Did President Trump Just Launch Another Significant Bullish Catalyst for Cryptocurrencies?
On October 23, President Trump pardoned Changpeng Zhao, founder and former CEO of cryptocurrency exchange Binance. Zhao had pleaded guilty to money laundering charges in 2023 due to failing to comply with anti-money laundering standards with the trading exchange.
While Zhao had already served a four-month prison sentence as of September 2024, the pardon could have significant implications for the broader crypto market. For starters, Binance may now be allowed to return its base of operations to the United States – and there are other reasons to believe the pardon could be a bullish catalyst for the cryptocurrency market in 2026.
Image source: official White House Flickr account; photo by Daniel Torok.
Trump continues to show strong support for the crypto industry
Speaking about the pardon last week, White House press secretary Karoline Leavitt said the prosecution of Zhao was part of a “war on cryptocurrency” by President Joe Biden’s administration. She also declared that “the Biden administration’s war on crypto is over.”
In a message to X, Zhao said he was “deeply grateful” for the pardon and that he and his team would do everything possible to “help make America the crypto capital.” The Binance founder has notably supported crypto companies and initiatives linked to the Trump family in recent months.
Although reactions to the recent pardon may be somewhat divided along political lines, this development appears to be another bullish indicator for the crypto market. The Trump administration has taken significant steps to advance the cryptocurrency industry, and Zhao’s pardon is the latest indication that high levels of support from the executive branch are likely to continue throughout the president’s second term.
Today’s change
(-1.86%) $-2110.64
Current price
$111238.00
Key Data Points
Market capitalization
$2.215 billion
Daily scope
$108201.00 -$113567.00
52 week range
$66853.85 -$126079.89
Volume
72B
Average flight
0
Gross margin
0.00%
Dividend yield
N / A
Along with the news that the United States and China have established a rough framework for key elements of a trade deal ahead of Trump’s meeting with Chinese President Xi Jinping, the news of Zhao’s pardon contributed to the crypto market regaining power after a series of sell-offs. At the time of writing these lines, Bitcoin (BTC 1.86%) is up about 3.5% over the past week. In the meantime, EthereumThe token price of has increased by approximately 5%, and XRP is up an even more impressive 8.5%. THE BNB (BNB 0.32%) the token issued by Binance is up 4% over the entire period.
Of course, there are factors other than support from the Trump administration that will continue to shape valuations in the cryptocurrency market. Geopolitical dynamics, including the relationship between the United States and China, and macroeconomic catalysts, including inflation and interest rates, will likely play a key role in the movement of cryptocurrency prices.
In other words, Trump’s decision is not a clear sign that the crypto market will continue to recover through 2026 – but it does appear to be a bullish development for cryptocurrency holders.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool posts and recommends Bitcoin, Ethereum, and XRP. The Motley Fool has a disclosure policy.
