- Prospects of US Bitcoin reserve and a pro-crypto Trump boost sentiment.
- BTC, ETH surged over 35% since Trump's win amid high US ETF inflows.
- Bitcoin’s market cap has surpassed that of Silver.
Commentary: Pro-Crypto Shifts in Trump's Era
The US is set to see a more crypto-friendly administration under Trump, who has reversed from his cautious stance to now embracing the industry. Potential policy moves under Trump includes: 1/ setting up a Bitcoin strategic reserve by acquiring up to 1m BTC (5% of total supply) over 20 years, which encourages wider institutional adoption, and 2/ appointing a crypto advisory council as Trump promised back in July. The Council will be tasked to design transparent regulatory guidance within 100 days from his inauguration.
Furthermore, the appointment of pro-crypto officials by Trump is starting. SEC Chair Gary Gensler, who has overseen many regulatory actions against the crypto industry, had announced that he will step down from his position on 20 Jan, which is Trump’s inauguration day. Trump has publicly called for his removal previously. US crypto firms should face lesser risks of SEC enforcement actions going forward, and their representation in the advisory council could see them gain influence over upcoming US crypto policies. Trump’s Treasury Secretary nominee, Scott Bessent, is also an active investor in blockchain and DeFi startups.
Positivity around prospects of pro-crypto US policies has reignited sentiment towards crypto, leading to huge inflows into BTC and ETH ETFs amounting to USD5.7bn and USD0.6bn respectively. They drove a surge in BTC and ETH prices by 37% and 47% in Nov. Bitcoin market cap has reached USD1.9trn, surpassing Silver to become the 7th largest asset class in markets.
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