Crypto’s Bull Run and Trump’s Inauguration: What to Expect
Soon, Donald Trump will officially take charge of the government. Inauguration day is on January 20, 2025, and as the date approaches, excitement around the crypto market and expectations for positive changes continues to grow.
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How will the crypto market react to Trump’s return to the White House? We shared possible scenarios along with expert opinions in this article.
US Election Was a Major Win for the Crypto Community
During his election campaign, the next US president promised to make the US a crypto hub and establish a crypto-friendly regulatory environment. After his win, the market soared, with Bitcoin surging over $100,000 for the first time in early December.
Overall, we can state: crypto won big in the 2024 elections, as the next president is backed by the most pro-crypto Congress in history. During the Congressional elections, more than 240 pro-crypto candidates were elected to the Senate and House of Representatives, including Reps. Adam Schiff (D-Calif.) and John Curtis (R-Utah).
The fact that the majority of lawmakers have positive views on crypto alone is enough to assume that there will be industry-friendly financial regulations. Crypto community members largely celebrated this win of the most pro-crypto Congress.
“It's really the dawn of a new crypto era with this election” – Coinbase founder and CEO Brian Armstrong said in an interview with CNBC.
Key White House Appointments by Donald Trump
After his victory, Trump has been putting together his team, and his picks have made headlines.
The reason?
They are set to change the future of crypto and technology in the U.S.
For example, Trump’s choice for SEC Chair – Paul Atkins, a former SEC commissioner and businessman. He’s replacing Gary Gensler, who has been hitting crypto startups with enforcement actions left and right.
Atkins is known for his pro-crypto views and has served as co-chairman of the crypto advocacy group Digital Chamber’s Token Alliance since 2017. If he takes over, those enforcement actions are likely to slow down, giving startups more breathing room.
Tim Scott, Chairman of the US Senate Banking Committee said he believes Atkins’s extensive experience in financial regulation and understanding of digital assets will be critical to reversing the harm Gary Gensler has done to US capital markets.
Related: Who are you, Mr. Paul Atkins?
Among the most notable moves is Trump’s creation of a new role: “White House AI & Crypto Czar.” He handed this position to David Sacks, a venture investor, former PayPal COO, and well-known tech podcaster. Sacks is tasked with ensuring the U.S. stays on top when it comes to artificial intelligence and blockchain technology.
Howard Lutnick, the chairman and CEO of Cantor Fitzgerald, was selected as Secretary of Commerce. Lutnick’s experience in finance and his support for blockchain technology suggest big plans for integrating crypto into the U.S. economy.
Getting the necessary confirmations by the US Senate, the appointees can begin serving in their roles when power is transferred to the new president on January 20.
How Will the Crypto Market React to Donald Trump’s Inauguration
In 2024, Bitcoin had an outstanding performance, gaining 150% in a year. Trading at around $70,000 just before the presidential election, it then set a record high of $108,000, and at the time of writing, it hovers at around $94,200.
The total crypto market cap stands above $3 trillion.
TRM Labs' head of legal and government affairs Ari Redbord stated that the increased activity goes beyond Bitcoin. For example, fintechs like Stripe and Cash App use stablecoins at scale for payments.
The expected inauguration is anticipated to start a new bull run for crypto, driven by clear regulations, increased use of cryptocurrencies, and their integration into the economy.
Previously, Trump announced plans to make Bitcoin a part of the U.S. National Reserve, and the draft executive order for this initiative has already been finalized.
Considering the growing institutional interest, we can say that there’s potential for optimistic market trends, but predictions on the industry are not quite the same.
Crypto Market and Bitcoin Price Predictions for 2025 and Beyond
A clearer regulatory environment is likely to drive cryptocurrencies up.
According to financial analyst Tom Lee, by the end of 2025, Bitcoin could hit $250,000 driven by government support of Bitcoin, and companies like MicroStrategy adding the asset to their balance sheet.
He predicted a rise for other cryptocurrencies too, including Ethereum (ETH), Solana (SOL) and Avalanche (AVAX).
International bank Standard Chartered predicts Bitcoin’s price to achieve $200,000 this year.
Meanwhile, Charles Schwab said Bitcoin can hit $500,000 – $1,000,000 if the US and other countries start establishing Bitcoin reserves, according to Euronews.
A trader known as @davthewave on X (Twitter) says the $150,000 mark is not far away if Bitcoin repeats its performance from October 2023 to March 2024.
Analysts from VanEck expect the crypto bull run to continue through 2025 making record highs already in the first quarter of the year. According to them, Bitcoin will hit $180,000, with Ethereum (ETH) trading above $6,000. Other major coins like Solana (SOL) and Sui (SUI), could exceed $500 and $10, respectively.
However, Vaneck experts say a sharp decline may follow the rise with declines of up to 60% in summer.
At the same time, they project the growth of stablecoins, with daily settlement volumes reaching $300 billion.
Former BitMEX CEO Arthur Hayes believes immediate results after Trump’s inauguration are unlikely. In the article “Trump Truth” he writes that there’s a wide gap between crypto investors’ high expectations and the reality. He emphasized that political changes take time and the realization that no immediate policy changes will happen may lead to selloffs.
Will There Be a Great Crypto Crash?
According to a recent article in The Atlantic, the anticipated policy changes may initially boost cryptocurrency prices, followed by a severe market downturn with broader economic repercussions.
Eswar Prasad, an economist at Cornell University and a former International Monetary Fund official says that reducing market oversight could lead to an increase in market opacity and volatility, creating a fertile ground for excessive leverage and speculative bubbles.
According to him, Americans will be exposed to more prosaic scams and rip-offs because of the loosened regulations. Prasad says as crypto becomes more common it will become less transparent and unpredictable.
He finds that the next 3 or 4 years will look pretty good, expressing concerns about what will come next because of the next administration's actions.
However, the regulatory rules don’t exist yet, so how they will damage investors is still yet to be known.
The Realistic Look
Trump's second term as the US president is expected to bring changes to the crypto sector, but it’s still unclear exactly how.
With pro-crypto picks in key roles and potential regulatory changes on the horizon, there’s a mix of excitement and caution. That said, investors should stay on their toes – volatility is likely, with some wild swings up and down.
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