other crypto assets. It actually recommends them as legitimate assets that can store value.
This opens the door for more institutional investors to adopt Bitcoin for their and their clients’ portfolios. This is because US recruiting assets now appear to be far less risky. The expansion of institutional adoption will be the biggest value driver for Bitcoin in the coming years. Bitcoin prices rise when demand exceeds supply. Institutional investors, and tens of trillion dollars of assets, represent a large number of potential demand.
There is an important relationship between the value of US dollars and Bitcoin. When the dollar weakens, investors look for alternative assets such as cryptocurrencies.
In theory, tariffs on imports would increase the relative value of the US dollar. If demand for foreign goods drops, countries that rely on exports to the US will see currency drop compared to the dollar to maximize supply and demand.
But the big tariffs on Trump in 115 had the opposite effect. Since announcing the wide range of tariffs on April 2nd, the US Dollar index has fallen by about 1.8% at the time of this writing. Returning to Trump’s tariff announcements on Canada and Mexico in January, the index will fall by around 5.5%.
The story continues