The United States wants to be the world leader in the crypto world
Whether we like it or not, the Canadian cryptocurrency market depends largely on what happened not long ago under the Biden administration – the U.S. government is ambivalent about Bitcoin and cryptocurrencies. Leading U.S. crypto companies such as Coinbase and Ripple (the creator of XRP cryptocurrency) face huge regulatory headwinds, and innovation in the industry is at a standstill.
But as President Donald Trump takes office again and becomes a cryptocurrency advocate, it seems that the U.S. government announces new crypto regulations every week. Can these moves once again exceed $100,000 (all numbers) in 2025 to stimulate Bitcoin (BTC)?
Here are the top five Trump has done in the cryptocurrency industry:
- U.S. Securities and Exchange Commission (SEC): The SEC is a key regulatory organization for cryptocurrencies. Its upcoming chair Paul Atkins is crypto-friendly. He said he intends to avoid strict litigation against the cryptocurrency industry to adopt a framework-setting approach.
- Bitcoin strategic reserves: The Trump administration is considering providing the United States with strategic Bitcoin reserves, and if it relates to it, the United States will hold BTC like gold. This can be held on the balance sheet of the Federal Reserve like gold.
- Sovereign Wealth Fund: The Trump administration is also considering establishing a sovereign wealth fund that can invest in state-owned investment funds that can invest in Bitcoin and other assets.
- White House AI and Crypto Czar: Today, the Tsar seems to be all the rage in the White House. In December, Trump appointed venture capitalist, Paypal’s one-time chief operating officer David Sacks and All-in-one podcastas a special consultant to AI and Crypto. Sax believes new crypto-friendly legislation can be passed in just six months.
- Working Group for Digital Asset Markets: In January, Trump formed a working committee that aims to “propose the issuance and operation of digital assets in the United States.” The committee is led by sacks and includes key regulatory stakeholders such as finance Minister, SEC Chairman and Attorney General, etc.
What happened to the price of Ethereum in 2025?
Ether (ETH), the local cryptocurrency of Ethereum, has performed seriously underperformed in the past year, while ETH investors are unhappy. As of February 18, ETH fell by 8% despite BTC growing by about 80% over the past year.
The Ethereum community has witnessed some online drama, which has not helped the leadership changes of the Ethereum Foundation (EF). Ethereum creator Vitalik Buterin wants to maintain control over the changes in the foundation’s staff, but he faces pressure from people in a community that is unhappy with the current situation. To be sure, EF cannot centrally control ETH or its price. However, since this is an important part of the Ethereum community, the trouble with EF can negatively affect investor sentiment and lead to negative price performance. There is another headache: hedge funds’ betting on cryptocurrencies improves short-term positions in ETH. In short, your price is downward when you take a shorter position on cryptocurrency (or any other security). You are betting on the price of the coin to fall.
The accumulation of accumulation in ether shorts reached 40% in a week, reaching the highest record. pic.twitter.com/5oue7kmt6q
– Zerohedge (@ZeroHedge) February 7, 2025
It is not clear whether ETH is threatened in the medium term and whether ETH’s status as the second largest cryptocurrency is threatened by its market capitalization. But, as this chart shows, ETH is not only fighting BTC, but also fighting its biggest rival, Solana (Sol).
The chart above shows that although BTC (blue) and SOL (purple) have risen 81% and 45% respectively over the past year, ETH (red) has lost more than 6%.
Here is another amazing number: 42%. This is the share of ETH in the total cryptocurrency market over the past year. By comparison, during the same period, BTC’s advantage increased by 14.9%, while SOL increased by 1.2%.
Its share of the total cryptocurrency market has dropped below 10% for the first time since July 2021, as ETH’s dominance fell by 42%. As of February 18, it occupied 10.3%.
