The president-elect Donald Trump is expected to return to the White House on Monday after officially taking office, sparking a wave of speculation about immediate action regarding cryptocurrencies, such as support for a U.S. cryptocurrency reserve.
Benzinga spoke with cryptocurrency experts, who are divided on the likelihood of immediate executive orders, but very optimistic about the market’s near-term outlook.
Will Trump sign an executive order on crypto on Inauguration Day?
The prospect of executive orders on day one is debated among experts, but most agree the measure is very likely in the near future.
Marcin Kazmierczakco-founder and COO of Redstonesaid he believes any action would likely only emerge in the weeks after the inauguration, not on the first day, because of the many pressing issues facing new administrations.
Vijay Pravin MaharajanCEO and founder of bitsCrunchhowever, suggests that decisive and rapid action, such as executive orders, could be a winning strategy for the new president to project an image of immediate success and capitalize on the markets.
Aurélie Bartheresenior research analyst at Nansenindicated that the idea of a strategic Bitcoin reserve would likely not be a unanimous preference and would require consensus building in Congress.
Consequences of Trump’s inauguration on crypto markets
As for short-term market behavior, Kazmierczak expects a positive market response to what he calls favorable regulatory changes.
This sentiment is shared by Maharajan, who predicts a post-inauguration rebound, particularly if Trump makes explicit pro-crypto statements.
Barthere said that a drop in interest rates could be a positive boost for cryptocurrencies, and that markets currently have “enough to encourage” risk assets.
James ToledanoCOO of Unity Walletemphasized the importance of factors other than political influence and focused on “adoption, regulation, and macroeconomic factors” as the real drivers of Bitcoin prices.
The CEO also said that the changes could be favorable for Bitcoin, but also for the Solana (CRYPTO: SOL), the Ripple (CRYPTO: XRP) and the Dogecoin (CRYPTO: DOGE) due to their connection to artificial intelligence.
-A strategic reserve of Bitcoins: yes or no?
The possibility of a US cryptocurrency reserve is a notable point of discussion among experts.
Kazmierczak highlighted the significant potential of Bitcoin (CRYPTO:BTC) if recognized by the world’s largest economy, adding that it could represent a fundamental shift in the market.
Barthere said she believed such a move would provide a “very optimistic” outlook for cryptocurrencies, “legitimizing it as an asset class” and signaling potential action to institutional investors.
Maharajan added that this inclusion could strengthen the dollar’s strength and signal the United States’ commitment to leading the digital assets sector.
Crypto assets that could do well according to experts
Kazmierczak said he believes the decentralized finance sector could be poised to see outperformance, if the environment for the sector improves.
Barthere named Bitcoin because of its “reserve currency” narrative, but also Solana (CRYPTO: SOL), the Ripple (CRYPTO: XRP), the Dogecoin (CRYPTO:DOGE), as well as the entire artificial intelligence narrative.
Maharajan suggested that Trump might favor US-created cryptos, like XRP and Solana, in line with his “America First” ideology, adding: “Bitcoin will do well, of course.”
The consensus among experts is that Trump’s inauguration will be a major event for the cryptocurrency market, with the potential for significant price movements and policy changes.
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