The adoption of the crypto is accelerating under the Trump administration. The United States has become a central force in the formation of the cryptography market, both from the point of view of regulations and macroeconomics. The cryptography market began to move with the American stock markets, reflecting increasing institutional participation and sensitivity to macroeconomic conditions. In his latest report, HTX Ventures reviews the implementation of President Donald Trump’s cryptographic policies, the current liquidity of the US dollar and its effect on cryptographic markets.
Find out more about the Trump’s policies executions and the growth catalysts of the cryptography market, download the full report here
How the regulations are to reshape cycles of the cryptography market
Legalization and dollarization are the rear winds of this determining cycle of this cycle. Bitcoin is the main beneficiary, acting as a bridge for American institutional capital through FNB, which solidifies the long-term legitimacy of the crypto-state industry. In the United States, the process of adopting cryptography should generate a continuous flow of positive news and regulatory developments.
The evolution of American crypto policy will probably extend over the entire second term Trump. The proposals to finance the purchase of large -scale bitcoins, similar to the accumulation of gold during the great depression, will require budgetary maneuvers. These measures may even include negative engineering GDP to justify the monetary stimulus, as happened in previous cycles, including 2008, 2020 and other periods of economic stress. The United States has not yet allocated an official budget to sovereign Bitcoin purchases.
Find out more about the Trump’s policies executions and the growth catalysts of the cryptography market, download the full report here
How the Bitcoin strategic reserve could change everything
Unlike previous cycles powered by catalysts such as ICO boom in 2017 or summer DEFI 2020, the current cycle is motivated by a change in regulation, including the supporting position of the dry on the crypto and the proposed Bitcoin Strategic Reserve.
The cryptography market is increasingly aligned with global macro-tendencies, reflecting technological actions in their longer and more stable cycles. In the current cycle, Bitcoin has a stronger correlation with traditional financial markets, as well as abnormally low volatility.
Institutional investors have now become the main engines of Bitcoin price movements. This can be demonstrated by an open interest in term contracts on CME Bitcoin, which increased from less than $ 4 billion before ETF approval at a coherent level above $ 10 billion, with peaks above $ 20 billion.
However, the open interests of CME can be inflated by institutional investors, who use the lever effect to take advantage of the difference between punctual ETFs and term contracts when the base exceeds the yield of the American treasury. If these basic arbitration positions are unrolled on a large scale, they could trigger net price reductions thanks to ETF outputs.
The execution of Trump’s crypto policy
The recent policies implemented within the framework of the Trump administration have accelerated the institutionalization of cryptocurrencies. The repeal of SAB 121 has enabled traditional financial institutions to offer childcare services for cryptographic assets. As such, Citibank actively explores the opportunity to add the guard of cryptography, while Jpmorgan Chase plans to offer cryptographic investments to its customers through a third -party goalkeeper.
The FIT21 bill and executive actions around the stablecoins also laid the foundations for long -term regulatory clarity. Fit21, although not yet enacted, defines the direction of the classification of digital assets. He divides them between the dry and the CFTC, according to the level of decentralization: the highly decentralized tokens fall under the CFTC, while more centralized assets remain under the supervision of the dry.
Future prospects indicate even more favorable regulatory developments for cryptographic industry. Although the American Bitcoin Strategic Reserve has recently been established, Bitcoin’s active purchases have not yet started, which suggests that a key growth catalyst could still be ahead.
In parallel, stable legislation should progress quickly. The proposed Genius Act aims to create a complete regulatory framework for the stables -coated in dollars, providing a legitimate entry point for banks, payment processors and companies. The Trump administration has already supported the initiative to allow commercial banks to hold or issue stablecoins during its first mandate.
Find out more about the Trump’s policies executions and the growth catalysts of the cryptography market, download the full report here
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