Trump is about to take office, and encryption companies have donated more than 10 million US dollars to the inaugural committee. How will the market interpret it?

Author: Weilin, PANews

As U.S. President-elect Trump’s inauguration on January 20 approaches, leaders in the encryption and technology industries are preparing to participate in a grand celebration. Among them, the Crypto Ball will be held in Washington on January 17, and David Sacks, the White House Director of Artificial Intelligence and Cryptocurrency, will host the VIP reception for the ball. Although Trump himself will not be attending, top companies and leaders in the crypto industry have been actively raising funds for the ball and a series of festivities in record time.

In January, will the market rise caused by Trump happen again? The price trend of Bitcoin has ushered in many key points, and analysts have given their own predictions on the implementation of the New Deal and price trends.

To celebrate Trump’s inauguration, “crypto czar” David Sacks will host a

crypto dance party

On January 20, Trump will take the oath of office for his second term as President of the United States. This day is destined to become an important moment in American history, and the encryption dance held on January 17 has attracted a lot of attention. In addition to regular tickets, this event also has a VIP reception hosted by Trump’s super political action committee MAGA Inc. Although Trump himself will not attend, David Sacks, the White House’s director of artificial intelligence and cryptocurrency, will appear as the host of the VIP event.

Tickets to the event are expensive, with general admission starting at $2,500, but the real draw is the VIP and private packages. For $100,000, VIP guests can network with leaders in the crypto space. The $1 million ticket package provides four tickets and the opportunity to have a dinner with Trump himself at a later date.

The organizer of the event is BTC Inc, and the co-organizers are Stand With Crypto, Exodus, Anchorage Digital and Kraken. The sponsorship package to co-host the event is $5 million. Other sponsorship opportunities range in cost from $150,000 to $1 million. Currently, sponsors of this event include Coinbase, Sui, MetaMask, Galaxy Digital, Ondo, Solana, Metaplanet, MARA, Satoshi Action Fund, MicroStrategy and other well-known encryption companies.

Multiple crypto institutions donated to Trump’s inaugural committee, with

Ripple making the highest donation

As part of the inauguration of the new president, Trump’s inaugural committee’s fundraising event also attracted the participation of a large number of crypto industry companies. Crypto companies are seeking to have a stake in the influence of the new administration by donating funds to Trump’s inaugural committee.

Trump's inaugural committee has set a record for fundraising, raising more than $170 million. Donors began receiving notifications the week of January 10 that some events in Washington were full. Inauguration activities will begin on January 17. Those who donate $1 million or raise $2 million will receive tickets to six different events, including the swearing-in ceremony on January 20 and a January 19 "... Candlelight Dinner,” which was described as the “pinnacle event” of the weekend. They also receive two tickets to a dinner with Vice President-elect J.D. Vance and his wife.

Among crypto company donations, Ripple is undoubtedly the leader in donations, donating $5 million worth of XRP to Trump’s inaugural fund. Following Trump’s successful re-election on November 5 last year, the value of Ripple’s custodial XRP reserves grew by more than $85 billion. Ripple CEO Brad Garlinghouse and chief legal officer Stuart Alderoty recently met with Trump.

Companies including Robinhood, Coinbase, Circle, and Kraken have also donated $2 million, $1 million, $1 million USDC, and $1 million to the inaugural committee.

Circle CEO Jeremy Allaire said in an X Platform post: “We are excited to build a great American company, and the Commission’s acceptance of USDC payments shows how far we have come and demonstrates the potential and power of the digital dollar.”

In addition, a company spokesperson confirmed that Moonpay recently made a donation to support the inauguration of the president-elect, but did not disclose the amount of the donation. New York-based Ondo Finance also donated $1 million to Trump's inauguration in late December.

Trump may release encryption-related policies on his first day in office,

but implementation will still take time

According to Reuters, Trump is expected to issue at least 25 executive orders on his first day in office, which may involve cryptocurrency-related policies. According to a report by The Washington Post, Trump is likely to announce on his first day in office the repeal of the controversial crypto accounting policy SAB 121, which requires banks to treat their digital asset holdings as liabilities, thereby reducing their balance sheet. reflected in the table.

However, while the crypto industry is looking forward to Trump taking office, the implementation of policies may not be so rapid.

NYDIG, a Bitcoin financial services organization, said it may take time for Trump to fulfill his campaign promises. NYDIG said there will be no immediate changes to encryption policy after taking office, especially since some top government positions have not yet been filled. "We advise against having high expectations for immediate changes. Key officials still need to be appointed, those who have been appointed need to go through a confirmation process and, once confirmed, they will need to assemble their teams."

In addition, Trump has not yet announced who will lead agencies such as the Commodity Futures Trading Commission (CFTC), the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC). However, NYDIG predicts that the heads of these institutions “will be supportive of Bitcoin and cryptocurrencies.”

At the same time, whether the market has "priced in" Trump's policy changes remains an open question. Analysts Dan Gambardello and Hoeem believe that the market has not yet priced in Trump's inauguration. This means that once Trump officially takes office, the cryptocurrency market may still have room to rise.

“People think the impact of a pro-crypto Trump administration and governments rushing to buy Bitcoin is already priced in. But in reality, it’s clearly not yet priced in,” Gambardello posted on the X platform.

Cryptocurrency expert Hoeem also expressed a similar view: “Trump’s inauguration is not priced in.” Hoeem further added: “Trump will reverse any policy that negatively affects the crypto market while doubling down on any policy that has a negative impact on the crypto market.” Measures that have a positive impact on the market. From day one, he wanted the market to keep rising, not only because of his team and family's close ties to the market, but also because of his personal pride."

Bitcoin Price Trend: Mixed Effects of Interest Rate Cut Expectations

Adjustment and New Deal

While the market anticipates that Trump may bring about policy changes after taking office, analysts are also paying attention to the trend of Bitcoin prices.

As 2025 begins, the cryptocurrency trading environment is showing mixed trends following the December FOMC meeting and the holiday season. According to a report by 10x Research, the first quarter of 2025 may not unfold the same scenario as late January to March or late September to mid-December 2024.

The Consumer Price Index (CPI) data released on January 15 has become a key event to watch. The market may pull back before the CPI data is released, and if the data turns out to be favorable, the market may rebound again.

"Favorable inflation data could reignite optimism and push the market back ahead of Trump's inauguration on January 20," said Mark Thielen, founder of 10x Research. However, the momentum generated by this rebound may be short-lived. Thielen added that the market may pull back before the FOMC meeting on January 29. He predicts that Bitcoin will be in the range of $96,000 to $98,000 by the end of January.

Crypto investment agency QCP Capital published an analysis on January 13 saying that despite the adverse macro environment and rumors of Silk Road still lingering, cryptocurrencies appear to have gained a foothold as the support levels of $91,000 and $3,100 are currently Still remains the same. Implied volatility is also at relatively low levels and continues to decline, with only a slight bearish skew ahead of Trump's inauguration.

Despite the muted reaction from volatility markets, cryptocurrencies are not out of the woods yet. The macro storm is still looming, and the producer price index (January 14), consumer price index (January 15) and initial jobless claims (January 16) will be released soon, which may add fuel to the market fire. salary. As the U.S. economy heats up, this week will be a real test for cryptocurrencies to see whether they can perform as a hedge against inflation.