How Donald Trump’s Pro-Crypto Policies Could Trigger a Market Shift

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As the 47th President of the United States, Donald Trump has stirred the crypto world with policies and actions that could redefine the industry’s trajectory. From regulatory reforms to the launch of official Trump-branded tokens, his administration is making bold moves that are set to impact Bitcoin, Ethereum, Solana, and beyond.

Crypto influencer VirtualBacon highlighted these developments in his detailed X thread shedding light on what lies ahead for the market.

The Trump Coin Frenzy

Over the weekend with the launch of two Trump-backed tokens buzzed the entire crypto space: Trump Coin (TRUMP) and Melania Coin (MELANIA). Both coins, built on Solana, took the market by storm. Trump Coin reached an $8 billion market cap within a day, with a $42 billion fully diluted valuation (FDV), while Melania Coin hit a $1 billion market cap and $5 billion FDV.

These coins have ignited a wave of retail adoption unseen since Dogecoin’s 2021 frenzy. However, U.S. regulations prevent further official Trump-branded tokens, making these two unique opportunities. In the meanwhile Trumps Solana, ETH and Memecoin craze can be a threat to XRP and Bitcoin in the near future. 

Pro-Crypto Policies on the Horizon

Trump signed 80+ executive orders on his very first day however there are rumors that he will sign over 200 executive orders, many of which could favor the crypto sector. Key initiatives may include regulatory clarity for DeFi and ETFs, support for blockchain innovation, and even recognizing Bitcoin as a Strategic Reserve Asset. While large-scale Bitcoin purchases by the government seem unlikely due to budget constraints, leveraging the 200,000 BTC already held by the U.S. government could set a precedent for other nations.

SEC Shake-Up Brings Optimism

Moving on, the SEC’s leadership is undergoing a major transformation, with Paul Atkins replacing Gary Gensler. Expected changes include the withdrawal of Rule 3b-6, allowing U.S. users access to DeFi platforms like Uniswap, and the end of Operation Choke Point, which has hindered crypto companies’ banking relationships. These shifts, along with progress on the Fit for the 21st Century Act, could create a more crypto-friendly regulatory environment.

Ethereum and Solana Shine

Ethereum and Solana stand out as winners under Trump’s pro-crypto stance. VirtualBacon pointed to Ethereum’s strong ETF inflows, staking ecosystem, and seasonal performance. Solana, hosting the Trump and Melania Coins, is seeing record decentralized exchange (DEX) volumes. 

Macro Factors Fuel Bitcoin’s Bull Run

Bitcoin is primed for a significant rally, with macroeconomic factors aligning in its favor. A potential Fed pivot to quantitative easing (QE) after the Jan. 29 and Mar. 18 FOMC meetings could inject liquidity into the market. Plus, a weaker U.S. dollar under Trump’s administration could further boost Bitcoin’s appeal.

VirtualBacon advises holding Bitcoin, Ethereum, and Solana in the short term while monitoring tax reforms, ETF developments, and macroeconomic indicators for long-term strategies. With Trump’s pro-crypto stance reshaping the crypto market, the next bull market could be just beginning.