At the end of 2024, the crypto market experienced an unprecedented rapid bull market. Bitcoin prices soared to more than $100,000 after Trump won the US election, thus opening the road to $100,000 for Bitcoin. This wave of market conditions not only drove the rise of Bitcoin, but also led to the prosperity of the entire crypto market. Data shows that the total market value of the global crypto market increased by about $1.8 trillion in 2024, of which $1 trillion occurred after the election. However, this wave of market frenzy was even crazier because of Trumps official inauguration in January 2025. Trumps team made a series of fierce operations, personally launched its MEME coin TRUMP, etc. In just two days, TRUMPs market value exceeded $160 billion. The celebrity effect in the currency circle ranges from Musk to Trump. The sensitivity to information here is far greater than other industries. NX.one Research Institute will deeply analyze the Trump effect and what investment points can be grasped in the Trump 2.0 era.
Looking back at how Trumps victory in the US election ignited Bitcoin
Let’s first review the first Trump effect. After Trump won the US election, Bitcoin’s market trend has broken through three times:
The first paragraph is that since Trump won the US election on November 5, the price of Bitcoin has started to rise rapidly. On November 10, the price of Bitcoin broke through the $80,000 mark, and just three days later, on November 13, it broke through $90,000. The market performance is extremely strong.
The second paragraph is on November 20, when the Trump team announced that they were considering creating a new position in the White House specifically responsible for cryptocurrency policy. This would be the first time in the history of the White House that such a position has been established, reflecting that the influence of the cryptocurrency industry on the new government is significantly increasing. The day after the news came out, the price of Bitcoin climbed further, breaking through $98,000 in one fell swoop.
The third paragraph is that on December 5, Trump officially nominated Atkins, an official who is friendly to cryptocurrencies, as the new chairman of the U.S. Securities and Exchange Commission. According to people familiar with the matter, Atkins will focus on reducing regulatory restrictions on cryptocurrencies and easing penalties for related violations after taking office. After the news of this personnel appointment came out, the price of Bitcoin soared again and successfully broke through the $100,000 mark.
NX.one Research Institute believes that Trumps victory not only detonated Bitcoin, but also opened a new round of bull market for the entire cryptocurrency. The total market value of the entire crypto market increased by 39.9% that month, from $2.48 trillion at the beginning of the month to $3.47 trillion. Ethereum also performed well, rising 47.8% that month, from $2,511 to $3,711. In addition, the altcoin market also ushered in a recovery, with XRP leading the market with a 362.3% increase, and MEME coins such as DOGE and SHIB also rose by 160.4% and 70.7% respectively.
While everything in the market was optimistic and moving forward, the Federal Reserve cut interest rates to 4.5%-4.75% on November 7, further driving the rise of risky assets. At the same time, the resignation of SEC Chairman Gary Gensler triggered the markets optimistic expectations for an improved regulatory environment. But there is no doubt that the core driving force of this bull market is the Trump effect.
Trump officially takes office, and his family is fully involved in the crypto industry
In January 2025, before Trump officially took office, he and his family members entered the crypto industry in a high-profile manner, triggering violent market fluctuations. First, Trump and his wife Melania Trump issued their personal MEME coins.
Trump issues TRUMP token
On January 18, Trump announced the launch of his personal MEME token TRUMP (OFFICIAL TRUMP) on social media, which was the first cryptocurrency issued by a US president in history. The TRUMP token was issued at $0.1824. Within 12 hours of its launch, it rose by more than 15,000%, reaching $82 at one point, with a market value of over $82 billion.
The token is based on the Solana blockchain, and this decision is very critical. NX.one Research Institute predicted in 2024 that a battle between the Ethereum chain and the Solana chain would inevitably occur this year. The issuance of TRUMP triggered a frenzy in the market, and a large number of investors flocked to the Solana chain for trading. Data shows that after the launch of the TRUMP token, the transaction volume on the Solana chain increased by 1200% in a short period of time, and multiple decentralized trading platforms such as Jupiter, Raydium and Meteora benefited from it. The price of Solanas native token SOL broke through $290 on January 19, setting a record high, and Solanas market value also exceeded $159.2 billion.
In addition to the strong empowerment of the Solana chain, it also stimulated and inspired the Meme coin track. The successful issuance of the TRUMP token has stimulated the interest of the wider market in MEME coins, and other MEME coins have also risen. Subsequently, Trumps wife Melania announced the issuance of MELANIA on January 19, and its market value quickly exceeded 10 billion US dollars. Trumps youngest sons meme coin BARRON was also launched. It has now landed on mainstream exchanges like TRUMP and MELANIA, and its market value has soared to about 400 million US dollars in less than 24 hours.
