Jai Hamid
Crypto CEOs are watching Donald Trump’s return to the White House with high hopes, convinced that his administration will finally deliver the regulatory clarity they’ve been craving for years.
The markets have since surged, with Bitcoin smashing records and flying up to $90,000. Robinhood’s CEO, Vlad Tenev, appeared on CNBC’s “Squawk Box” to discuss what’s happening. “We have seen basically what people are calling the ‘Trump Pump,’” he said.
A new beginning
Tenev and other big names in crypto see Trump as a total reset from what they faced under the Biden administration. For years, the Securities and Exchange Commission (SEC), led by Chairman Gary Gensler, kept the industry on edge with a barrage of lawsuits and enforcement actions.
Major players like Coinbase and Binance spent more time battling lawsuits than expanding their businesses. But with Trump back, crypto CEOs are confident that their calls for regulatory clarity will finally be answered. Tenev added that:
“There’s widespread optimism that the Trump administration, which has stated that they wish to embrace cryptocurrencies and make America the center of cryptocurrency innovation worldwide, is going to have a much more forward-looking policy towards this new industry.”
Coinbase CEO Brian Armstrong couldn’t agree more. He said, “I think we finally have a chance to get some regulatory [clarity] in the U.S. about some of these big open issues that frankly, under Gary Gensler, we just haven’t gotten any clarity for a long time.”
Dogecoin surges as Trump forms the D.O.G.E. department
Dogecoin fans are riding a massive wave after Trump officially announced the highly-anticipated “Department of Government Efficiency,” or D.O.G.E. The president named Tesla’s Elon Musk and former presidential candidate Vivek Ramaswamy as heads of this new department.
The idea is to slash regulations, gut federal agencies, and trim government excess. Elon, who’s called himself the “Dogefather,” wasted no time hyping up the new department. On his platform, X (formerly known as Twitter), Musk can’t stop talking about the “D.O.G.E.” and he’s making it clear he’s on board with Trump’s vision.
Investors followed suit, pumping DOGE up by nearly 153% since election day. Right now, Dogecoin is trading at $0.37 after hitting a high of $0.43. The coin also jumped past XRP, landing as the sixth-largest crypto by market cap.
Back in 2021, Musk helped fuel Dogecoin’s rise to an all-time high of 67 cents before his “Saturday Night Live” appearance, where he called Dogecoin “a hustle,” led to a price crash. Now, with Trump’s new administration, Dogecoin seems to be getting a second wind, this time on a much larger stage.
What’s next for Bitcoin?
Meanwhile, analysts are watching Bitcoin’s skyrocketing price with some caution, as many believe the market is stretching itself thin. This new price point is testing the nerves of investors, who are balancing their excitement with the reality of high volatility and heavy liquidity walls.
Keith Alan, co-founder of Material Indicators, pointed to the stacks of Bitcoin liquidity clustered at $90,000 and noted that these levels are holding things steady, at least for now. “BTC needs to slow down the pace and build some structural support in the new range,” Alan said, describing the situation on X.
With around $80 million in BTC ask liquidity locked in at $90,000 and another sell wall at $100,000, traders know that this party might hit the brakes soon.
CoinGlass data shows a thick layer of liquidity clustering at the $90,000 mark, which has many traders thinking this rally could pause or even drop back. Material Indicators went as far as flashing a down signal on Bitcoin’s daily chart, suggesting the bulls may need to sit tight for a while.
“Trend Precognition is flashing a new [down] signal on the $BTC Daily chart,” the analysts said, cautioning investors to be alert as the price might not make it past $90,000 again in the short term. It’s a tense moment, and while the long-term bulls have their eyes on the $100,000 mark, the short-term bears are watching for any sign of a slowdown.
While some traders are firmly on the bullish side, others are already hedging their bets. Trader Credible Crypto took to social media to lay out his two possible scenarios for Bitcoin’s future. He called it: “Really only two ways about this atm: 1. This is a massive bull trap 2. We keep going up.”
His prediction? Bitcoin’s price could end up choppy between the $70,000 and $90,000 range for a few weeks. For the believers, an attack on six figures might not be far off, but this road won’t be easy.
Beyond Bitcoin, crypto stocks like Coinbase and MicroStrategy are also showing more signs of life, though they’ve seen slight dips in recent trading sessions. Coinbase stock fell by 1%, while MicroStrategy dropped by 2% in extended trading.
But despite these blips, the sentiment around Trump’s return is overwhelmingly bullish for crypto, especially when compared to the Biden era.
Financial markets outside of crypto have also reacted to Trump’s win, with major U.S. stock indexes initially spiking by around 5% right after election day. This early surge, however, is beginning to level off, with some investors stepping back to reassess Trump’s broader economic plans.
His proposals — from tariffs and tax cuts to a hardline stance on immigration — might stir up the economy in unpredictable ways.
