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Trump Ties Billions to Bitcoin as Crypto Becomes Core of His Agenda

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  • Donald Trump is tying a large portion of his family’s wealth to Bitcoin during his second term as U.S. president.
  • Trump Media and Technology Group plans to raise $2.5 billion through stock sales and convertible bonds to purchase Bitcoin.
  • The company currently holds $759 million in cash and reported a net loss of $401 million in 2024.

Donald Trump is moving aggressively to anchor his family’s financial future to Bitcoin as his presidency enters its second term. His media company, Trump Media and Technology Group, has announced a $2.5 billion plan to purchase the digital asset. The move comes as Trump’s net worth stands at $5.2 billion, with a major portion now exposed to cryptocurrency risk.

The plan is to raise the capital to buy the big Bitcoin by selling both stocks and convertible bonds. Trump Media holds $759 million in cash and investments, making the new raise essential to proceed. The deal, advised by Cantor Fitzgerald, is expected to close by May 29.

Trump remains deeply involved in the company, retaining a $2.6 billion stake through a trust managed by Donald Trump Jr. The company is now refocusing on Bitcoin, despite being in losses. Truth Social, meanwhile, is reporting poor revenue and heavy losses as it attempts the shift.

Trump Media Targets Bitcoin to Revive Business Model

If the Bitcoin plan makes it to market, the soon-to-be-created Trump Media would sell $1.5 billion in stock and issue $1 billion worth of convertible bonds. The company said in a recent filing that fundraising would pay for the full purchase. The results in Q1 were $820,000 in revenue with $38 million in losses.

During his second term, Trump has kept a firm hand on the rudder of the company’s direction. It may be the firm’s boldest move since going public. The decision reflects the large place that Bitcoin is taking in the global financial system, said CEO Devin Nunes.

The firm’s $401 million Net Loss for 2024 has forced questions on its capacity to run without additional capital. But Trump has not sold the shares and shows no hint of changing his ways. This pivot indicates that the cryptocurrency strategy is now personally owned.

Trump-Aligned Businesses Follow Bitcoin Push

Donald Trump Jr. is on the board of PSQ Holdings, which is now mulling Bitcoin as part of its treasury. The day the Trump Media news hit, Strive Asset Management launched a $750 million Bitcoin fund. Former Republican candidate Vivek Ramaswamy co-founded the fund.

The move came alongside Cantor Equity Partners, a crypto expansion partner linked with Trump through Commerce Secretary Wilbur Ross’ family. In partnership with Tether and the Softbank Group, they will start building out Bitcoin reserves on that venture. They are a sign of a broader movement in Trump’s financial universe.

In the process, Eric Trump is pushing crypto while appearing at global events in Abu Dhabi, Dubai, and Washington. Tokyo-based Metaplanet is also now listed as an adviser to him, and says it also upped its Bitcoin holdings. Unifying the family’s strategy also aids Trump’s crypto-economic agenda.

A new Trump-linked entity has entered the Bitcoin production sector, as it now controls half of a major mining firm called Hut 8. The move goes beyond the Trumps’ ownership of digital assets. Trump-connected ventures are already embracing blockchain operations, and the firm joins a growing list.

Since Trump’s reelection, Bitcoin has soared, hitting a record $112,000 today, up 55 percent since November. Still, the volatility has been a problem: Shares of Trump Media have fallen 34% during the same period.

Related Reading | Bitcoin whale activity explodes with 122,000 BTC added in six weeks

Is Trump Behind Bitcoin’s $100K Surge? Justin Sun Thinks So

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  • Justin Sun spoke at the Bitcoin 2025 conference and discussed Donald Trump’s impact on the crypto industry.
  • He stated that Bitcoin’s rise past $100,000 was influenced by Trump’s strong support for digital assets.
  • Sun emphasized that Trump’s policies are helping position the United States as a global crypto leader.

