While Donald Trump once dismissed Bitcoin as a “scam” back in 2021, the former president’s stance on cryptocurrency has done a complete 180. His transformation from crypto skeptic to Bitcoin champion culminated in the establishment of a Strategic Bitcoin Reserve and U.S. Digital Asset Stockpile in March 2025. Talk about a plot twist.
The crypto markets have responded with enthusiasm to Trump’s evolving position. Bitcoin surged 200% in 2024 after rate cuts, while memecoins went absolutely bonkers following his re-election. Most of these meme coins crashed within months of their launch.
But here’s where things get really interesting: Trump’s relationship with Federal Reserve Chair Jerome Powell has become increasingly strained, with mounting pressure to slash rates. Using market orders on exchanges, traders have been rapidly responding to each development in the Powell saga.
Powell’s potential replacement could be a game-changer for Bitcoin. Historical data shows that every 1% rate hike knocks Bitcoin down by roughly 5-7%. Do the math in reverse – a dovish Fed chair willing to slash rates could send Bitcoin soaring. It’s not rocket science.
Trump’s broader economic policies are already aligning with Bitcoin’s ecosystem. His support for domestic energy production is a gift to U.S.-based miners, potentially lowering their operational costs. The SAB 121 repeal has further improved conditions for cryptocurrency operations.
Trump’s pro-energy stance boosts Bitcoin mining by creating cheaper power costs for American crypto operations.
The Strategic Bitcoin Reserve, funded through asset forfeitures, signals a serious commitment to cryptocurrency. No selling allowed – Uncle Sam’s becoming a HODLer.
The administration’s approach to digital assets isn’t limited to Bitcoin. The Treasury now manages a stockpile of various cryptocurrencies obtained through forfeitures, with the Secretary calling the shots on their management.
They’re not buying more, but they’re not exactly rushing to dump them either.
With a newly appointed crypto czar and pro-crypto cabinet members, the regulatory landscape is shifting. Institutional investors, who’ve been watching from the sidelines, might finally jump in.
If Trump follows through on his pledge to dismantle crypto regulations while simultaneously pushing for lower rates, Bitcoin could find itself with fewer headwinds and more rocket fuel.
And if Turkey’s currency crisis taught us anything, it’s that economic uncertainty tends to push people toward alternative assets. Just saying.
