In recent weeks, Donald Trump has taken a series of measures and made statements that have had a strong impact on financial markets, especially in cryptocurrencies. The escalation of the trade dispute between the USA and China, aggressive tariff measures, and bolder crypto policy announcements have triggered an unprecedented wave of volatility.

The "perfect storm": trade war + leverage

On October 10, 2025, Trump announced tariffs of 100% on exports of Chinese technology and export controls on critical software.

This generated uncertainties in global chains and undermined investor confidence.

The crypto market underwent one of the largest liquidations in recent history: over $19 billion were liquidated in a few days.

Excessive use of leverage exacerbated the decline, leading to automatic sell orders and liquidity withdrawals.

Bitcoin fell by more than 8% in a single day, Ethereum followed the decline, and altcoins plummeted even further. Days later, the market began a partial recovery: Bitcoin surpassed $114,000 again.

Crypto measures of Trump: strategic reserve and regulation

1. Creation of the strategic reserve of crypto assets

In March 2025, Trump created the U.S. Strategic Bitcoin Reserve, a strategic reserve of Bitcoin, and the U.S. Digital Asset Stockpile for other seized cryptocurrencies.

These reserves are formed with crypto assets confiscated by the government, at no cost to the taxpayer.

The goal is to retain part of these assets instead of selling them, avoiding negative pressure on prices.

The U.S. government already holds about 198,000 BTC, making it one of the largest public holders in the world.

In addition to Bitcoin, the reserve includes Ethereum, Solana, XRP, and Cardano.

The measure has two main effects:

1. Strong institutional signal: the U.S. recognizes cryptocurrencies as strategic assets.

2. Supply impact: reducing circulation may favor appreciation.

2. GENIUS Act — Regulation of Stablecoins

Passed in July 2025, the GENIUS Act creates clear rules for stablecoins.

Requires 1:1 backing in dollars or safe assets, regular audits, and total transparency.

Determines that issuers must have mechanisms to freeze or burn tokens when legally ordered.

Gives the Treasury more power to combat money laundering and illicit use of stablecoins.

The law brought legal security and predictability to the sector, creating space for greater use of stablecoins in payments and digital finance.

3. Ban on CBDCs and encouragement of private innovation

Executive order 14178, signed in January 2025, prohibited the development of a central bank digital currency (CBDC) in the U.S.

Trump argues that state digital currencies threaten financial freedom and the private sector.

In contrast, created the Presidential Working Group on Digital Asset Markets, a task force responsible for proposing new policies for the crypto sector.

Greatest impacts on the crypto market

1. Volatility and 'Trump risk'

Recent tensions with China have shown that Trump’s statements or policies have immediate power over the crypto market. Investors are now closely monitoring every move from the White House.

2. Leverage and structural fragility

The record liquidation of $19 billion proved that the market is still highly sensitive to shocks. Exchanges and investors are reviewing leverage limits and automatic protection systems.

3. Greater institutional legitimacy

Trump’s pro-crypto policies transformed the perception of the sector. With a strategic reserve and clear regulation, the market attracts more institutional investors and traditional funds.

4. Risks of conflict of interest

Trump and close associates are involved with companies linked to cryptocurrencies. This raised alarms about possible conflicts of interest and favoritism towards specific projects.

5. Market adjustment

Despite the shocks, the market appears more mature. The reduction in supply and institutional interest indicate a trend towards stabilization in the long term.

Possible future scenarios

Scenario: Institutionalized environment

Description: Clear regulation and active crypto reserves

Consequences: Greater stability, gradual appreciation

Scenario: Ongoing shocks

Description: Geopolitical crises and abrupt decisions

Consequences: High volatility and massive liquidations

Scenario: Political scandals

Description: Conflicts of interest or mismanagement of the reserve

Consequences: Loss of trust and capital flight

Scenario: Coordinated global adoption

Description: Other countries follow the American model

Consequences: Global expansion and strengthening of the sector

Conclusion

Recent decisions by Donald Trump redefine the role of the United States in the cryptocurrency universe. The creation of strategic reserves, regulation of stablecoins, and the veto of CBDCs transform the country into an epicenter of global crypto policy.

On the other hand, the market faces elevated risks: volatility, geopolitical tensions, and potential conflicts of interest.

Still, the move indicates an important transition — from cryptocurrencies as speculative assets to strategic state assets.

The coming months will be crucial to understand if this new era will bring stability and growth, or if it will open space for new turbulence.

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