The Bitcoin 2025 conference sparked fresh debate on U.S. crypto policy, drawing attention to Donald Trump’s stance on Bitcoin. Tron founder Justin Sun highlighted Trump’s growing influence on the digital asset sector. He was part of a panel that discussed recent policy shifts and market movements.

Sun pointed out that Trump’s administration appears committed to advancing Bitcoin adoption across national institutions and private investments. He emphasized that Trump’s recent actions, including regulatory initiatives, have directly impacted Bitcoin’s market trajectory. According to Sun, Bitcoin’s rise beyond $100,000 happened under Trump’s pro-crypto influence.

Key industry and political entities were also in attendance, illustrating the nexus between policy, technology, and finance. Sun matched Trump’s digital asset agenda by supporting broader institutional engagement. His endorsement is backed up by his presence at recent crypto-related meetings.

Justin Sun Connects Bitcoin Surge to Trump

During the conference, Justin Sun emphasized the president’s visible impact on the recent Bitcoin rally. The Covid lockdowns were stamped as a key driver of Bitcoin’s price surge, which saw the cryptocurrency cross the $100,000 benchmark, he said, but connected Trump’s re-election to the massive price jump. After the presidential election results, crypto grew, as it had during the 2008 global financial crisis, Sun said.

He also linked Trump’s victory over Kamala Harris to a rise in sentiment across the global crypto market. After Trump expressed support for decentralized technologies, investor confidence began to strengthen, he said. Sun said Bitcoin adoption and investment are now underpinned by policy direction.

The Trump position ended up putting the U.S. in front of the pack in the world of crypto development, the Tron founder said. Particularly with clear political support, digital assets rose to more prominence on political agendas as bona fide objects of financial discourse. Such support is still crucial to scaffolding sustained growth for this business, Sun said.

Strategic Bitcoin Reserve and Government Holdings Gain Attention

Justin Sun’s comments followed the president’s recent executive order establishing a Strategic Bitcoin Reserve. Ultimately, crypto is an effort to secure long-term national crypto reserves and a more competitive US. Trump’s administration has made digital assets a strategic priority.

Sun had invested $75 million with World Liberty Financial, a firm connected to the president, reports confirmed. Indeed, his role as a top holder of the TRUMP memecoins puts him in line with Trump’s crypto strategy. This is an example of increasing collaboration between political and tech leaders; Sun’s involvement means so.

However, exact figures are classified, and the government currently holds about 200,000 BTC, Senator Cynthia Lummis said. If the planned BITCOIN Act is approved, one million BTC could be authorized for purchases over five years. Justin Sun expressed confidence that Trump’s support would drive the bill forward.

Senator Lummis announced that the Senate will review the BITCOIN Act in the coming week. The bill sets a framework for how national Bitcoin reserves should grow. Justin Sun believes the proposal will shape U.S. dominance in the digital economy.

The legislation perfectly fits Trump’s quest to see the U.S. become a bitcoin superpower. Trump endorsed the legislation, giving it strong political will, Sun said. He said it would give investors more trust and speed up regulatory certainty.

Treasury Pressured as Democrats Probe Trump’s Shadowy Crypto Ties

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  • Democratic lawmakers have requested suspicious activity reports related to Trump’s crypto ventures from the Treasury.
  • The investigation focuses on World Liberty Financial and the Official Trump token.
  • Lawmakers raised concerns about potential foreign influence and lack of buyer transparency.

Democratic lawmakers have requested financial documents tied to Trump’s cryptocurrency dealings, citing legal and regulatory concerns. They asked the Treasury Department for suspicious activity reports involving Trump-linked firms and digital tokens. The investigation targets potential financial misconduct and evaluates the need for new laws.

World Liberty Financial Draws Scrutiny Over Foreign Ties

Legislators expressed concerns with World Liberty Financial, a firm allegedly tied to Trump’s expansion into the crypto world. They fear that the platform might have received payments from international buyers, raising questions over the foreign influence. It is a request for Treasury reports from 2023 onwards, especially related to the transactions flagged by financial institutions.