Trumps two sons, Eric Trump and Donald Trump Jr., are also actively involved in the crypto space. Eric Trump has promoted the TRUMP token on the X platform, calling it the familys move into emerging business areas. In addition, the Trump family is deeply involved in the World Liberty Financial project, where Donald Trump Jr. is not only a promoter of WLFI, but is also revealed to be one of the projects helmsmen and involved in the projects strategic decision-making. Later, NX.one Research Institute will share the recent developments of WLFI.
It can be seen that all members of the Trump family have participated in the crypto industry, and the bond between the two parties is constantly deepening. However, the celebrity effect in the cryptocurrency circle is also intermittent, and the market reaction cannot be 100% expected by the oligarchs. For example, when the issuance of the TRUMP token triggered a frenzy in the market and a large amount of funds poured into the crypto market, the launch of MELANIA actually triggered a vampire effect, and the price of the TRUMP token plummeted by 60%, showing that the market is highly sensitive to the dynamics of the Trump family.
Crypto market volatility after Trumps inauguration
Although Trump repeatedly expressed his support for cryptocurrencies during the campaign, he did not mention cryptocurrencies in his inaugural address on January 20. This surprise caused drastic fluctuations in the crypto market:
On January 20, as market funds entered the market to prepare for the positive information that may be released in the inaugural address, the cryptocurrency market started a roller coaster ride. The price of Bitcoin once soared from $99,600 to $109,200, and then plunged sharply. In the morning of the 21st, Bitcoin hit a low of $100,200. As of press time on the afternoon of the 21st, Bitcoin fluctuated around $102,000, down 5.6% in 24 hours.
The corresponding MEME coin has experienced even more dramatic fluctuations. In 24 hours, the TRUMP coin has fallen by more than 46%, and its market value has shrunk to $6.7 billion. The MELANIA coin has fallen by 64% in 24 hours, and its market value has shrunk to $583 million. According to Coinglass data, in the past 24 hours, more than 250,000 people have had their positions liquidated, and the amount of liquidation has exceeded $750 million.
NX.one Research Institute believes that this phenomenon shows that the market is extremely sensitive to Trump’s words and deeds, and his policy expectations have a huge impact on the crypto market. The Trump effect cannot only have an endless increase. Once the market expectations are not met, or the market expectations are not satisfied, the price of the token, especially the MEME coin, will begin to collapse like a mirage, and the risk is extremely high.
Grasping the investment trend in the Trump 2.0 era
Although Trump did not mention cryptocurrency in his inaugural speech or in the executive order he signed, a series of recent actions by World Liberty Financial, a DeFi project supported by his family, indirectly prove Trumps attention to the cryptocurrency field. The following is a detailed analysis of WLFIs recent actions:
1. Adding positions on the first day of employment
On January 20, the day Trump officially took office, WLFI announced that it had increased its holdings of WBTC worth $32.81 million, ETH worth $37.47 million, TRX worth $4.7 million, and other cryptocurrencies, with a total increase of more than $88 million. This move not only demonstrates WLFIs long-term optimism about crypto assets, but also shows that it is actively deploying the global crypto financial market.
2. First investment in Chinese projects
In this increase in positions, WLFI invested in TRX for the first time, with an amount of US$4.7 million. TRON was founded by Justin Sun and is one of the leading projects in the blockchain field. This investment not only marks the extension of WLFIs strategic layout to the Chinese blockchain community, but also opens up in-depth cooperation between the two parties in the field of crypto ecology.
3. Collaboration with Ethena Labs
On December 18, WLFI announced a partnership with Ethena Labs to implement sUSDe in DeFi collaboration. This collaboration will leverage Aave’s lending infrastructure to further increase WLFI’s total value locked and attract more users.
4. Other positions and market impact
From the overview of WLFIs main holdings produced by ODAILY, we can see that ETH accounts for the largest proportion of WLFIs holdings, reaching 61%. In addition, WLFI also holds tokens such as WBTC, AAVE, LINK, and ENA. These holdings are seen as potential positives, bringing the label of American attributes to the relevant tokens.
Conclusion
The Trump effect has brought new development opportunities to the crypto industry, but it has also triggered high sensitivity and potential risks in the market. NX.one Research Institute believes that although Trump did not mention cryptocurrencies in his inaugural speech, the market is still confident in his policy expectations. David Bailey, CEO of Bitcoin Magazine, said that cryptocurrency-related executive orders may be included in the first 200 executive orders after Trumps inauguration. In addition, WLFI, which is supported by the Trump family, has recently shown its clear support for the cryptocurrency field through frequent increases in positions and cooperation with various parties. These signs indicate that cryptocurrencies may still occupy an important position in Trumps future policy planning. Investors need to pay close attention to subsequent policy developments and further actions of WLFI to grasp the development trend of the crypto market.
