5 Reasons Trump Will Pump Crypto In 2025

Lark Davis

Introduction to Trump's Impact on Crypto

The speaker believes that Donald Trump's administration will be beneficial for risk assets, including crypto, in 2025. They outline five key reasons for this prediction.

Reason 1: Quantitative Easing

  • The US has $9 trillion of debt maturing in 2025, which needs to be refinanced at higher interest rates.
  • To address this, the Trump administration may implement quantitative easing (QE) or a similar form of money printing.
  • The Treasury General Account (TGA) drawdown could also lead to a massive liquidity injection of up to $800 billion.

Reason 2: Weaker Dollar

  • Trump has stated his desire for a weaker dollar, which is beneficial for risk assets.
  • A weaker dollar can lead to increased economic growth and a smoother economy.
  • The speaker expects Trump to achieve a weaker dollar, which will be good for risk assets.

Reason 3: Lower Interest Rates

  • Trump wants to lower interest rates, which can be beneficial for economic growth.
  • Lower rates can reduce pressure on consumers, make borrowing easier, and increase money availability.
  • However, the speaker notes that a rate plummet can be bad for risk assets if it's a response to a massive crisis.

Reason 4: Pro-Crypto Stance

  • Trump is now pro-crypto, having sold NFTs and earned Ethereum.
  • A major sweeping crypto bill is expected in the US, with key figures like Okid Sacks and Hester Pierce involved.
  • Altcoin ETFs are also expected to bring huge liquidity injections into the market.

Reason 5: Personal Interest in Crypto

  • Trump has a personal interest in crypto, with his company launching ETFs for Bitcoin and other coins.
  • The Trump family business has invested in crypto, and they will want to see their investments do well.
  • This personal interest could lead to policies that benefit the crypto market.