Notably, the anticipated return of Donald Trump to the White House, coupled with his pro-crypto agenda, is expected to propel the cryptocurrency market to unprecedented heights during his term, despite regulatory constraints in several nations.
The Donald Trump Effect
Under former US President Joe Biden, the Securities and Exchange Commission (SEC) aggressively pursued cryptocurrency exchanges. Under the leadership of Chairman Gary Gensler, the SEC launched lawsuits against major platforms such as Binance and Kraken, as well as Ripple Labs, the issuer of XRP. Speaking at New York University (NYU) in October 2024, Gensler unequivocally stated that cryptocurrencies could not be considered legitimate currencies. In his view, they merely functioned as stores of value, akin to paintings or works of art.
Previously a sceptic of digital assets, Donald Trump has undergone a remarkable transformation, embracing cryptocurrency in a manner unparalleled among elected officials. He has pledged to introduce crypto-friendly policies and establish the US as the global hub for digital assets. His involvement in the sector extends beyond policy; he has even endorsed a cryptocurrency token bearing his name, along with other crypto-themed ventures. Industry figures have lauded the launch of Trump’s meme coin, followed by one introduced by former First Lady Melania Trump, as a testament to his enthusiasm and commitment to digital assets.
Trump and his sons played a pivotal role in launching World Liberty Financial, a decentralised finance (DeFi) cryptocurrency platform, last year. Meanwhile, Trump’s media enterprise, the Trump Media & Technology Group (TMTG), has signalled its intention to invest in new financial products and DeFi services, potentially including Bitcoin and other cryptocurrencies.
Further cementing its ambitions in the sector, Truth Social, the social media platform associated with Trump, recently filed trademark applications for “Truth.fi Bitcoin Plus ETF” and “Truth.fi Bitcoin Plus SMA.” This move indicates plans to introduce cryptocurrency exchange-traded funds (ETFs) and separately managed accounts. Despite modest revenue and significant losses, Trump supporters have buoyed TMTG’s stock price, raising capital since its public listing last year. Although Trump has no direct decision-making role within TMTG, he remains its largest shareholder, controlling a 53% stake currently valued at over $3 billion.
From Speculative Asset to Established Industry
Since Trump’s election, the cryptocurrency sector has already achieved notable milestones, including the reversal of certain SEC accounting regulations. Moreover, an executive order has been issued, mandating a working group to examine and propose revisions to crypto regulations, alongside exploring the potential establishment of a strategic government cryptocurrency reserve within 180 days.
Several key developments have since acted as catalysts for market volatility. The resignation of SEC Chairman Gary Gensler on 21 November 2024, for instance, triggered a 10% surge in Bitcoin’s price within 24 hours. Market sentiment suggests an imminent shift towards a more crypto-friendly regulatory approach. Since Trump’s electoral victory in November 2024, Bitcoin has skyrocketed from $67,850 to a peak of $109,588 on 20 January 2025, marking an astonishing 61% increase.
Trading activity has also experienced an extraordinary boom. BTC Markets reported a 200% surge in trading volume and a 147% increase in transaction count in November 2024. Additionally, the average trade size saw a 39% year-on-year rise.
Leading global financial institutions are increasingly embracing Bitcoin. BlackRock’s iShares Bitcoin Trust (IBIT) has accumulated $57.5 billion in assets, while Fidelity’s Wise Origin Bitcoin Fund (FBTC) reached $21.76 billion by early 2025. Citigroup has invested $150 million in Bitcoin ETFs, while Goldman Sachs has continued trading Bitcoin futures and investing in blockchain-based enterprises.
Meanwhile, South Korea’s KB Financial Group has emerged as a leader in blockchain investment, further integrating digital assets into mainstream financial services. In Australia, AMP Limited invested AUD 27 million in Bitcoin futures, making it one of the first pension funds in the country to gain exposure to digital assets. These developments underscore a broader shift, as cryptocurrency steadily secures its place in global finance.
Since Trump’s election in early November, the total cryptocurrency market capitalisation has surged 68%, peaking at $3.73 trillion in December 2024. Among the standout performers, XRP has soared by an extraordinary 577%.
Beyond mere speculation, cryptocurrency is evolving into an integral part of the global financial ecosystem. Governments and institutions worldwide are now recognising its potential, leading to increasing regulatory clarity and integration into mainstream finance.
The rise of cryptocurrency represents a seismic shift in the financial landscape. From an obscure digital experiment to a multi-trillion-dollar industry, crypto has established itself as a formidable asset class. With growing institutional backing, increasing governmental recognition, and advancements in blockchain technology, the future of cryptocurrency looks promising.
The potential re-election of Donald Trump, combined with shifting regulatory landscapes and accelerating institutional adoption, sets the stage for a dynamic and transformative period in the digital asset space. As the industry continues to mature, the next few years will be crucial in determining whether cryptocurrency cements itself as the future of global finance or remains a highly volatile and speculative market.
Regardless of the challenges ahead, one thing is certain—cryptocurrency is no longer a fleeting trend; it is a revolution reshaping the world of finance.
