Donald Trump's actions have a significant impact on the crypto market, influencing legislation, monetary policy, and geopolitics.
The Trump Crypto Effect is analyzed in terms of internal wars (domestic policies, institutional conflicts) and external wars (global tensions, international policy).
Internal War: Trump opposes rate cuts by the Federal Reserve, supports the GENIUS Act for stablecoin regulation, influencing trust in fiat institutions and favoring Bitcoin and USD-backed stablecoins.
External War: Trump's foreign policy, like conflict in the Middle East and tariff disputes with China and the EU, affect crypto demand as a hedge, leading to market fear and short-term volatility.
The announcement of a TRUMP-branded phone could impact the $TRUMP token, potentially driving meme rallies and attention to Solana if utilized as the base blockchain.
Internal conflicts have lasting effects on crypto regulation and market structure, while external conflicts create short-term volatility but can strengthen Bitcoin in the long run.
Traders should monitor both internal and external factors, with external chaos potentially benefiting long-term holders and internal conflicts reshaping crypto usage in the U.S.