Crypto market rallies in Trump’s 2nd term

By Bahar Yakar, Burhan Sansarlioglu, and Emir Yildirim

ISTANBUL (AA) — The cryptocurrency market has gained traction in US President Donald Trump’s second term, as his stance on digital assets has shifted significantly from his first time in office to a more supportive, pro-crypto position.

Trump has pledged to make Bitcoin a reserve asset and to eliminate legal barriers in the cryptocurrency sector in his second term, which has helped fuel a market boom.

During his first term, Trump had criticized cryptocurrencies like Bitcoin, calling them volatile and a gateway to illegal activity. He previously stated the US dollar was the country’s sole true currency.

However, Trump reversed his tone on the 2024 campaign trail. In May 2024, he announced he would begin accepting crypto donations and subsequently received support from industry representatives.
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In June 2024, Trump attended a fundraising event hosted by South African billionaire David Sacks, who later became his appointed “AI and crypto czar.”

In July, Trump’s statements at the Bitcoin 2024 Conference in Nashville, Tennessee, marked a stark difference from his first-term stance when it comes to cryptocurrencies.

“And if Bitcoin is going to the moon, I want America to be the nation that leads the way, and that’s what's going to happen,” he said. “I’m laying out my plan to ensure that the United States will be the crypto capital of the planet and the Bitcoin superpower of the world.”

He promised to create a strategic Bitcoin reserve and said he would remove Securities and Exchange Commission Chairman Gary Gensler from office, as Gensler took a tough stance against cryptocurrencies.

The president also said he would establish an advisory council to create a transparent regulatory framework for Bitcoin and other digital assets.

In September 2024, one day after surviving an assassination attempt, Trump went on a live broadcast to unveil his crypto venture, World Liberty Financing.

In December 2024, he launched an NFT card collection, officially entering the digital asset space.

Just days before Trump returned to office on Jan. 20, two meme coins—“Official Trump” and “Official Melania”—were launched.

After his inauguration, Trump formed a pro-crypto economic administration and signed an executive order to establish the promised strategic Bitcoin reserve.

The White House hosted its first-ever crypto summit in March, during which Trump said his administration is working to make the US “the Bitcoin superpower.” The summit was attended by David Sacks, Treasury Secretary Scott Bessent, and leading figures from the sector.

Trump also brought together the people who invested the most in his meme coin at a private event in May. The private guests reportedly bought a total of $148 million worth of tokens just to attend the event.

Later that month, Trump Media & Technology Group, the parent company of his Truth Social platform, announced it had signed subscription agreements with around 50 institutional investors. The deal includes plans to raise $2.5 billion through $1.5 billion in stock sales and $1 billion in convertible bonds.

The company planned to use the fund to create a Bitcoin reserve, saying it would be one of the largest Bitcoin treasury agreements with publicly traded firms.

In June, Trump’s social media firm, Truth Social, filed an application with the Securities and Exchange Commission for a Bitcoin and Ethereum exchange-traded fund (ETF), as the company aimed to directly hold 75% of its assets in Bitcoin and 25% in Ethereum.

Crypto.com will serve as the ETF’s exclusive Bitcoin and Ethereum custodian, prime execution agent, staking provider, and liquidity provider, as per the company’s statement.

The social media platform said that the launch of the “Truth Social Bitcoin and Ethereum ETF” depends on the entry into force of the registration statement and the approval of the company’s rule change application by the Securities and Exchange Commission, and that shares of the ETF will start trading on the NYSE Arca stock exchange after the introduction.

Bitcoin reached a record high of $111,900 during the year after Trump’s inauguration and the establishment of the strategic Bitcoin reserve, while gaining 15% since the beginning of the year so far, stabilizing above $107,500.

Uraz Cay, international markets strategist at Türkiye-based AK Investment, told Anadolu that the Republican Party’s warm approach to new technologies is playing a key role in these developments.

“The Republican Party’s understanding that stablecoins are important as a bridge between traditional and modern finance shapes the bigger picture (rather than) Trump’s statements alone,” he said.

Cay stated that the Tether and Circle Treasury securities in the US are more than those held in Germany.

He added that the most significant development was the creation of a new position in the White House, which is dedicated entirely to cryptocurrencies and artificial intelligence (AI).