Crypto in Flux: Elections, Trade & Turmoil

The cryptocurrency market, once seen as a fringe experiment, has become a key player in the global financial system. However, its value and evolution are heavily influenced by a complex mix of political, economic, and technological factors. 

In the past 6 months particularly we have seen two significant influences on the world of crypto is the return of Donald Trump to office as the President —and the escalating global trade tensions among major economies.

Trump's re-election in 2024 reshaped the crypto landscape in several ways. Trump has previously expressed skepticism toward cryptocurrencies, yet his administration also showed favorability toward deregulation—something crypto markets generally welcome. 

A lighter regulatory framework under Trump could encourage growth in the U.S.-based crypto sector. On the flip side, reduced oversight could also increase market volatility and raise concerns over fraud and illicit use. Additionally, Trump’s stance on traditional finance and support for American innovation may foster favorable tax or operational policies for crypto companies.

Meanwhile, a global trade war—such as tensions between the U.S. and China or growing protectionism worldwide—poses both risks and opportunities for cryptocurrencies. Trade barriers often lead to currency instability, prompting investors and citizens in affected countries to turn to decentralized digital assets as a hedge. At the same time, sanctions and import restrictions could disrupt the supply chain for mining equipment and crypto infrastructure, slowing down innovation or increasing operational costs.

Macroeconomic uncertainty, inflation fears, and central banks’ monetary policies also remain critical. As governments worldwide explore Central Bank Digital Currencies (CBDCs), the role of decentralized crypto may evolve further, either as a competing force or a complementary asset.

Thus we see that the future of cryptocurrencies is being shaped not just by technology but by elections, global diplomacy, and economic strategy—underscoring their increasingly pivotal role in global finance.