Trump’s alleged financial ties to World Liberty Financial are a core part of this exploration of digital assets activities. It has been reported that the company has presented crypto-products to buyers outside the United States of America. Democrats contend that these moves sidestepped stricter home-nation supervision, exposing national money sectors to risk.

Justin Sun, an established crypto entrepreneur, is said to have invested in World Liberty Financial and is on a separate SEC radar. Despite this, the SEC’s move to stall action against Sun has made lawmakers more concerned about his collaboration. They are investigating whether this Trump-connected crypto push was taking advantage of gaps in the law or was playing a role in circumventing campaign finance laws.

Official Trump Token Faces Questions Over Buyer Transparency

The Official Trump token, a digital currency endorsed by Trump, is also included in the list of financial records requested. Lawmakers pointed out that the structure of the token’s sale does not allow for revealing the identities of buyers, which creates compliance issues. They cautioned that such anonymity can lead to the use of illegal political contributions or influence.

Democrats argue that the token could be used to channel secret money into Trump’s politically affiliated activities. They want to investigate whether token holders got undue access or favour from Trump or affiliated political groups. The relevant treasury documents might indicate whether these transactions violated financial or anti-corruption law.

The probe also includes possible securities violations linked to Trump’s digital token ventures. If these tokens were deemed security, they would be subject to tighter rules. Legislators attempt to establish whether the president benefited from these offerings during the reelection campaign activities.

MEME Act Targets Political Crypto Activity

The MEME Act, introduced to the Senate by the Senate Democrats on 6 May, seeks stricter regulation of political actors who venture into cryptos. It aims to prohibit Trump and other federal officials from developing, promoting, or exchanging digital assets. The bill also covers high-level government officials’ spouses and children.

The legislation followed Trump’s increasing activities surrounding digital assets, such as meme coins and PR campaigns. Lawmakers say such activity may compromise conflicts of interest or breach financial transparency. They wish to stop federal officials from using their position to enrich themselves crypto-wise.

The MEME Act goes hand in hand with other House inquiries of Trump’s crypto relations, PACs, and donor exchanges. Democrats are still holding the Treasury and DOJ to reports and disclosures. They gave a deadline of May 30th for submitting all the requested suspicious activity reports for review.

Animoca Brands Plots NYSE Move as Trump Alters Crypto Game

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  • Animoca Brands is preparing for a listing on the New York Stock Exchange.
  • The company is taking this step as Donald Trump’s return shifts U.S. crypto regulation.
  • Animoca Brands had previously ruled out a U.S. listing due to strict policies under the Biden administration.

Animoca Brands plans to enter the U.S. stock market with a listing on the New York Stock Exchange. The move aligns with a shifting regulatory climate under Donald Trump’s renewed influence in the White House. The company sees the current U.S. environment as more welcoming for crypto-related firms, reversing earlier hesitations.

Animoca Brands Eyes U.S. Listing Shift

Animoca Brands changed its market expansion plan as a result of favorable regulatory changes in respect to crypto within the United States. Crypto entities had to deal with more enforcement under the Biden administration, and many of them decided to leave the country. Nevertheless, the comeback of Donald Trump has changed the tune to better digital asset policies.

Company leadership views this as a special window of entry into the U.S. capital markets because there are clearer regulatory paths. Animoca Brands has admitted it has changed the aspect under which its listing decision is based to internal structure readiness. Lack of market conditions is not going to push back the timeline, say the latest public statements by the firm.

Some of the executives are currently looking at different shareholding structures before they can make an official announcement. The company expects to conclude decisions and enunciate plans for the listing shortly. It considers a listing in the U.S. as both a chance for growth and a wider endorsement of the development of an industry.

