Trump’s Crypto Stance Ignites Market Turbulence – What’s Next for Digital Assets?

Crypto markets reel as Trump’s latest comments send shockwaves through the sector. The former president’s ambiguous stance—neither fully embracing nor outright rejecting digital assets—has traders scrambling to decode the implications.

Volatility spikes as Bitcoin wobbles

BTC price swings intensified following the news, with the flagship crypto shedding 5% before paring losses. Altcoins followed suit in what analysts call a ‘knee-jerk reaction’ to political uncertainty.

The regulatory shadow looms large

Market makers are bracing for potential policy shifts should Trump regain office. His administration could either accelerate crypto adoption or clamp down harder than current regulators—nobody knows which way the winds will blow.

Institutional players play wait-and-see

Hedge funds and family offices reportedly paused major crypto allocations, with one wealth manager quipping: ‘We’ll buy the dip when politicians stop using digital assets as campaign talking points.’

As always in crypto, the only certainty is volatility—and the occasional reminder that markets hate nothing more than a politician who won’t pick a side.

The Decline of Cryptocurrencies

Although ETH and BTC lacked momentum initially, they have begun to decline. Valid reasons exist for potentially further rapid drops in the days and hours ahead. Trump recently declared that if Russia does not reach a settlement with Ukraine within ten days, secondary sanctions will be enacted. Previously, he expressed disappointment with Putin, stating he decided to shorten a 50-day period.

“Starting today, ten days. We will impose customs duties within ten days. I’m considering secondary sanctions on Russian oil. If I sanction Russia, I’m not worried about oil. We have plenty of oil in the U.S. and we will increase production,” Trump stated. crypto Traders Are Rushing to This App – Here’s Why You Should Too

Since the threat from Russia, oil has surged more than 5%. In his remarks, Trump dismissed the price increase, indicating he is not concerned by stating that “oil prices are currently quite low.”

I’m highlighting these details to warn against the increased risks before the potential intensification of the downturn. We might witness significant volatility this week. If Russia reciprocates with equally intense responses to Trump’s escalated tone, tensions could significantly intensify. With tariff impacts already pushing Powell away from rate cuts, the oil price surge could lead to no rate cuts this year. As this concern preoccupies more investors, we might observe further downturns in cryptocurrencies within hours. However, the crypto market is full of surprises, and BTC might defy chaos. We will see.

Information: What are secondary sanctions? Trump’s mention of secondary sanctions on Russia implies a threat of imposing tariffs of 100% or more on countries purchasing oil products from there. This means that the tariff agreement with China becomes ineffective, as China is Russia’s largest oil client.