Trump recently delivered a long speech in Congress, showcasing a remarkable 43-day governance report, boldly claiming to start a 'Golden Age'. Throughout the speech, he made no mention of cryptocurrency; this president, who once supported $BTC during his first term, has now focused entirely on the traditional economy. Let’s break down what he said and what signals the crypto market can glean from it.
U.S. Economy: Traditional Approach, Will It Benefit the Crypto Space?
Trump immediately criticized the 'inflation nightmare' left by Biden—'I can't even afford eggs,' the worst in 48 years. He countered with data, showing that the small business optimism index soared by 41 points, and confidence in polls turned around by 27 points; Americans are starting to feel hopeful about the country.
His tactics are very hardcore. First, he lowers energy costs, declaring a state of emergency, aggressively drilling for oil and gas, and pulling in Japan and South Korea to invest in pipelines, aiming to drive down energy prices to combat inflation. Second, tax cuts + eliminating waste: promoting a tax cut bill, making tips and overtime tax-exempt, allowing U.S. car loan interest to be tax-deductible, and establishing a government efficiency department (DOGE) (led by Elon Musk), cutting $22 billion in spending for illegal immigrants and $8 million for research on gender-changing mice. There are also new investment incentives, selling 'golden cards' for $5 million to foreigners creating jobs, with the condition they pay taxes in the U.S., while also funding American students.
The results are a $1.7 trillion investment landing—$200 billion from SoftBank, $500 billion from Apple, and $165 billion from TSMC, with factories returning in full swing. He also declared the first balanced budget in 24 years, and lower interest rates making home and car loans cheaper. There was not a hint of crypto in the speech; the anticipated 'BTC-friendly policies' did not arrive.
Tariff Policy Toughens Against the World. Tariffs are Trump's killer tactic, and this time it’s even harsher. He promotes 'Mutual Tariffs': Starting April 2, for every tax others impose on you, you impose the same back. India's car tariff is 100%, China's is double, and South Korea's is quadruple; he demands all to be reciprocal, claiming to 'Protect the Soul of America'.
—Protecting Industries: A 25% tariff hits foreign steel, aluminum, and agricultural products, safeguarding workers and farmers, with steelworker Jeff Denard becoming a hero in his narrative.
—Investment Pressure: High tariffs force Honda and TSMC to build factories in the U.S.; even Apple says 'the money isn't enough' and can get it done without subsidies.
—Geopolitical Leverage: Mexico fears tariffs and hands over cartel leaders; he also threatens Canada to curb fentanyl, or else face tariffs.
This move brings in trillions in revenue and revitalizes industry, but what about the crypto space? The tariff war may strengthen the dollar, putting short-term pressure on safe-haven assets like BTC. However, with global supply chains disrupted, do you think there will be opportunities for crypto payments?
Trump's speech was all about traditional economic tactics—energy, tax cuts, tariffs, hardcore but old-fashioned. The absence of cryptocurrency might indicate that his focus is solely on the 'America First' physical economy; Bitcoin hasn't made it to his core agenda yet. But there are signals: a strong dollar might suppress crypto prices.
In the global market, energy costs have fallen, the stock market may be hot, and the crypto space needs to watch for the implementation of policy details. Do you think Trump will turn around and embrace the crypto market? Or does the crypto space need to become self-reliant?
