The relationship between Trump policies and the cryptocurrency market
During the Trump administration, the loose regulatory and monetary policies had a profound impact on the cryptocurrency market. The administration's overall attitude towards cryptocurrencies was supportive, especially in promoting digital assets as safe-haven tools, fully unleashing market potential. Here are some key impacts:
Loose monetary policy: The Trump administration's massive fiscal stimulus and monetary easing measures led to the depreciation of the dollar, exacerbating market demand for inflation-hedging assets. As a hedge tool, Bitcoin has gradually been favored by institutional and retail investors, becoming 'digital gold.'
The relaxed regulatory environment: The Trump administration did not impose strict restrictions on cryptocurrencies, which helped the crypto market avoid excessive uncertainty to some extent. The government maintained a neutral stance, providing greater freedom for the development of Bitcoin and other cryptocurrencies.
Inflow of international capital: The loose policies and low-interest-rate environment of the US financial market attracted a large amount of capital into the crypto market. Especially with the increasing awareness of Bitcoin, more and more institutional investors have begun to enter this market in large numbers, driving up the price of Bitcoin.
Current price trends and market environment
As of April 2025, the price of Bitcoin (BTC) is approximately $93,843, while Ethereum (ETH) is around $1,792. Although these prices have retreated compared to the historical highs of 2024 (Bitcoin around $109,000, Ethereum $4,891), they still remain in a relatively healthy range, indicating that market demand is still strong. Here is the current market performance of Bitcoin and Ethereum:
Bitcoin (BTC): The current price is $93,843, down about 14% from the historical high in January 2024.
Ethereum (ETH): The current price is $1,792, down about 63% from the high in January 2024.
Despite price fluctuations, market inflows remain strong, especially with continuous inflows from institutional funds, which provide solid support for prices.
Market sentiment for Bitcoin and Ethereum
Bitcoin: Bitcoin is increasingly viewed by investors as a safe-haven tool, particularly in the context of global economic uncertainty, where investors see Bitcoin as a strong asset against inflation. The price correction of Bitcoin is more about technical adjustments in the market rather than doubts about its value.
Ethereum: The demand for Ethereum comes more from its applications in decentralized finance (DeFi) and smart contracts. Although the price has retreated significantly, the long-term growth potential of Ethereum remains optimistic, especially with the advancement of the Ethereum 2.0 upgrade, which will further enhance its scalability and transaction efficiency.
Subsequent impacts of Trump administration policies
Future price trends
Short-term forecast: Bitcoin is currently in the price range of around $93,000; if it breaks through $95,000, it is likely to challenge the psychological barrier of $100,000. Ethereum may fluctuate between $1,700 and $2,000, waiting for further breakthroughs.
Medium to long-term forecast: Some analysts believe that if Bitcoin continues to attract institutional investment, the price could break through the range of $150,000 to $200,000 by the end of 2025. As for Ethereum, with the network upgrades (such as Ethereum 2.0), it could potentially surpass the range of $3,000 to $4,000.
Conclusion: The future of the cryptocurrency market remains full of opportunities
The policies of the Trump administration provided a loose environment for the cryptocurrency market, allowing Bitcoin and other cryptocurrencies to develop rapidly under less regulatory pressure. Despite some market corrections, Bitcoin, as the leading global digital asset, still shows strong market demand due to its safe-haven characteristics.
In the long term, with increasing global economic uncertainty and the continued influx of institutional investors, the long-term appreciation potential of cryptocurrencies such as Bitcoin and Ethereum remains promising. Therefore, investors should remain alert during short-term fluctuations, and holding crypto assets long-term still deserves attention as an investment direction.
