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Bitcoin in the Trump Era: Potential Profit or Big Bubble?

In the crypto world, narratives have great leverage to influence prices and strengthen crypto adoption, currently one of the big figures who is always associated with the crypto world is President Donald Trump. Moreover, in his speech, in New York City on Thursday (3/20/2025), Trump stated that he would make the United States a Bitcoin Superpower and the world's crypto capital, so we can be sure that Trump has a very big influence on Bitcoin/crypto both in terms of market sentiment and policy.

Bitcoin and Narrative
Based on the information I have obtained, I can conclude that Bitcoin is not just blockchain technology but also arises from a narrative that creates a strong social construction and Bitcoin gets its value from community trust. When fiat money (USD) plummets, Bitcoin is used as a hedge, but when the price of Bitcoin plummets, observers and experts always look for the cause and currently the argument that has emerged is Trump's role in creating market uncertainty such as trade tariff rules against China, Canada and Mexico.

Trump and Positive Sentiment for Bitcoin
Trump, who we know so far is very pro-crypto, will influence other countries such as Abu Dhabi and Saudi Arabia to be more active in buying Bitcoin and will most likely influence other countries to immediately adopt Bitcoin.

The closer the relationship between the US government and the crypto market, the development of Bitcoin and other crypto will be influenced by global politics. Trump's policies are often more open and provide a strong push for the crypto world, but sudden changes in policy will affect volatility and become a risk for investors.
 
Bitcoin's potential in the Trump era is a topic of interest, with possible implications for profit and market stability. Here are some key points to consider:

Potential Benefits:

  • Regulatory Clarity: Trump's presidency might bring regulatory changes, potentially increasing clarity for institutional investors and fostering a more favorable environment for cryptocurrency innovation.
  • Pro-Business Ethos: Trump's administration has signaled a pro-business approach, which could lead to reduced regulatory friction and increased adoption of Bitcoin.
  • Federal Bitcoin Reserve: Trump's proposal for a federal Bitcoin reserve could legitimize Bitcoin's role as a global asset and potentially drive adoption.
  • Domestic Energy Production: Trump's support for domestic energy production could lower operational costs for U.S.-based Bitcoin mining operations.

Potential Risks:

  • Overregulation: Greater adoption and legitimization may come with heightened scrutiny, potentially leading to overregulation.
  • Market Volatility: Bitcoin's price could surge due to economic uncertainty, but this also increases the risk of market volatility.
  • Centralization: Trump's policies might lead to centralization, potentially conflicting with Bitcoin's decentralized ethos.

Investor Strategies:

  • Diversification: Maintaining a diversified portfolio with measured Bitcoin exposure can mitigate risks.
  • Monitoring Regulatory Developments: Staying informed about changes in crypto tax laws and reporting requirements is crucial for compliance and optimization.
  • Tracking Market Sentiment: Monitoring metrics like search trends and institutional flows can provide insights into market dynamics ¹.
 

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