Animoca Expands With Web3 Investment Strategy

Animoca Brands recorded $314 million in revenue on an annual basis, which is an increase from the previous year’s $280 million. The company recorded EBT & depreciation of $97 million, which represents steady performance in operations. In addition, it has almost $300 million in cash and stablecoins.

Its asset portfolio comprises $583 million of digital assets, meaning that it enhances its market credibility. Animoca Brands oversees a vast network; the group owns more than 540 companies, which include OpenSea, Kraken, and ConsenSys. These investments provide the base of its Web3, NFT, and blockchain gaming strategy.

Animoca Brands restored its global reputation after getting delisted from the Australian Stock Exchange in 2020. Since then, the company has emerged as a kingpin of blockchain-oriented industries. It is situated for a U.S. public offering between those able to recover and scale.

Crypto Sentiment Shift Under Trump’s Administration

Animoca Brands is one of many firms taking advantage of policy changes when Trump returned to power. Against this background, companies like Deribit have begun venturing into U.S. expansion due to relaxed regulations. The government’s backing of crypto is starting to change market sentiments.

Trump’s recent words compared crypto’s stability to the stock market’s stability in times of crisis. His public support has also brought about an element of respectability for digital assets in the once traditional financial circles. These developments have led firms to rethink entry to the U.S. markets.

Animoca Brands considers the current moment a crucial point in the development of the digital asset industry. It views the atmosphere of regulation as much more amiable than years ago.

Related Reading | Metaplanet’s Bold $15M Bitcoin Bet: Aims for 10,000 BTC by 2025

Elizabeth Warren Slams GENIUS Act Over Trump’s USD1 Crypto Profits

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  • Senator Elizabeth Warren strongly opposes the GENIUS Act due to concerns over illegal profits linked to Trump’s USD1 stablecoin.
  • Warren’s concerns stem from a deal between World Liberty Financial and UAE-based MGX that boosted demand for USD1.
  • The deal used USD1 in a $2 billion Binance transaction, significantly increasing its market ranking.

Senator Elizabeth Warren opposes the GENIUS Act because she views Trump’s USD1 stablecoin as generating illegal financial returns. Her worries emerge from World Liberty Financial’s and UAE-based MGX’s agreement, which strengthened the market demand for USD1. Opposition against the bill has increased in the Senate, and now it must pass a key vote in the House.

Elizabeth Warren Fights Bill Over USD1

Elizabeth Warren raised alarms after the USD1 stablecoin saw a sharp rise in volume and market rank. The price increase came after World Liberty Financial agreed with MGX, allowing the usage of USD1 to buy Binance’s $2 billion acquisition. A reported increase in demand due to this transaction made USD1 the seventh most popular stablecoin worldwide.

Warren believes the UAE agreement allowed WLFI to be affected by foreign influence and unfair profit-making activities that threaten national security. Transparency issues concerning the transaction prompted the senator to push for stricter control over international crypto business transactions. The senator’s statement intensified the pressure on representatives who had yet to determine their vote ahead of the House vote.

Warren’s objections caused ten senators to reverse their original backing of the bill because of security vulnerabilities and a lack of anti-money laundering measures. Many critics assert the GENIUS Act should include more protective elements, even though it once gained bipartisan support. The changing public perception about the bill weakens its forward progress, thus making it harder to move forward.

Warren Pushes Back on Stablecoin Bill

The GENIUS Act, which began as an innovation support program, is being opposed because of concerns about political organizations’ misuse of its benefits. Congress officials doubt how the bill matches ethical requirements and financial standards. The bill’s approval risks undesirably giving unauthorized rewards connected to Trump’s financial interests.

Before David Sacks predicted the bill had sufficient backing for May passage, support diminished during that period. Warren’s critical statements against the administration forced the administration to work double-time to gain senators’ trust. The House vote for the bill faces increased risk due to the unclear situation.

