By Mehrullah Jamali | Financial Analyst – Digital Assets & Global Macro Trends
The return of Donald Trump to the political spotlight has reignited a wave of optimism in the cryptocurrency community. Once considered a skeptic of digital assets, Trump has pivoted in recent months toward a surprisingly pro-crypto stance, raising hopes that his presidency could usher in a golden era for blockchain innovation and crypto adoption in the United States.
The market responded swiftly. Major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) witnessed a surge in both price and volume, reflecting heightened expectations. Bitcoin, in particular, soared past key resistance zones as institutional sentiment turned bullish, catalyzed by speculative positioning around policy expectations under a Trump administration.
Initial Market Reaction: Euphoria and Entry
Following the announcement of Trump’s renewed political campaign — accompanied by his public commitment to support innovation in blockchain, deregulate digital assets, and even explore adding crypto to the national strategic reserve — the market saw a sharp uptick:
- BTC breached $73,000, testing new highs amid growing institutional accumulation.
- Trading volume on U.S.-based exchanges surged by over 35% within a 3-week period.
- Crypto ETFs, particularly those from BlackRock, Ark Invest, and Fidelity, saw record inflows as investors speculated on a pro-crypto policy framework.
This rally was driven largely by hope-fueled sentiment, with the belief that Trump’s policy pivot could lead to:
- Regulatory clarity from the SEC and CFTC,
- Broader retail access to crypto through ETFs,
- The inclusion of Bitcoin in national reserves, and
- A roll-back of restrictive executive orders on self-custody and privacy coins.
The Pullback: Reality Check or Re-Entry Opportunity?
However, within a month of the Trump campaign momentum, Bitcoin experienced a sharp correction, falling from highs of $73K to nearly $61K, triggering widespread concern that the rally was premature or overextended.
This correction raised pressing questions:
- Was this a loss of hope, a sign that market expectations were inflated?
- Or was it merely a technical correction offering institutional players a chance to rebalance and reaccumulate?
Looking at on-chain data and derivatives positioning, the evidence points to the latter:
- Whale wallets continued accumulating during the dip.
- ETF inflows remained net positive despite the decline.
- Funding rates normalized, suggesting a healthy market reset rather than capitulation.
Indeed, Bitcoin has since rebounded swiftly, reclaiming prior support levels around $67K, signaling strong underlying demand and belief in the long-term narrative.
The Institutional Thesis: Hope Is Still Alive
The fast recovery and continued institutional engagement suggest that hope has not faded — it has matured.
📈 Institutional Developments Post-Correction:
- BlackRock’s Bitcoin ETF (IBIT) added over $750 million in AUM since the dip.
- BlockRocky, a Hong Kong-based asset manager, announced its $1.2 billion allocation to BTC and ETH via U.S. ETFs.
- Fidelity and Ark Invest filed amendments to their ETF strategies, introducing blended exposure to DeFi protocols.
These actions underscore a strategic shift from short-term speculation to long-term conviction.
Trump’s Strategic Reserve Proposal: Game-Changer or Campaign Optics?
Trump’s proposal to explore Bitcoin and other digital assets as part of the U.S. strategic reserve has stirred both excitement and skepticism.
While still lacking official policy architecture, the implications are profound:
- It would legitimize Bitcoin as a sovereign-grade store of value.
- It could set a precedent for other nations, especially in the BRICS bloc, to explore similar diversification.
- It may trigger a supply shock, given Bitcoin’s limited issuance, if the U.S. government begins accumulating.
For now, this remains aspirational, but the signal to markets is strong — the narrative has shifted from opposition to inclusion and innovation.
Macro Risks Remain, but Sentiment Is Shifting
To be clear, macro challenges persist: inflation uncertainty, interest rate volatility, and regulatory fragmentation. However, the narrative tailwinds around crypto in a potential Trump presidency have altered the medium- to long-term outlook.
Key bullish indicators include:
- Growing bipartisan support for digital asset regulation in Congress.
- Momentum toward stablecoin legislation and SEC reform.
- An evolving geopolitical landscape, where crypto represents both financial innovation and sovereignty.
Conclusion: A New Chapter or Déjà Vu?
While the initial Trump-driven crypto rally was partially speculative and followed by a healthy correction, the underlying optimism remains intact. The fast rebound of Bitcoin, continued ETF flows, and evolving political narratives all point to sustained interest and long-term potential.
Whether Trump’s presidency proves to be “golden” for crypto or merely a short-lived bull catalyst will depend on actual policy follow-through. However, the shift in tone and strategic positioning has already marked a new chapter in crypto’s journey toward mainstream legitimacy.
Author:
Mehrullah Jamali
Crypto & Capital Markets Analyst | Founder, MJ Capital Markets &MJ Forex Academy