Donald Trump and His Influence on Crypto Markets

Donald Trump continues to flex his influence on the crypto markets as America’s “first crypto president,” recently reversing signs of a bear market with his announcements.

It was a pleasant shock to the whole ecosystem when the president revealed in a post on Truth Social that his January executive order on digital assets will lead to the US creating a stockpile of currencies. His initial announcement mentioned Ripple, Solana, and Cardano—names previously unannounced—before adding that BTC and ETH would also make the cut.

Crypto natives anticipated that President Trump was finished with announcements, but noticed that Tron (TRX) was notably absent, despite its founder Justin Sun having invested $75 million in World Liberty Financial (WLF), a Trump-backed venture.

TRX Excluded from Strategic Reserve

One of Trump’s strengths as a politician is his ability to make people chase after him, and he has definitely caught the attention of crypto founders. Many expected him to create a committee for overseeing the country’s crypto involvement and a reserve, both of which he has announced.

Tron made significant efforts to prove its relevance, from Sun’s $75 million investment to his advisory role at WLF, which reportedly holds about $9 million in TRX tokens. Despite such strong ties, TRX was not included in the strategic reserve announcement, leading to disappointment but not despair for Sun.

Justin Sun’s Continued Support

All the tokens mentioned in Trump’s post surged in value post-announcement. BTC reached $95,000, ETH jumped to $2,550, SOL hit $180, ADA went to $1.18, and XRP rose to $3. TRX, however, missed this opportunity.

Still, Sun expressed unwavering support for Trump and his crypto strategy, tweeting praise and sharing user speculation that TRX may eventually be added to the reserve.

Industry Response to Trump’s Announcement

Following Trump’s announcement, the total cryptocurrency market rose by over $300 billion, signaling a potential shift towards U.S. government involvement in the crypto economy.

Federico Brokate, head of US business at 21Shares, noted that this move could accelerate institutional adoption and enhance regulatory clarity. However, some industry figures like James Butterfill argue that only Bitcoin should be included in the reserve, questioning the suitability of other assets.

Tyler Winklevoss echoed this sentiment, asserting that only Bitcoin meets the standards for a strategic crypto reserve. The debate continues on whether congressional action will be required to establish the reserve, along with the origins of the cryptocurrencies for it, whether from seized assets or the Exchange Stabilization Fund.