In just a few weeks, President-elect Donald Trump will return to the White House, sparking anticipation within the crypto industry. Many expect swift actions to fulfill his pro-Bitcoin promises.
Lofty Ambitions for Bitcoin in the U.S.
Trump has outlined ambitious plans, including ensuring all remaining Bitcoin (BTC) is mined within the U.S. and creating a strategic Bitcoin reserve. His vision positions America as the global leader in cryptocurrency.
Fortunately for Trump, some of his objectives already have momentum. The resignation of SEC Chair Gary Gensler eliminates the need for Trump to fire him on his first day in office. Paul Atkins, a pro-crypto figure, has been nominated to succeed Gensler.
David Sacks has also been appointed as the White House’s AI and crypto czar. Meanwhile, industry leaders are flocking to Mar-a-Lago, seeking roles on a new advisory council dedicated to digital assets.
Market Response: Bitcoin’s Surge
These developments have fueled a remarkable rally in Bitcoin, with prices surging by 60% since November 5. Optimism among investors has led to predictions of record highs in 2025. However, some analysts urge caution.
A Reality Check for Optimistic Investors
Arthur Hayes, co-founder of BitMEX, warns of potential disappointment as Trump’s inauguration approaches on January 20. According to Hayes, the president-elect may face challenges in meeting high expectations. He noted:
“There is a significant gap between crypto investors’ high hopes for swift change and the reality of the politically acceptable solutions available to Trump.”
Strategic Bitcoin Reserve: Feasibility in Question?
While the idea of a U.S. strategic Bitcoin reserve has gained traction, hurdles remain. An uncertain economic climate and political challenges could stall progress. Cryptonews consulted experts to gauge the likelihood of Trump’s crypto policies succeeding.
Industry Perspectives: Optimism Tempered by Challenges
Samson Mow, CEO of JAN3, believes the impact of Trump’s pro-Bitcoin stance is uncertain. However, he highlights areas where the U.S. could gain a competitive edge.
“Policies supporting Bitcoin mining and reducing regulatory burdens could position the U.S. as a global leader. If implemented strategically, America’s example could inspire other nations,” Mow said.
Chainalysis’ Phil Larratt emphasizes the importance of Trump’s first 100 days in office. This period will be critical in determining the administration’s success.
Industry groups are also pushing for action. The Bitcoin Policy Institute has drafted an executive order to establish a strategic reserve using 200,000 BTC seized from criminals. Some propose purchasing up to one million BTC over five years.
Ruslan Lienkha, YouHodler’s chief of markets, remains skeptical about Trump fulfilling all his promises by 2025. He believes that ambitious goals, such as including Bitcoin in strategic reserves, are unlikely to materialize before 2026.
“Achieving these objectives will require regulatory clarity, broader societal acceptance, and market stability,” Lienkha explained.
A Favorable Political Climate?
Others, like Michael Terpin, author of Bitcoin Supercycle, are more optimistic. With a conservative majority in Congress and moderate Democrats showing support for crypto, substantial opposition seems unlikely.
Neil Bergquist, CEO of Coinme, believes regulatory clarity will drive significant investment and innovation in the crypto space. However, he cautions that Trump’s success depends on factors beyond his control, such as congressional approval and the actions of regulatory bodies like the SEC, CFTC, and Treasury Department.
“Despite these challenges, the odds are more favorable than ever with a supportive president and pro-crypto leaders at key agencies,” Bergquist added.
Public Support and the Future of Bitcoin
A Coinme study revealed that 49% of Americans support establishing a strategic Bitcoin reserve. Despite potential setbacks, Samson Mow remains optimistic about Bitcoin’s long-term prospects.
“Bitcoin’s success doesn’t rely on any single government or administration. Its decentralized nature ensures its resilience. JAN3 is actively engaging with lawmakers worldwide, and it’s only a matter of time before more nations adopt Bitcoin strategies,” Mow concluded
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