Cryptographic adoption accelerates under the Trump administration. The United States has become a central force in shaping the cryptocurrency market, both from the point of view of regulation and macroeconomics. The cryptographic market began to move American stock market marketsreflecting the growing institutional share and sensitivity to macroeconomic conditions. In his latest report, HTX Ventures browses the implementation of the cryptographic policy of President Donald Trump, the current fluidity of the American dollar and its impact on cryptographic markets.
Learn more about the executions of politics from the time of Trump and catalysts of the growth of the cryptographic market, download the full report here
How the regulation is transforming cryptographic market cycles
Legalization and dollarization are the basic winds of this cycle. Bitcoin is the main beneficiary, acting as a gate for US institutional capital via ETFS, which solidifies the long -term ID card of the American cryptocurrency industry. The process of cryptographic adoption in the US is expected to generate a continuous stream of positive messages and regulatory development.
The evolution of the American cryptocurrency policy probably covers the whole of Trump’s second term. Suggestions of financing gigantic -scale purchases, just like accumulation of gold During the great crisis it will require fiscal maneuvering. These funds may even include engineering negative GDP printouts in order to justify the monetary stimulus, as was the case in previous cycles, including in 2008, 2020 and other periods of economic stress. The US has not yet brought an official budget for sovereign Bitcoin purchases.
Learn more about the executions of politics from the time of Trump and catalysts of the growth of the cryptographic market, download the full report here
Like a strategic Bitcoin reserve can change everything
Unlike previous cycles driven by catalysts, such as ICO Boom in 2017 or Summer Defs in 2020, the current cycle is powered by regulatory change, including supporting SEC on cryptography and the proposed strategic Bitcoin reserve.
The cryptographic market is increasingly adapted to global macro trends, reflecting technological actions in longer, more stable cycles. In the current bitcoins cycle they show a stronger correlation with conventional financial markets, as well as abnormally low variability.
Institutional investors have now become the main driver of Bitcoin price movements. This can be demonstrated by open interest in Futures CME Bitcoin contracts, which increased from less than $ 4 billion before approval of ETF to a consistent level above $ 10 billion, with peaks above $ 20 billion.
However, open interest of CME can be overstated by institutional investors who apply the lever to benefit from the spread between ETF and Futures when the basis exceeds the profitability of the US treasury. If these basic arbitration positions are developed on a scale, they can cause rapid drops in price through ETF outflows.
Implementation of the Trump cryptocurrency policy
The last rules implemented under the Trump administration accelerated the institutionalization of cryptocurrencies. The repeal of SAB 121 has enabled conventional financial institutions to offer conservation services for cryptocurrency assets. As such, Citibank Actively examines the possibility of adding cryptographic detention Jpmorgan chase It plans to offer his clients cryptographic investments through third parties.
Fit21 account and executive actions around Stablecouins have also laid the foundations in terms of long -term regulatory transparency. Fit21, although not yet introduced, sets the direction of digital assets classification. They divide them between SEC and CFTC, depending on the level of decentralization: CFTC is subject to highly decentralized tokens, while more centralized assets remain under SEC supervision.
Future perspectives indicate even more favorable regulatory changes for the cryptographic industry. While the American strategic Bitcoin reserve was recently adoptedVigorous Bitcoin purchases have not yet begun, which suggests that a key growth catalyst can still be ahead of us.
At the same time, Stablecoin is expected to develop rapidly. Proposed Genius Act It aims to create a comprehensive regulatory framework for stableleins supported in dollars, ensuring a justified entry point for banks, payment processors and corporations. Trump’s administration has already supported initiative To enable commercial banks to care or issue Stablecouins during the first term.
Learn more about the executions of politics from the time of Trump and catalysts of the growth of the cryptographic market, download the full report here
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