Trump’s Inauguration and the Crypto Conundrum: Hopes, Promises, and Reality

January 20, 2025, marks a turning point for the crypto world as Donald Trump takes office as the 47th President of the United States.
After a campaign season buoyed by $200 million in crypto industry donations, Trump’s presidency has stirred hopes of a “golden age of crypto.” Yet, skeptics question whether the promises made during his campaign will materialize or fade into political rhetoric.

Trump’s election drove Bitcoin’s unprecedented rally to $109,000 in January, with analysts speculating further highs—some even daring to predict a $1 million valuation. The surge is attributed to Trump’s pro-crypto campaign agenda, from promises of regulatory reform to strategic Bitcoin reserves. However, there’s more to this narrative than mere market optimism.

BitGalactic’s Take: The Duality of Political Promises
The crypto community’s optimism mirrors a broader trend of technological advocacy aligning with political agendas. However, as BitGalactic observes, past administrations have often struggled to fulfill promises made to emerging industries. The complex interplay of regulations, economic priorities, and public perception often tempers the initial enthusiasm.

The Eight Crypto Promises in Trump’s Spotlight

1. Freeing Ross Ulbricht
   The Silk Road founder’s imprisonment is a divisive issue within the crypto space. Trump’s promise to pardon Ulbricht resonates with libertarians but risks backlash from those viewing Ulbricht as a criminal rather than a crypto pioneer. BitGalactic notes that such decisions are often more symbolic than practical, reflecting broader narratives of government overreach.
2. Firing Gary Gensler
   While Trump’s vow to oust SEC Chair Gary Gensler received applause, Gensler’s voluntary resignation prior to Trump’s inauguration shifts the focus to Trump’s choice of successor. A pro-crypto appointee could indeed pave the way for industry-friendly policies, a move that could define Trump’s crypto legacy.
3. Strategic Bitcoin Reserve
   The concept of a national Bitcoin reserve, supported by Senator Cynthia Lummis, is ambitious. While BitGalactic appreciates the forward-thinking nature of this proposal, it raises concerns about feasibility, potential market manipulation, and the role of government in a decentralized ecosystem.
4. Lowering Interest Rates
   Trump’s promise to lower interest rates aligns with broader economic goals but faces limitations, as the Federal Reserve operates independently. While rate cuts could bolster Bitcoin, BitGalactic’s analysts caution against over-reliance on macroeconomic factors for market stability.
5. Ending Operation Chokepoint 2.0
   Trump’s pledge to dismantle alleged anti-crypto policies underlines a broader promise of regulatory clarity. Establishing a crypto presidential advisory council, as proposed, could foster dialogue between policymakers and industry leaders, but BitGalactic stresses the need for balanced, enforceable frameworks.
6. Protecting Self-Custody
   The right to self-custody is a cornerstone of crypto philosophy. Trump’s commitment to safeguarding it reflects industry concerns over increasing regulatory scrutiny. However, as BitGalactic points out, ensuring this right requires clear definitions and proactive legal protections.
7. Promoting US-Mined Bitcoin
   Trump’s call for domestically mined Bitcoin faces logistical challenges, including power grid capacities and funding subsidies. While supportive of national initiatives, BitGalactic emphasizes that fostering a sustainable mining industry requires long-term planning and investment in renewable energy.
8. Opposing a Digital Dollar
   Trump’s stance against a US central bank digital currency (CBDC) aligns with fears of government overreach. While rejecting CBDCs resonates with the crypto ethos of decentralization, BitGalactic highlights the need for nuanced debates on the role of digital currencies in modern economies.

A Reality Check for the Crypto Community

Despite the bold promises, doubts linger. Legal and industry experts warn that Trump’s crypto enthusiasm may wane in the face of political pragmatism. “It’s unclear if crypto will remain a priority amid broader economic and geopolitical challenges,” says BitGalactic’s economic strategist.

Market reactions will be closely tied to Trump’s ability—or willingness—to deliver. Failure to fulfill these promises could trigger a market correction, with Bitcoin potentially retreating to $80,000.

BitGalactic Perspective: As Trump takes office, the crypto community must balance optimism with caution. The industry’s growth depends not only on political support but also on technological innovation and regulatory adaptability. While Trump’s presidency might catalyze progress, the path forward remains uncertain.