'Crypto-Trump' Theory Gains Momentum Ahead of US Elections

The 'Crypto-Trump' hypothesis is gaining traction in the crypto market, suggesting that positive announcements from Donald Trump's administration could boost the industry ahead of the US Congressional elections. In 2024, crypto companies became the largest corporate political donors and seem to expect a return favor.

According to data, the crypto industry has contributed around $189 million to the current election cycle, more than one-third of all corporate donations. This expectation of positive news from the White House is fueling speculation that Trump's administration may announce favorable policies or regulations for cryptocurrencies before the elections.

The theory is also linked to recent developments in the industry, such as World Liberty Financial, a company associated with the Trump family, receiving preliminary approval to register as a national trust bank. This would allow it to issue its own stablecoin and hold dollar reserves backing it. Silicon Valley billionaires are also increasingly using cryptocurrencies for large private deals.

While some investors remain cautious, market participants are optimistic about the potential for a bull cycle to begin, with aggregate demand for bitcoin becoming positive for the first time since October 2025. BlackRock remains bullish on bitcoin, recommending holding 1-2% of a portfolio in BTC for diversification.