Trump’s cryptocurrency sees 70% value of value after the VIP dinner supply
The value of Trump’s memes play has seen a huge increase in value while it is preparing to organize two special events for its main investors. The crypto Coinbase trading platform revealed that “$ Trump” climbed after 220 of its greatest holders will be invited to a private gala dinner on May 22.
without brand – worthy of interest
Despite the fact that cryptocurrencies play very little role in the reflux and the flow of global trade, the prices have the potential to disturb them deeply. This is because capital, debt and cryptographic markets are more interconnected than many people could assume.
Already, volatility has increased and the prices of cryptography are down almost in all areas, due to tariff uncertainty. So what factors will have the greatest impact on your cryptography portfolio in 2025?
Feeling of investor
Let’s start with the feeling of investors, because it is an easy to quantify factor. Currently, the Crypto Fear & Greed index is at 29 years old, indicating that investors are relatively afraid. The index is measured on a scale of 0 to 100, 100 being extremely euphoric.
This Fear & Greed index briefly dropped below 20 in March and April, due to all the concerns about prices. So, the good news, if you want to call it like this, is that investors seem to calm down a little.
But here is the problem: in the current environment, there is no appetite to buy pieces of speculative memes or risky altcoins. And that, unfortunately, means that the “Altcoin season” – the moment of the year when altcoins become parabolic – may not come this year.
Historically, Ethereum (Crypto: ETH) Was the cryptocurrency that starts the start of the Altcoin season. And guess what? Ethereum is down 53% for the year and 16% in the last 30 days. Without Ethereum, there will be no Altcoin season.
Instead, investors will be much more likely to move their money in Bitcoin (Crypto: BTC)which has often been called digital gold. Although it is always questionable that Bitcoin can act as a long-term value store, it seems to resist this price better than other cryptocurrencies.
Cryptography assessments linked to macroeconomic perspectives
At the same time, investors think back the way they appreciate cryptocurrencies. During the bull market cycles, investors focus on variables related to blockchain growth – such as increases in new users, winnings of blockchain transaction activity or rapid technical performance improvements. But during the lowering market cycles, the development moves to fiscal policy, monetary policy and macroeconomic data.
Consequently, cryptographic investors are strongly interested in macroeconomic data which could offer indices on inflation and where the economy could be directed. They are particularly focused on the potential movements of the American federal reserve. Indeed, interest rate reductions are perceived as being very optimistic for crypto.
In the past, this concentration on global macroeconomic perspectives was not so much the case for the cryptography market. Crypto was not correlated with all major financial assets, and no matter what was going on in Wall Street or Washington, DC until recently, institutional investors played very little on the cryptography market, and politicians have not paid almost any attention to crypto.
But all of this changed in January 2024 with the introduction of FNB funds negotiated in exchange for Bitcoin Spot. Now, the same people who buy technological actions buy Bitcoin FNB, which means that they are considering the same economic figures. No wonder the correlations between technological actions and cryptos are tightening. For a large part of 2025, Bitcoin behaved like a very expensive and volatile technological stock.
Crypto as a strategic asset for sovereign governments
If the trade war is intensifying, it is possible that sovereign governments around the world begin to consider the crypto as a strategic asset which can help them achieve certain economic objectives. After all, they could be forced to take drastic measures if exports dry, or if economic growth stops. And crypto could give them a very unique strategy option.
Take, for example, the Bitcoin Strategic Reserve, which the White House Trump described in March. Current thinking is that Bitcoin is a strategic asset, similar to gold or oil, that the government should store. In a scenario that has already been proposed by legislators, these Bitcoin reserves could one day be used to help repay the debt of 37 billions of government dollars.
In addition, the secretary of the Treasury Scott Bessent did not hide the fact that the stablecoins – the digital dollars of the world of cryptography – could be used to achieve certain monetary objectives. Indeed, the stablecoins are set from 1 to 1 to the US dollar and are supported by equivalents in cash and cash, including short -term cash bills.
These cash titles create all kinds of new links between the bond market and the cryptography market. For example, some have suggested that stablecoins have the potential to advance yields on the debt of the American treasury, thus reducing the government’s interests on its debt.
What cryptos to buy now
So assembling all this, the perfect crypto to buy would be the one that (1) is considered a safe asset and a long -term value store, (2) can surpass technological actions, and (3) has the tacit support of sovereign governments.
From my point of view, all this indicates that Bitcoin is the only crypto that you should buy now. Although Bitcoin is far from being a Slam-Dunk investment, there is no other crypto that I prefer to hold if Trump’s prices turn into a full-fledged trade war.
Dominic Basulto has positions in Bitcoin and Ethereum. The Motley Fool has positions and recommends Bitcoin and Ethereum. The Motley Fool has a policy of disclosure.
The Motley Fool is a USA Today content partner offering financial news, analyzes and comments designed to help people take control of their financial life. Its content is produced independently of USA Today.
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