As Donald Trump reassumes the presidency in 2025, the U.S. has once again become the epicenter of the cryptocurrency market, driven by his commitment to make the country central to the crypto industry. According to a Bloomberg report, this shift has not only boosted trading volumes but also brought about a significant return of institutional investors and increased liquidity, reversing trends from the previous administration under President Biden, where Asia had momentarily taken the lead due to perceived regulatory pressures.
The influence of Trump’s policies is reflected in Bitcoin’s (BTC-USD) trading patterns, with the U.S. now accounting for 53% of daily dollar trading — up from 40% in 2021 — based on data from Kaiko, as cited by the publication. This increase underscores a shift back to U.S. dominance in crypto liquidity, as noted by Thomas Erdösi from CF Benchmarks, who attributes this to growing institutional involvement.
The launch of U.S. Bitcoin ETFs earlier in 2024 has been pivotal. These ETFs have seen extraordinary trading volumes, exceeding $500 billion and attracting net inflows of about $36 billion. BlackRock‘s iShares Bitcoin Trust stands out as one of the most successful fund launches, signaling strong investor interest. With Trump’s administration, expectations are high that the range of crypto ETFs will diversify beyond just Bitcoin and Ether (ETH), potentially fostering a new wave of investment vehicles.
Moreover, the Chicago Mercantile Exchange (CME) has seen its Bitcoin and Ether futures contracts reach unprecedented levels of open interest, overtaking the previously dominant offshore exchanges like Binance. This development highlights the U.S.’s increasing role in setting benchmarks for crypto pricing and liquidity.
The rejuvenation of market depth, crucial for handling large trades without significant price impact, has been another beneficiary of this pro-crypto environment. The report notes that after the disastrous collapse of FTX and Alameda Research in 2022, which had severely diminished liquidity, the U.S. ETFs and Trump’s favorable stance have significantly closed what was termed the “Alameda gap,” bringing market depth back to pre-crisis levels.
This resurgence is not just about numbers; it represents a broader acceptance and integration of cryptocurrencies into the traditional financial landscape under Trump’s administration. With regulatory frameworks potentially becoming more defined or relaxed, the U.S. could be poised to lead in crypto innovation, investment, and regulation, further solidifying its position in the global crypto market. However, the sustainability of this growth will depend on how these policies are implemented and the extent to which they align with global standards and investor expectations.
Reference: Bberg
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