As Donald Trump returns to the presidency in 2025, the United States has once again become the epicenter of the cryptocurrency market, driven by his commitment to placing the country at the center of the cryptocurrency industry. According to a Bloomberg According to the report, this change not only boosted trading volumes, but also resulted in a significant return of institutional investors and an increase in liquidity, reversing trends from the previous administration of President Biden, where Asia had momentarily took the lead due to perceived regulatory pressures.
The influence of Trump’s policies is reflected in Bitcoin (BTC-USD) trading patterns, with the United States now accounting for 53% of daily dollar trading – up from 40% in 2021 – according to data from Kaikoas cited by the publication. This increase highlights a return to US dominance in crypto-liquidity, as noted by Thomas Erdösi of CF Benchmarkswho attributes this to growing institutional involvement.
The launch of US Bitcoin ETFs earlier in 2024 was crucial. These ETFs saw extraordinary trading volumes, exceeding $500 billion and attracting net inflows of approximately $36 billion. BlackRock’s iShares Bitcoin Trust stands out as one of the most successful fund launches, signaling strong investor interest. With the Trump administration, there is high expectation that the range of crypto ETFs will diversify beyond Bitcoin and Ether (ETH), potentially fostering a new wave of investment vehicles.
Additionally, the Chicago Mercantile Exchange (CME) saw its Bitcoin and Ether futures contracts reach unprecedented levels of open interest, surpassing previously dominant offshore exchanges like Binance. This development highlights the growing role of the United States in setting benchmarks for cryptocurrency pricing and liquidity.
The rejuvenation of market depth, crucial for handling large transactions without significantly impacting prices, has been another beneficiary of this pro-crypto environment. The report notes that after the disastrous collapse of FTX and Alameda Research in 2022, which significantly reduced liquidity, US ETFs and Trump’s favorable stance have significantly narrowed the so-called “difference gap”. ‘Alameda’, returning market depth to pre-crisis levels. .
This resurgence isn’t just about numbers; this represents a broader acceptance and integration of cryptocurrencies into the traditional financial landscape under the Trump administration. With potentially more defined or relaxed regulatory frameworks, the United States may be able to lead in crypto innovation, investment, and regulation, strengthening its position in the global crypto market. However, the sustainability of this growth will depend on how these policies are implemented and the extent to which they align with global standards and investor expectations.
Reference: Bberg
