Donald Trumpās āAmerica Firstā in Crypto ā Why Markets Arenāt Rallying Yet
Donald Trump is now positioning himself as pro-crypto, with an approach many are calling āAmerica First in Crypto.ā But despite the headlines, crypto markets havenāt seen the kind of rally you might expect. Why?
Trump views crypto as a national advantageānot a threat. The key pillars of his crypto-friendly pivot include:
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Pushing back against CBDCs (Central Bank Digital Currencies), calling them a threat to personal freedom.
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Criticizing the SECās regulatory crackdown on crypto companies and tokens.
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Framing crypto innovation as a matter of national competitiveness, especially against China.
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Calling for crypto to remain in the U.S., aligning with his āAmerica Firstā ethos of tech leadership and economic sovereignty.
But why isnāt the market reacting?
Despite the shift in tone, crypto prices havenāt moved significantly. Here are three key reasons:
1. Uncertainty > Optimism
Markets care about what will happen, not just whatās said. Trumpās pro-crypto rhetoric isnāt enough. His previous actions (e.g.,
$TRUMP tokens, Musk-DOGE hype) have eroded trust in
#Web3 leadership rather than strengthened it.
2. Support for Blue-Chip Assets Only
Trumpās backing seems limited to blue-chip crypto like BTC and possibly ETH. Thereās no real support for broader innovationāat least not yet.
3. Macro Factors Are Dominating
Trumpās economic positioning raises concerns over inflation, high interest rates, and tight liquidityāmacro conditions that weigh down the entire market, crypto included.
My final thoughts?
Trumpās pivot to pro-crypto rhetoric is a net positive. However, in practice, it reinforces existing market power rather than encourage innovation. For Web3 builders and startups, thatās not the kind of support we need.