Trump's strategic cryptocurrency moves, Will it become a catalyst for Bitcoin's bull market?

Directly, and indirectly paving the way for Bitcoin's bull market, President Trump (Source: The Block)

An analysis has emerged that President Donald Trump's policy stance could provide new momentum to the Bitcoin market. Yahoo Finance recently reported that two policies of the Trump administration could lead to a bull market for Bitcoin.

The first is the 'Strategic Cryptocurrency Reserve Plan' announced on March 3. This plan involves the government not selling but directly holding cryptocurrencies seized from crime proceeds and officially classifies Bitcoin, Ethereum, Ripple, Solana, and Cardano as strategic assets. This is considered a symbolic step that acknowledges cryptocurrencies as national assets, enhancing their status within the institutional framework.

The second is a large-scale tariff imposition carried out in early April. President Trump announced the most stringent import tariff policy in U.S. history, which was intended to induce a strong dollar but produced the opposite result. After the announcement, the dollar index fell by about 1.8%, and the cumulative decline since the beginning of the year amounts to 5.5%. When the dollar weakens, investors tend to focus on alternative assets like gold or Bitcoin to preserve asset value.

Yahoo Finance diagnosed that these two policies could act together to drive the expansion of Bitcoin demand. In particular, the government's official recognition of cryptocurrency as a holding asset could become a catalyst for institutional investors' entry, creating the demand conditions necessary for Bitcoin price increases.

President Trump's movements have a significance beyond mere policy. They incorporate cryptocurrencies into the institutional framework, grant legitimacy as an alternative investment, and expand the potential for Bitcoin to be chosen whenever the dollar-based system's instability is revealed.

Consequently, the Trump administration's cryptocurrency policy direction can significantly elevate the market status of Bitcoin and other digital assets and can be interpreted as a harbinger of a new bull market.