Bitcoin “in the Trump era 2.0”: Historic boost or virtual bubble?

(Dan Tri) - Bitcoin broke out to a peak of 111,000 USD after Mr. Trump was re-elected. Is it a sign of a new era of stability, or just a bright dawn before the storm?

Bitcoin “rides the wave” of re-election with a peak of 111,000 USD

The bitcoin market reacted almost immediately after the November 2024 election results were announced, with Donald Trump winning. From a low of around $69,539 at the end of Election Day, the cryptocurrency began a meteoric rise. In just a few months, the price of bitcoin has increased by an impressive 60%. The mania peaked recently when bitcoin hit a new record high of $111,970, up 2.6% from its previous Inauguration Day high of $109,114.

This growth has not been a straight line. The market experienced a “heart-stopping” moment on February 25, when bitcoin suddenly plunged below the $90,000 threshold. The cause was believed to be investors’ reaction to President Trump’s announcement of new tariffs on many countries and global industries. However, the rapid recovery after that showed strong market confidence in bitcoin’s long-term prospects under the new administration, or at least its ability to adapt to macroeconomic policy fluctuations.

The surge in prices, according to analysts, is largely due to investors’ expectations of a more crypto-friendly government. Changes in regulations and regulatory approaches are expected to lower barriers to entry, thereby attracting new capital and promoting wider acceptance of digital assets, especially bitcoin.

From “scam” to “cryptocurrency capital” ambitions

Bitcoin's spectacular surge under Trump's new term would be difficult to fully understand without looking back at the dramatic turnaround in his views on cryptocurrencies, from fierce opposition to strong commitment to support.

In 2019, while in office, Mr. Trump harshly criticized Bitcoin, calling it “not a currency,” “volatile,” and “based on thin air.” After leaving the White House, he also called Bitcoin “a fraud” on Fox Business. These statements once caused the crypto community to be shaken, worried about the unrecognized future of digital currency.

But just a few years later, that view has completely changed. The turning point came in May 2024, at a crypto event at the Mar-a-Lago resort. According to sources, Mr. Trump received significant financial support from cryptocurrency investors - a force that is becoming a powerful political force.

Since then, he has continued to send out “friendly” signals: meeting with bitcoin miners, speaking in support of cryptocurrencies at a major conference in Nashville, and making an ambitious statement: turning the US into the “cryptocurrency capital of the world ”. During his trip to the Middle East, he even told the press: “I am a big fan of crypto”.

Behind this change is also the influence of close advisors such as his sons, billionaire Elon Musk, or David Sacks - venture capitalist and the person considered the "crypto boss" in the new policy orbit.

From calling bitcoin a “fraud,” Trump now has the opportunity to shape the future of the digital currency. And it is this reversal that has contributed to the unprecedented bitcoin craze under the Trump 2.0 administration.

Once calling bitcoin a “scam,” Trump now claims to be a “big fan” of digital currency, contributing to the unprecedented bitcoin craze under the Trump 2.0 administration (Photo: Getty).

Decoding the Bitcoin Fever Under Trump

To understand why bitcoin is surging, it is important to look at the cryptocurrency policy under President Trump. Unlike the Biden administration, which has tightened regulations, the Trump administration has been open and created favorable conditions for the development of the cryptocurrency industry.

One of the important steps is the change of personnel at the SEC, when Mr. Gary Gensler, who has been a troublemaker for the industry, was replaced by Mr. Paul Atkins - who has a more supportive attitude towards cryptocurrencies. This is seen as a positive signal, promising a more "breathable" policy for the market.

Many “tough” regulations under Biden were also adjusted or abolished. The US Senate quickly passed supporting bills, such as the establishment of a “Strategic Bitcoin Reserve” and a “Digital Asset Vault” – to effectively manage bitcoins seized in lawsuits, while affirming Bitcoin’s strategic position for the country.

The White House also emphasized that the US was one of the first countries to build a bitcoin reserve, viewing this as a major strategic advantage, especially when the bitcoin supply is limited to only 21 million BTC.

Although Biden has made progress such as allowing 11 spot Bitcoin ETFs to operate from early 2024, it is the Trump administration that has really created a strong psychological boost for the market. The Fed's withdrawal of risk warnings for banks also contributed to removing the final barrier.

Bitcoin is currently priced at around $110,000 with a circulating supply of nearly 19.9 million BTC, and a market capitalization of around $2,180 billion - equivalent to the GDP of a large country like Brazil or Canada. This proves that Bitcoin is not only an investment channel but also a strategic asset that is increasingly recognized, reflecting the Trump administration's changing view of cryptocurrencies.

Whispers from the Market: Between Optimism and Caution

The apparent support from the White House has fueled optimism in the bitcoin investment community, with analysts saying the market sentiment has shifted from “wait and see” to “actively participate” as regulatory hurdles are gradually removed and a clearer roadmap for the US cryptocurrency industry takes shape.

Not all is rosy, however. Some more cautious observers point out that bitcoin’s close ties to a particular government could pose potential risks. Any changes in policy stance or unforeseen political developments could have a dramatic impact on bitcoin’s value.

Furthermore, the controversy surrounding President Trump’s personal activities in the cryptocurrency sector, such as the launch of the $TRUMP meme coin or his family’s investments in the industry, although not directly related to macro policy for bitcoin, also creates a certain “fog”. Critics are concerned about the risk of conflicts of interest and the possibility that policies are issued not entirely for the general interest of the industry but may be influenced by personal factors. This, even if only a risk, can affect the confidence of a part of institutional investors who prefer absolute transparency and stability.

The meme coin $TRUMP caused a storm when it was launched earlier this year (Photo: Getty).

There is no denying that Trump’s re-election and subsequent crypto-friendly policies have created one of the most impressive growth periods in bitcoin’s history. The “King of Crypto” has benefited not only from greater regulatory clarity but also from strategic recognition from a leading global power.

However, the journey ahead for bitcoin is still fraught with uncertainty. Is this growth sustainable? Will the policy changes truly create a solid foundation for long-term growth, or are they just stopgap measures? And will the controversy surrounding individual activities overshadow efforts to build a sound regulatory framework for the industry as a whole?

The answer will depend on many factors: the consistency of government policy, the maturity and self-regulation of the bitcoin market, and how the industry faces and addresses regulatory, security, and public trust challenges. Under the “new Trump era,” bitcoin is clearly facing a historic opportunity, but the path to global recognition and mainstream asset status remains fraught with challenges.

Source: https://dantri.com.vn/kinh-doanh/bitcoin-len-dong-thoi-trump-20-cu-hich-lich-su-hay-bong-bong-ao-20250530090553112.htm