Donald Trump’s presidency is expected to usher in significant growth for the cryptocurrency market, according to Coinbase CEO Brian Armstrong. During a panel discussion at the World Economic Forum in Davos, Switzerland, Armstrong expressed optimism about the possible influx of investments into digital assets under the Trump administration.
“The Trump effect is real,” Armstrong said, as reported by Reuters. “For the leader of the world’s largest economy to publicly declare his intention to be a pro-crypto president sends a powerful message.”
Armstrong also linked Bitcoin’s recent rise to Trump’s inauguration as the 47th president. On Monday, Bitcoin hit an all-time high of $109,000, boosted by renewed enthusiasm among investors. However, the rally was short-lived as Bitcoin fell almost 3% on Tuesday morning to trade around $104,000. The drop reflected disappointment over the president’s lack of immediate action on crypto initiatives.
The overall global cryptocurrency market has also faced a slowdown, with the total market capitalization falling more than 2% to $3.58 trillion in the past day, led by the decline of Bitcoin.
A major point of contention was Trump’s failure to establish a national Bitcoin reserve on his first day in office, a move that some cryptocurrency enthusiasts had hoped for. Alexander Blume, CEO of Two Prime, noted that such delays could spark a backlash from the crypto community. However, Blume added that a supportive regulatory environment could still pave the way for broader adoption of Bitcoin and other digital assets.
In a development likely to please cryptocurrency advocates, Securities and Exchange Commission (SEC) Chairman Gary Gensler officially resigned on Monday. Known for his strict stance on cryptocurrencies, Gensler had led several high-profile cases against major industry players, including Coinbase and Binance. Under his leadership, 18% of SEC complaints targeted cryptocurrency-related companies.
With Gensler’s resignation, Paul Atkins, Trump’s nominee for SEC chairman, is set to take over, pending Senate confirmation. Atkins is seen as a more cryptocurrency-friendly figure, raising hopes for a regulatory framework that encourages growth and innovation in the sector.
As the Trump administration progresses, the cryptocurrency industry remains eager to see how the president’s pro-crypto stance translates into concrete policy changes that could further boost market momentum.
Also read: Bitcoin Price Falls During Trump Inauguration Day