The removal of the backing has paused all attempts to initiate more legislative talks in the immediate future. The current dialogue within the congressional body shows officials will proceed only when financial oversight gets more robust. The Trump administration has not responded directly to the rising demands for alterations to potential legislation.

WLFI Halts USD1 Listing Amid Uncertainty

World Liberty Financial decided to stop its exchange listing plans for USD1 while waiting for the outcome of the GENIUS Act vote. The temporary hold creates difficulties for its market expansion strategy and its attempts to challenge Tether and other competitors. Projecting regulatory confusion may cause the firm to stumble in its pursuit of a competitive position in this constantly changing stablecoin market.

The passage of the GENIUS Act represented an essential requirement in WLFI’s plan because it would have enabled USD1 to work within the extended financial infrastructure. However, the company encounters rising legal obstacles that create challenges in finding new business partnerships. The unclear situation has affected its development plan while delaying technical implementation projects.

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Crypto Beats the Crash? Donald Trump’s Bold Claim Sparks New Political Storm

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  • President Donald Trump stated that crypto assets remain stronger than most assets during market downturns.
  • He emphasized that the United States must lead in digital asset innovation to stay ahead of countries like China.
  • Trump said the widespread adoption of crypto across sectors proves its growing importance in the global economy.

President Donald Trump has maintained robust support for crypto assets by acknowledging their ability to resist market downturns. The United States needs to advance digital asset innovation to maintain its position as a leader over competitors, especially China. His statements came when the Official Trump token (TRUMP) experienced significant growth in its market valuation.

Donald Trump explained that cryptocurrency maintained stability as a financial asset when other markets faltered. Because of current market trends, the popularity of digital currency shows its fundamental importance. The official believed that government support for innovation would be better than regulations to inhibit new developments.

He endorsed using crypto technologies because multiple industries were showing increased acceptance. Trump used worldwide developments to illustrate the importance of leading in digital technology. He established his support of crypto through arguments about boosting national competitiveness and developing long-term growth opportunities.

TRUMP Token Recovers After Sharp Decline

The TRUMP token lost most of its $15 billion value before experiencing intense price swings. Former Trump installations caused their value to decrease substantially, but it regained ground to reach approximately $2 billion. The token value increased by more than 70% after Donald Trump declared his plan to host a private dinner with his most significant token holders.

Only 220 wallets among millions will join the limited attendance at Trump National Golf Club on May 22. The announcement rapidly increased TRUMP token interest, generating temporary profit gains. According to market observers, the investor interest jumped after the event was unveiled.

Many critics viewed the special event warily because they believed it developed into a questionable ” pay-to-play” arrangement. Supporters of the presidential dinner for token holders believe that such rewards create problematic ethical issues. According to supporter opinions, the dinner supports Trump’s continuous dedication to digital assets while facilitating community engagement.

Donald Trump Denies Profit From Crypto Activity

After the TRUMP token event, both Republican and Democrat lawmakers requested an ethical examination. Two key senators, Elizabeth Warren and Adam Schiff, doubted possible personal financial advantages because of their political positions. According to legislators from both sides of the political spectrum, the decision to provide special benefits through token holding could potentially violate ethical boundaries.

Congress members who support Trump still have doubts about the significance of this event. According to her recorded comments, Senator Cynthia Lummis paused after the announcement. The senator stressed the importance of maintaining absolute clarity between private opportunities and public responsibilities.

Donald Trump refused to acknowledge making profits from crypto while insisting his backing of cryptos existed before his campaign started. He declared ownership of token facts unimportant to him and stated he intended no financial benefit from the event. During his presidency, Trump established a plan to keep donating his yearly salary as president.

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Justin Sun Tops TRUMP Token List with 1.17M Coins, Sparks Dinner Buzz

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  • Justin Sun is the top holder of TRUMP tokens with over 1.17 million tokens valued at $14.32 million.
  • Donald Trump has announced a private dinner for the top 220 TRUMP token holders scheduled for May 22.
  • The top 25 token holders will receive VIP access, including a private reception and special tour with Trump.

