What’s next for Bitcoin and crypto

With Donald Trump set to be inaugurated as President of the United States on Monday, cryptocurrency is an unlikely part of his return to power. The story of his return to the White House cannot be told without acknowledging how digital assets helped boost his political fortunes after his departure in 2021. Since his victory in November, Bitcoin rose from $75,000 to an all-time high at $108,135 on December 17, 2024a jump of 44%.

During his 2024 campaign, Trump made several significant promises to the crypto community. Alexander BlumeThe CEO of Two Prime, an SEC-regulated Registered Investment Advisor specializing in digital asset derivatives, told Quartz in an email that Trump’s initial moves on crypto will be under intense scrutiny in the early days of his return.

Here are three of the big promises that Trump has made to the industry.

Will Trump Create a Bitcoin Reserve?

Speaking at the July 2024 Bitcoin conference, Trump laid out an ambitious vision: establishment of a national Bitcoin reserve. This bold proposal has energized the crypto community.

This promise can backfire if it is not fulfilled immediately. Blume told Quartz in an email that Trump’s actions on the first day could lead to volatility for Bitcoin.

“Either he (Trump) will sign an executive order day one for a strategic bitcoin reserve, or the markets will be disappointed in the short term,” Blume said.

While Trump has yet to provide details or a timeline for this potential reserve, the fact that Bitcoin has become a focal point of his agenda has generated considerable excitement.

Will Trump make the US the cryptomining capital of the world?

In his election speeches, Trump painted a bold vision for the United States as a global hub for cryptocurrency, particularly crypto mining. During his speech at the Bitcoin conference, Trump even compared Bitcoin to the steel industry of a century ago, which once fueled American progress and prosperity. “Bitcoin,” he declared, “is the steel of the future,” and he wants it to be “mined, minted, and manufactured” on American soil.

He met with executives from prominent cryptomining companies last year, listened carefully to their challenges and discuss ways to increase the growth of the industry. This pro-crypto stance sent a wave of optimism through the industry, especially among major crypto mining companies such as MARA Holdings Inc. (formerly Marathon Digital Holdings) (MARA+8.90%) and Riot Platforms (RIOT+0.82%), whose shares soared after Trump’s victory, buoyed by the prospect of a regulatory environment that could make the US a more competitive player in the global crypto landscape.

Will Trump Free Darknet Fraudster Ross Ulbricht?

Trump also promised to reverse the Silk Road’s life sentence mastermind Ross Ulbrichtserving a double life sentence.

Ulbricht founded Silk Road in 2013, a notorious dark web marketplace that facilitated illegal activities such as drug trafficking through Bitcoin transactions. In 2015, Ulbricht was convicted of several crimes, including money laundering, computer hacking and drug trafficking. He is currently serving a double life sentence (50 years) plus an additional 40 years, for a total of 1080 months, without the possibility of parole.

Blume stated that the market expects announcements about the release of Ross Ulbricht from prison on the first day. While it remains to be seen how Trump would accomplish this, the crypto community has once again begun campaigning for Ulbricht’s freedom following Trump’s victory using the hashtag #FreeRoss on X.