What’s Next for Crypto Under Trump? AI & Crypto Experts Weigh In
In Brief
Trump’s inauguration is causing a surge in Bitcoin value, with analysts predicting a surge in value due to his promised “crypto government.”
With the highly anticipated swearing-in of Donald Trump as the 47th president of the United States just days away, all eyes are on Bitcoin, with some analysts predicting a potential surge in its value.
While most focus on the promised “crypto government” of Trump, some are curious about the short-term impact of his inauguration.
Bitcoin Almost at $109K On Inauguration Day
As the world watched the swearing-in of Donald Trump on January 20, 2025, Bitcoin demonstrated remarkable resilience, soaring to new heights. Hours before the inauguration, the digital currency touched an all-time high, reaching an ATH of $108,786 after hovering around $103,000. This surge reflected growing optimism in anticipation of a potential crypto-friendly administration.
Trump’s pro-crypto stance and policies are seen as catalysts for this upward momentum. His election has already prompted a noticeable migration of crypto entrepreneurs back to the U.S. following years of regulatory challenges abroad. Should Trump’s promises hold true, the U.S. could become a global hub for cryptocurrency innovation, with many in the crypto community eagerly anticipating an executive order or the creation of a national Bitcoin reserve.
A Steep Fall to $93,000
As a global trade war loomed, Bitcoin and other major cryptocurrencies took a sharp dive.
The market was rattled by fears of rising tensions, pushing many investors to retreat from riskier assets. Bitcoin, which had been sitting comfortably at higher values, dropped to a low of $92,584 on February 3.
Ethereum also took a hit, plummeting over 15.5% in the last 7 days, which brought it back to levels unseen since early September, valued at $2,326.
The downturn was sparked by President Trump’s announcement of new tariffs: 25% on imports from Mexico and Canada and 10% on goods from China. This led to retaliatory threats from both Canada and Mexico, while China signaled it would challenge the tariffs at the World Trade Organization.
Analysts noted the market’s significant sell-off, with CoinSwitch Markets Desk mentioning that the tariffs triggered over $2 billion in liquidations.
Avinash Shekhar, Co-Founder and CEO of Pi42 emphasized that the future of digital assets relies on “macroeconomic factors” and investor confidence.
Pro-Crypto Cabinet Under Trump
Trump’s early moves to appoint leaders who align with pro-crypto policies have caught the attention of the digital asset community. Paul Atkins, a former SEC official known for his deregulatory stance, has been selected to lead the Securities and Exchange Commission (SEC), a choice that many interpret as a signal for a more crypto-friendly regulatory environment.
Meanwhile, David Sacks, an ex-PayPal executive, has been tapped as the White House’s crypto czar. His role will focus on crafting a legal framework for cryptocurrencies, an initiative the industry has long sought.
Additionally, Trump has launched a new Department of Government Efficiency, led by notable figures like Elon Musk and Vivek Ramaswamy.
The department’s goal is to spur innovation and cut government spending, potentially opening more doors for the crypto sector. The SEC’s new leadership has wasted no time, announcing the formation of a task force to develop a regulatory framework for digital assets.
As Paul Grewal, Chief Legal Officer at Coinbase, remarked, the administration has moved swiftly on its agenda, showing a clear understanding of the crypto space. However, some experts caution that market volatility could persist until concrete policies are unveiled.
Experts Weigh In
Market experts are optimistic about the future of digital assets under Trump’s leadership. Xremlin, a noted market analyst, suggests that this could mark a “golden era,” with U.S.-based coins and assets linked to the Trump family potentially seeing significant growth.
Eric Trump’s investments in Bitcoin, Ethereum, Solana, and Sui indicate confidence in established cryptocurrencies, which could encourage others to follow. Speculation surrounds Trump’s inauguration speech, with some predicting Bitcoin could surge to $120,000 or higher in the near future.
ChatGPT & Grok’s Take
We utilized the advanced capabilities of OpenAI’s ChatGPT 4.0 and X’s Grok 2t, asking them to speculate on Bitcoin’s (BTC) price trajectory for the year following Trump’s inauguration.
The prompt for this exercise was designed to gather their predictions and insights regarding the potential impact of Trump’s leadership on the cryptocurrency market.
The Prompt:
Assess Bitcoin’s potential price trajectory following Donald Trump’s inauguration on Monday, January 20, 2025. As a leading expert in Bitcoin and digital currencies, analyze how this political shift could impact market sentiment, regulations, and institutional interest. Given Bitcoin’s current price of $95,000 on February 3, 2025, predict its valuation post-inauguration and offer a concise rationale for your prediction. What is your anticipated U.S. dollar valuation for Bitcoin in 2025?
Chatgpt 4o’s Response
Following President Donald Trump’s inauguration on January 20, 2025, Bitcoin’s price trajectory has been influenced by several factors. The administration’s pro-crypto stance, including the appointment of David Sacks as the AI and crypto czar, has fostered optimism in the market. However, recent tariff implementations have introduced economic uncertainties, leading to increased market volatility. Given these dynamics, I anticipate Bitcoin’s valuation will experience fluctuations in the near term, with potential for growth as regulatory clarity and institutional adoption progress. By the end of 2025, Bitcoin could reach valuations between $150,000 and $250,000, driven by favorable regulations and increased institutional investment.
Grok’s Response
Donald Trump’s inauguration on January 20, 2025, has introduced a pro-crypto stance, potentially leading to favorable regulations like reduced SEC scrutiny and the establishment of a strategic Bitcoin reserve, which could significantly enhance institutional interest. The crypto community anticipates these changes could spur a bullish market sentiment, evidenced by Bitcoin’s surge to over $100,000 before a slight dip due to lack of immediate policy announcements. Given the current price of $93,000, Bitcoin might see a valuation of $120,000 to $150,000 in 2025, reflecting optimism around policy shifts, increased adoption, and the halving’s supply constraint.
Up or Down? Bitcoin’s Fate Under Trump’s Reign
There’s no doubt that, on some level, Bitcoin’s fate in 2025 hinges on the evolving political landscape.
While Trump has promised to bring in a more crypto-positive attitude, we still need to watch for global tensions, inherent market volatility, and the possible roadblocks in the road to delivering on those promises.
Geopolitical events like the tariffs have rattled Bitcoin’s stellar form in recent days, but many predict that the growing institutional investment and new pro-crypto policies will once again turn the tides in the crypto market’s favor.
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About The Author
Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
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Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
