The upcoming crypto-friendly approach of the US government could potentially lay the foundation for new highs for Bitcoin and other digital assets.

The United States is set to usher in a new era with the inauguration of Donald Trump as the 47th president on January 20. The ceremony marks Trump's triumphant return to the White House after a four-year hiatus under former president Joe Biden‘s administration. This has immediately sparked optimism in the crypto markets, with Bitcoin reaching new highs as anticipation grows that the new administration will embrace an industry-friendly approach.

A Strategic Bitcoin Reserve and the Future of Crypto in the US

Trump's return has boosted expectations for Bitcoin, with the price surpassing its all-time high of $109,000 on inauguration day. The US is currently the largest sovereign holder of Bitcoin, mostly due to judicial seizures, holding over 200,000 BTC in custody, worth nearly $22 billion.

There are expectations that the US will make massive Bitcoin purchases in the near future, something Trump previously mentioned during his campaign: the creation of a strategic Bitcoin reserve for the country, similar to El Salvador‘s initiative. Many prominent figures in the crypto industry, such as MicroStrategy CEO Michael Saylor, have praised this idea, advocating for countries, including the US, to accumulate Bitcoin as a hedge against inflation.

The Importance of Crypto for the US Under Trump

Trump has shown renewed interest in cryptocurrencies during his 2024 campaign, prioritizing the sector for his second term. He has also indicated the possibility of introducing clear regulations to provide more clarity for the industry. The appointment of crypto-friendly staff, such as Silicon Valley investor David Sacks as crypto czar, points to a dramatic shift from the policies of the previous administration.

Although Trump has not yet fully detailed his plans, the inclusion of crypto-friendly policymakers could significantly impact the growth of Bitcoin and other digital assets in the US.

Caution Remains Advised

While optimism is high in the crypto community, experts are warning against hasty investments. The recent launch of the TRUMP memecoin by the president, which attracted record demand and caused the market value to skyrocket in a short time, has sparked debate. Experts emphasize that this hype is more akin to gambling than investing.

The potential shift towards a pro-crypto policy under Trump may undoubtedly open up new opportunities for Bitcoin and other digital assets. However, much remains to be seen about how this policy will unfold, and caution is still important for investors.

Disclaimer

This is not financial advice. Always consider conducting your own research and seeking professional advice.