Tron founder Justin Sun, the top holder of TRUMP tokens, is expected to attend a private dinner hosted by Donald Trump. The special gathering is meant for TRUMP token owners who hold the top 220 tokens, and a special invitation works for the top 25 token holders. Sun’s ambiguous social media update has heightened curiosity about his attendance at the forthcoming event.

TRUMP Gala Announced for Top Token Holders

Donald Trump will organize a gala dinner on May 22 to welcome the 220 TRUMP token holders who possess the largest token quantities. According to official reports, the leading buyers of TRUMP tokens will receive both VIP access levels, and they can satisfy their curiosity by meeting President Donald Trump privately. A large number of crypto enthusiasts and political observers have been drawn to this event.

The dinner ritual honors well-established TRUMP token owners in a program that signifies the growth of its operational capabilities. All event participants will join specially designed Trump-led activities and hosting responsibilities. The public declaration about political Blockchain investment relations has generated broad interest from the general public.

Due to the event’s exclusivity, prominent holders like Justin Sun are expected to attend and possibly influence other market participants. The confirmed date, together with an extensive schedule, increased the event’s credibility. Trump’s participation as host and token holder contributes to increasing public awareness of the token.

Justin Sun Tops the Leaderboard with Over 1.17M TRUMP Tokens

Lookonchain data confirms that Justin Sun holds 1,176,803 TRUMP tokens, valued at approximately $14.32 million. Sun holds the most TRUMP tokens, making him the leading holder amongst other leaderboard members. Sun boosts his chances significantly from his current position to obtain an exclusive invitation.

His recent posting on the X platform, which contains the message “All in the USA,” actively stimulates guesses about his possible attendance. Justin Sun has shown his commitment to the TRUMP token through his ownership stakes without providing any formal announcement. According to market observers, Sun’s presence at the dinner would contribute to greater exposure for this special event.

The analysis suggests he will appear because his record shows he has attended renowned crypto and political meetings. Sun’s participation within the digital asset sector might help boost awareness about the TRUMP token through his market reach. Sun’s involvement in this event could demonstrate his support for all elements of Trump’s crypto development strategy.

TRUMP Token Surges Ahead of Trump Dinner

The announcement from Trump led to a substantial price increase in TRUMP trading, which reached $12.75 after market participants showed their support. Across the past week, investors gravitated toward the TRUMP token, resulting in a splendid 70% worth increase. Market traders started rapidly trading after news spread because of the rising token value.

Market analysts expect TRUMP token prices to decline significantly after Donald Trump delivers his well-known dinner. Speculation suggests that major holders, including Justin Sun and Donald Trump, who hold significant quantities, might sell their positions following the event.

DOJ Shuts Down Crypto Enforcement Team, Shifts Focus to Investment Fraud Under Trump-Era Policy

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  • The U.S. Department of Justice has dissolved its National Cryptocurrency Enforcement Team (NCET), shifting its focus from regulating crypto companies to prosecuting fraudsters.
  • This decision aligns with President Donald Trump’s push for simplifying digital asset rules and completely ending the “regulation by prosecution” approach used under the previous administration.

The US Department of Justice has reportedly closed its crypto crime unit, the National Cryptocurrency Enforcement Team. This decision shows a big step in how the government will handle crypto- related cases moving forward, as they take focus from companies to go after people involved in fraud.

On Monday evening, the U.S. Department of Justice announced to its team that it was shutting down the group, which was initially focused on crypto cases. According to a four-page note released by Fortune, Deputy Attorney General Todd Blanche explained the reason for this decision, claiming that the agency should not act as a watchdog for digital assets. 

He also went on to criticize the previous government for using the department to push harsh legal actions in order to control the crypto space. The memo confirmed that the National Crypto Enforcement Team, one of the leading investigators in the field, officially ended the group right away. 

