What will happen to cryptocurrency after Trump’s inauguration

At the moment, sources expect the publication of at least two decrees that affect the sphere of cryptocurrencies. The first will touch on the topic of the so-called debunking of the industry – that is, the fight of the current US government with cryptocurrency companies through attempts to disconnect them from financial institutions.


We're talking about the so-called "Operation Boost 2.0", in which the administration of Joe Biden insistently recommended banks to stop interacting with cryptocurrency companies. Initially, one could only speculate about this initiative, but as a result of the trial, we did see evidence of the authorities' fight against crypto.

As it turned out, the Federal Deposit Insurance Corporation gave the management of banks to understand that it was desirable to stop co-operation with cryptocurrency companies. And this was done unofficially, which made it difficult to suspect anything wrong at first.


Current SEC Chairman Gary Gensler

Trump’s second possible executive order would repeal the bank accounting policy that requires financial institutions with cryptocurrencies in their own holdings to mark them as a liability. This makes it much harder for banks to hold the coins and essentially discourages them from being associated with the coins.

Here’s a commentary on the situation, as quoted by Cointelegraph.

Trump’s team has made it clear that this is a priority.

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Previously, representatives of the crypto industry shared their experiences of being disconnected from banks because of their connection to the world of decentralised assets. The co-founder of Andreessen Horowitz investment fund Marc Andriessen, Ripple chief Brad Garlinghouse, co-founder of crypto exchange Gemini Tyler Winklevoss and co-founder of trading platform Kraken Jesse Powell have confirmed such things.

According to sources, it is Mark Andriessen who is one of the aides of Trump’s team after the latter’s election victory.

It is also worth remembering the previous publication of The Washington Post. It said that David Sachs, who is responsible for AI and cryptocurrency policy, hosted a dinner for tech CEOs and officials on 20 December. During the event, he announced Trump’s willingness to rescind current US President Joe Biden’s 2023 executive order on artificial intelligence. In particular, one of the formulations noted that first and foremost, AI should work to promote equality.

The two Trump’s executive orders described above will be enough to relieve tension in the coin industry and show the new government’s readiness to change the situation in crypto. Still, the refusal of some banks to co-operate with blockchain companies posed a threat to the latter’s operations, while policies for banks prevented them from engaging with crypto without incurring additional costs, which hindered the development of an entire niche.

Fixing these points will improve the perception of the crypto niche by regular investors, which means there will clearly be more people willing to get involved with the coin.

How Bitcoin will behave after the US presidential election

Yesterday’s collapse of Bitcoin below 90 thousand was a good entry point for long-term cryptocurrency investors. This was the opinion shared by Tom Lee, investment director at Fundstrat Capital, on CNBC. Here’s his rejoinder.

I don’t think anyone will lose money buying BTC at the current 90k. If an investor tries to wait out the moment, maybe they’ll get lucky and the cryptocurrency will drop in price to 70k.

Note that yesterday’s market crash was not the longest lasting. Still today Bitcoin recovered and jumped above the level of 97 thousand.

Hourly chart of Bitcoin BTC rate

Tom Lee noted that Bitcoin could well sag 15 per cent from its all-time high. However, this could be considered a “fairly normal correction” for a “hyper-volatile asset”. The expert continues.

We are still early in the current halving cycle, so I see what is happening as a great opportunity. In my opinion, Bitcoin will be one of the most profitable assets this year in the near term.


Halving is a procedure for reducing the reward per Bitcoin block that occurs every 210,000 blocks or approximately four years. Historically, a full-fledged bullrun in the crypto would start six months to a year after halving, well, the last one took place on 20 April 2024. Therefore, many analysts bet on the fact that the peak of market growth will occur exactly in the new year.


The analyst’s opinion once again reminds about the importance of the change of power in the USA. Still, Donald Trump’s victory in the elections is an unambiguous positive for crypto, as the politician repeatedly supported the industry during the election campaign. And since many members of the renewed Congress also support the coin sphere, the coming months could prove to be very bright for Bitcoin.

Newly elected US President Donald Trump


The sources' information does not guarantee that Trump will sign executive orders as early as 20 January. However, if it does happen, such a thing could be called a new era for the digital asset industry. It will be the first time that the U.S. authorities will essentially move from fighting crypto to supporting it.


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