Crypto adoption is accelerating under the Trump administration. The United States has emerged as a central force in shaping the crypto market, both from the standpoint of regulation and macroeconomics. The crypto market has begun moving along with US stock markets, reflecting growing institutional participation and sensitivity to macroeconomic conditions. In its latest report, HTX Ventures reviews the implementation of President Donald Trump’s crypto policies, current US dollar liquidity and its effect on the crypto markets.
How regulation is reshaping crypto market cycles
Legalization and dollarization are the defining core tailwinds of this cycle. Bitcoin stands as the primary beneficiary, acting as a gateway for US institutional capital through ETFs, which solidifies the long-term legitimacy of the US crypto industry. The crypto adoption process in the US is expected to generate a continuous stream of positive news and regulatory developments.
The evolution of US crypto policy will likely span the entirety of the second Trump term. Proposals to finance large-scale Bitcoin purchases, similar to the accumulation of gold during the Great Depression, will require fiscal maneuvering. These measures may even include engineering negative GDP prints to justify monetary stimulus, as has occurred in past cycles, including 2008, 2020, and other periods of economic stress. The US has not yet allocated an official budget for sovereign Bitcoin purchases.