This move follows President Trump’s order to make digital asset rules more straightforward and to stop what his team calls the “regulation by prosecution” used during Joe Biden’s time in office. In the memo, Blanche made it clear that the role of the Department of Justice is not to act like a regulator for crypto.

Moving forward, he stated that the department will only focus on people who scam or harm investors, instead of going after platforms, privacy tools like Tornado Cash, or other apps that let users hold their own crypto assets. Many have seen this step as part of Trump’s growing support for the crypto space and also a fulfillment of making the United States the crypto capital of the planet. 

The Former DOJ’s NCET’s Formation and Actions

The NCET, which was created in 2021 during Biden’s term, brought together experts from different DOJ sections, including cybercrime and money laundering, to handle major crypto-related cases. The group took action against services like Tornado Cash and investigated crypto activities that were linked to North Korean agents.

Related Reading | Chinese Capital Flight Into Bitcoin Possible If Yuan Drops, Says Hayes

Chinese Capital Flight Into Bitcoin Possible If Yuan Drops, Says Hayes

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  • Arthur Hayes says yuan devaluation by the PBOC could trigger a fresh Bitcoin bull market.
  • Trump threatens 104% tariffs on China if 34% retaliatory hikes aren’t reversed by April 8.
  • Past yuan drops in 2015 and 2019 led to notable surges in Bitcoin prices.

The growing tension between the U.S. and China over tariffs is increasingly seen as a trigger for a potential surge of capital flowing into Bitcoin and other cryptocurrencies. According to BitMEX founder Arthur Hayes, China’s reaction to America’s trade policies could lead to another cycle of capital flight into the crypto market.

On April 8, Hayes remarked on X, “If not the Fed then the PBOC will give us the yachtzee ingredients.” He referenced this as the catalyst needed for a new bull run in the crypto market. He believes that a devaluation of the Chinese yuan by the People’s Bank of China (PBOC) would spark a wave of capital flight into BTC, mirroring trends from 2013 and 2015.

Hayes also emphasized that a similar situation could unfold in 2025, saying the past devaluations had prompted Chinese investors to look to BTC as a store of value. If the Chinese central bank devalues its currency, the narrative is that “Chinese capital flight will flow into Bitcoin,” Hayes said, drawing on historical patterns.

US-China Tariff Battle Escalates

On April 7, President Trump made an announcement on his social media platform, Truth Social, stating that if China did not remove its 34% retaliatory tariffs, the U.S. would impose tariffs of up to 104% on Chinese goods. This new measure was set to take effect on April 9, 2025.

“If China does not withdraw its 34% increase above their already long-term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th,” Trump wrote. His statement also included a declaration to halt all negotiations with China and instead focus on talks with other nations.

Donald Trump 1
Source: Truth Social

In response to the U.S. president’s announcement, China’s Ministry of Commerce issued a strong statement on April 8, expressing discontent with the proposed tariffs. “The so-called ‘reciprocal tariffs’ imposed by the United States on China are entirely groundless and constitute a typical act of unilateral bullying,” a Ministry spokesperson said. They made it clear that China would stand its ground and resist any further tariff hikes.

Yuan Devaluation Spurs Bitcoin Demand

China’s economic decisions, especially the yuan devaluation, have a clear impact on Bitcoin.  For instance, in August 2015, when China devalued the yuan by nearly 2%, its value dropped sharply against the U.S. dollar. Around the same time, BTC’s price rose modestly.

Similarly, in August 2019, the yuan fell below the 7:1 ratio against the U.S. dollar, and Bitcoin’s price jumped by 20% in the same week. Analysts believe Chinese investors turned to Bitcoin as a hedge against the weakening yuan. Crypto asset manager Grayscale directly linked the surge in Bitcoin’s price to the yuan’s depreciation.

