Cryptocurrencies witnessed significant fluctuations during the election period of former US President Donald Trump, and were clearly affected by the policies and trends that Trump put forward during his presidency.
During Trump's term, there were several factors that contributed to the volatility of the cryptocurrency market, including:
1. Government Statements and Policies: Trump and his administration have taken ambiguous positions on cryptocurrencies. While Trump himself has been vocal about cryptocurrencies, stating that he is not a fan of Bitcoin and that it is a means of manipulation, his administration has not taken significant steps to suppress or strictly regulate the market.
2. Geopolitical Tensions: Trumpâs presidency has been marked by trade tensions, especially with China. This has impacted global markets including cryptocurrencies, with some investors turning to Bitcoin as a safe haven during times of instability.
3. US Elections and Market Volatility: Presidential elections usually lead to volatility in financial markets due to political uncertainty. Cryptocurrencies were no exception, with prices of currencies such as Bitcoin experiencing sharp fluctuations in the months leading up to and following the election.
4. Increased interest from institutional investors: At the end of Trumpâs presidency, more institutional investors began entering the cryptocurrency market, leading to increased trading volume and price volatility.
Overall, the Trump presidency has indirectly affected the cryptocurrency market through economic policies and geopolitical tensions that have led to price fluctuations and greater investor interest in this new market.
