Trump Takes Office, Ushering in a Turning Point for Crypto Markets

- Bitcoin Surpasses $109,000 - Attention on Government's Cryptocurrency Policy Changes [Unblock Media] With former President Donald Trump assuming office as the 47th President of the United States on January 20, a new phase has begun in the cryptocurrency market. Since Trump's return to the White House after four years, the price of Bitcoin has seen a sharp rise, surpassing an all-time high of $109,000 on the day of his inauguration. This is an increase of over 25% compared to three months prior, reflecting the market participants' anticipations. Eugene Epstein, head of trading and structured products at Moneycoff, analyzed in an interview with Cointelegraph that "government interest is the biggest variable. The key is whether it translates into actual policies." Until just before Trump's inauguration, the sentiment in the cryptocurrency market was more about expectation than certainty. This was because the stance of the political sector was unclear, given the previous administration's aggressive push for stringent regulations on cryptocurrencies, including by the U.S. Securities and Exchange Commission. President Trump has begun to take a crypto-friendly approach. A notable example is the appointment of David Sacks as the White House's cryptocurrency chief. Sacks, a co-founder of the online payment service PayPal, has been actively investing in the tech and cryptocurrency sectors and holds significant influence in the blockchain and digital asset industry. The industry views his appointment as a testament to the Trump administration's intent to foster cryptocurrency as a national core industry. Another point of interest is the U.S. government's large-scale cryptocurrency purchase plan. The U.S. already holds over 200,000 Bitcoin (worth around $22 billion), making it one of the world's largest Bitcoin holders. During the campaign, Trump stated that he would "consider a national Bitcoin strategic reserve like El Salvador," which has drawn investors' attention to whether additional purchases or reserves will be realized. Epstein warned, "If the Treasury concretely pushes for state-level Bitcoin reserves and utilization, it would be a significant boon to the market. However, since expectations are already largely reflected in the market, a lack of actual policy follow-through could lead to price adjustments." He continued, "Various policy proposals, such as funding public projects through cryptocurrencies or introducing public service payment systems, could be suggested." During his campaign, President Trump reiterated several times, "If cryptocurrencies define the future, that future should be mined and issued in America." This is interpreted as an intention to clarify regulations within the U.S. and nurture the industry to take the initiative in the advanced digital economy competition. It has been hinted that the White House will also promote artificial intelligence alongside cryptocurrencies as major strategic sectors, raising expectations across the industry. Stacey Herbert, leading the National Bitcoin Office of El Salvador, assessed, "President Trump's return to the White House is likely to be a positive factor for the cryptocurrency market." However, cautious views on Trump's approach are also emerging. The so-called 'TRUMP' meme coin, launched just before his inauguration, rapidly gained tens of billions of dollars in market capitalization, attracting explosive attention. Some experts have labeled this as a 'speculative frenzy.' Nigel Green, CEO of the British financial consulting firm deVere Group, expressed concern, stating, "While the new administration's cryptocurrency policies will positively impact major assets like Bitcoin, they also risk fueling rampant speculative mania like with meme coins." He pointed out, "When excessive marketing through social media combines with political trends, investors can easily lose rational judgment." The cryptocurrency strategy expected to be fully developed with President Trump's term is likely to have a significant impact on the global market. However, it remains uncertain whether the issues of stringent regulations and legal uncertainties imposed by past administrations will be completely resolved and how quickly specific policies will be implemented. Nevertheless, industry stakeholders are hopeful about this period as a turning point for the cryptocurrency market, given that the recognition of 'cryptocurrency as a future asset and technology' has expanded to a government level.