Wealthy Chinese citizens, seeking to protect their assets from government restrictions and capital controls, have often turned to decentralized alternatives like BTC. This trend is viewed by many analysts as a natural response to fears about the stability of central banks and the government’s ability to manage currency.

The shift toward Bitcoin becomes more pronounced when the trust in national financial systems erodes, especially when governments are perceived to be manipulating the currency. Historical patterns suggest that when the Chinese yuan devalues, as it has in previous years, more capital flows into BTC, driving the crypto market’s bullish momentum.

As of now, Bitcoin is trading at $79,021, marking a 2.29% increase over the past 24 hours, according to CoinMarketCap.

BTC 1D graph coinmarketcap 26
Source: CoinMarketCap

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Trump Likely to Delay Tariffs to Prevent Economic Downturn, Says Ackman

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  • Bill Ackman predicts Trump may delay April 7 tariffs to allow strategic deal-making window.
  • April 4 sell-off erased $5 trillion in S&P 500 value, surpassing 2020 pandemic panic losses.
  • Ackman warns of potential recession if tariffs are implemented without sufficient preparation.

As the United States navigates economic uncertainty, billionaire investor Bill Ackman suggested that President Donald Trump might postpone the tariffs scheduled to begin on April 7. Ackman, recognized for his market insights, shared his views in a social media post dated April 5.

“I would, therefore, not be surprised to wake up Monday with an announcement from the President that he was postponing the implementation of the tariffs to give him time to make deals,” Ackman said. The investor believes Trump could strategically pause to negotiate effectively and ease immediate market tension.

Xpost
Source: Bill Ackman

Trump announced these controversial tariffs via an executive order signed on April 2. His order introduced a universal 10% tariff rate on all imported goods starting April 5. Additionally, the tariffs are structured reciprocally at about half the rates currently charged by other countries on American products.

Crypto’s Stability Amid Stock Market Tumult

Markets worldwide have reacted dramatically to these tariff announcements. On April 4, investors witnessed a historic sell-off, leading S&P 500 companies to lose $5 trillion in value. Remarkably, the two-day stock market decline exceeded the $3.3 trillion drop experienced during the initial panic over the pandemic in March 2020.

The technology-heavy Nasdaq index officially slipped into bear market territory. This means it is down more than 20% from its recent high point. Simultaneously, commodity markets, including oil, experienced severe drops, reflecting widespread investor unease regarding economic stability.

Despite the chaos, cryptocurrency markets surprisingly managed to remain relatively steady. Crypto’s stability during such dramatic financial fluctuations caught the attention of both advocates and critics. Bill Ackman himself previously stated after the FTX collapse in November 2022 that “crypto is here to stay,” acknowledging digital currency’s resilience.

BitMEX co-founder Arthur Hayes remarked in a post dated April 3, saying: “Global imbalances will be corrected, and the pain papered over with printed money, which is good for BTC.” Hayes confidently proclaimed his enthusiasm, adding: “Some of y’all are running scurred, but I LOVE TARIFFS.”

Hayes
Source: Arthur Hayes

Ackman’s Cautious Advice on Tariff Implementation

Despite recognizing potential benefits, Ackman warns about the risks attached to the sudden application of these tariffs. The investor explained that delaying the tariffs would not only allow the U.S. to negotiate more thoughtfully but also give businesses crucial preparation time.

“The practical reality is that there is insufficient time for him to make deals before the tariffs are scheduled to take effect,” Ackman stated. He added that Trump’s announcement significantly caught global attention, highlighting the tariffs as essential measures to counteract decades of “unfair tariff regime” detrimental to American workers and the overall economy.

Expressing a balanced viewpoint, Ackman further cautioned about possible economic repercussions if Trump proceeds without delay. “The risk of not doing so is that the massive increase in uncertainty drives the economy into a recession, potentially a severe one,” he warned.

According to Ackman, the approaching April 7 deadline could become “one of the more interesting days” in U.S. economic history, emphasizing its crucial impact on future economic trends.

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