Trump’s victory is pushing Bitcoin to new heights, but the risk of a massive collapse grows.
After Donald Trump’s election win,$BTC in surged past $105,000, and Wall Street now sees cryptocurrencies as the new gold rush. At first glance, this might seem like a perfect scenario, but the reality is much darker.
Crypto Becomes Part of the System
Thanks to Trump’s approach, cryptocurrencies are infiltrating places where they never belonged – banks, pension funds, and financial markets. This may sound great for investors, but crypto is losing its rebellious nature. Being embraced by the system means the market faces greater risks, and if Bitcoin falls, it will be a catastrophe the world has never seen.
At the July Bitcoin conference, Trump introduced a shocking plan – a strategic national Bitcoin reserve. The goal? To accumulate $15 trillion in Bitcoin. While the idea sounds crazy, it has a real chance of happening.
Politics Over Regulation
Even before the election, Bitcoin ETFs from BlackRock and other financial giants opened the floodgates. These ETFs allow everyday investors to buy Bitcoin, making cryptocurrencies a part of traditional finance – but without proper safeguards and controls.
Meanwhile, Trump’s crypto team is working on loosening regulations. Paul Atkins, a critic of financial oversight, is Trump’s choice to lead the SEC. Under his leadership, the crypto industry would face less scrutiny. Additionally, Congress plans to shift oversight of cryptocurrencies to the CFTC, a less-funded and less-experienced regulator. This will create regulatory chaos, something the industry welcomes.
Consumer Protections Under Threat
Trump’s allies are also targeting the CFPB – the agency that protects consumers from financial fraud. Marc Andreessen and Elon Musk have both called for its elimination, paving the way for crypto platforms to operate without restrictions. If this happens, situations like the collapse of fintech company Synapse, which left tens of thousands of users stranded, will become more frequent and severe.
Banks and Pension Funds Are Playing with Fire
During the 2022 crypto crash, banks and pension funds were relatively insulated. This time will be different. The approval of Bitcoin ETFs has led banks and pension managers to include cryptocurrencies in their portfolios.
If Trump dismantles SEC protections and allows banks full exposure to crypto, the financial system will become extremely vulnerable. Trump’s World Liberty Financial platform, which is already making massive crypto acquisitions, further heightens the risk.
Endgame: A Collapse Is Inevitable
History repeats itself. FTX founder Sam Bankman-Fried promised self-regulation and innovation before his platform exploded, evaporating billions overnight. The crypto industry hasn’t changed – it’s still lobbying against regulations and now has Trump in its corner.
Every bull run ends with a collapse. The difference is that this time, Bitcoin is too big to fail. If crypto crashes under Trump’s leadership, it won’t just hurt small investors – it will impact global economies, banks, and pension funds.
As Trump takes office, the countdown begins. And the end could be worse than anyone imagines.
#donaldtrump , #Debate2024 s , #BTC☀️ , #CryptocurrencyNews
Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
