Has the Cryptocurrency Market Seen the Last of the "Trump Bump"?

Heading into 2025, many top cryptocurrencies were soaring in value -- and for good reason. The incoming Trump administration positioned itself as the most pro-crypto administration in history. Numerous promises made by President Donald Trump on the campaign trail were expected to boost the prospects of the crypto industry.

Unfortunately, the so-called Trump bump did not last long. Bitcoin (CRYPTO: BTC) is now trading at nearly the same level it was just after the election. And some top cryptocurrencies are now down as much as 45% for the year. So it's perhaps only natural to ask: Have we seen the last of the Trump bump in the crypto market?

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Steps taken thus far in 2025

On the regulatory front, the Securities and Exchange Commission has already dropped several high-profile cases against crypto companies, and is sending signals that it will take a more favorable view of the crypto industry. Former SEC head Gary Gensler has left and will soon be replaced by Paul Atkins, known for his pro-crypto views.

In hopes of making America "the crypto capital of the world," the Trump administration has already created a brand-new position -- the White House AI & Crypto Czar -- to ensure that innovation continues at a rapid pace within the crypto sector. And it recently hosted the first-ever Crypto Summit at the White House. Both are signs of just how important the crypto sector is to Trump's future economic plans.

Best of all, the Trump White House has put into motion the creation of a U.S. Strategic Bitcoin Reserve, as well as a Digital Assets Stockpile. Crypto has moved from being a fringe asset to one that is potentially strategic to America's future.

Steps that still need to be taken

Of course, there is still much to be done. The U.S. still lacks a comprehensive regulatory framework for crypto. For the past two years, the SEC has been so active in its pursuit of crypto that many people assume that there must be some form of legislation in place that spells out what crypto companies can -- and can not -- do. Unfortunately, there isn't.

Moreover, when it comes to supporting Bitcoin, there is more that the Trump White House can do. On the campaign trail, Trump promised to support Bitcoin miners, and to ensure that all future Bitcoin would be mined in the U.S. The current thinking now is that pro-growth policies related to Bitcoin mining will be combined with new thinking about American energy policy.

Speaking of Bitcoin, there's still more that can be done with the Strategic Bitcoin Reserve. As it currently stands, the U.S. federal government has not committed to purchases of Bitcoin. To do that, it will need to find budget-neutral methods to buy Bitcoin. Nothing is off the table here -- including using savings from the Department of Government Efficiency (DOGE) to finance new Bitcoin purchases, or revaluing gold certificates held by the Federal Reserve.

Which cryptos are likely to benefit?

If there is more to come with the Trump bump, the biggest winner is likely to be Bitcoin. There is growing recognition that Bitcoin is now a strategic asset for the U.S., and that it can play an important role in the global economy. As a result, many future actions by the Trump White House will likely be taken with the aim of supporting Bitcoin.

Image source: Getty Images.

The second group of winners is what I'm referring to as the Wall Street cryptos. These are cryptocurrencies that are helping to create a link between the world of traditional finance (i.e., Wall Street) and the world of blockchain finance (i.e., crypto). If you peek at the current portfolio holdings of World Liberty Financial, the Trump-affiliated crypto company, it's possible to see examples of these Wall Street cryptos: Chainlink (CRYPTO: LINK), Ondo, Aave, and Ethena.

And, finally, there are the Layer-1 blockchains, such as Ethereum (CRYPTO: ETH) and Solana (CRYPTO: SOL), and perhaps even Cardano (CRYPTO: ADA). These are the building blocks of the blockchain economy, and it's likely Trump's team will prioritize these cryptos as a way of pushing innovation and growth. In short, they are strategic, and that's why these cryptos were mentioned by Trump when he first rolled out his vision for the U.S. Digital Assets Stockpile.

The long-term outlook for crypto

It's important to adopt a long-term outlook here. With most administrations, the rule of thumb is to give them 100 days to sort things out. So there's still time.

In a best-case scenario, campaign promises will turn into executive orders, and then executive orders will eventually transform into legislation. If so, we haven't seen the last of the Trump bump.

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Dominic Basulto has positions in Bitcoin, Cardano, Chainlink, Ethereum, and Solana. The Motley Fool has positions in and recommends Aave, Bitcoin, Cardano, Chainlink, Ethereum, and Solana. The Motley Fool recommends Ondo. The Motley Fool has a disclosure policy.