Trump's Aid Halt Sparks Crypto Uncertainty

The temporary halt of $1.7 billion in payments to foreign organizations by the Trump administration has sparked a wave of uncertainty in the cryptocurrency markets. The decision, which was announced on January 29, 2025, has raised concerns about the potential impact on global financial stability and the future of international aid.

The halt in payments comes as the Trump administration continues to review and reassess its foreign policy and aid strategies. The move has been criticized by some as a potential breach of international commitments, while others argue that it is a necessary step to ensure that aid is targeted and effective.

The cryptocurrency markets have been closely watching the situation, with some investors expressing concern about the potential impact on the value of digital assets. The halt in payments has raised questions about the stability of global financial markets and the potential for increased volatility in the crypto space.

Analysts have noted that the temporary halt in payments is unlikely to have a significant impact on the overall cryptocurrency market. However, the uncertainty surrounding the situation has the potential to create a ripple effect, with investors and traders becoming more cautious in their approach to digital assets.

The situation is also being closely watched by the US Federal Reserve, which has maintained its interest rate at 4.25-4.5% despite calls from President Trump for a cut. The Fed has indicated that it will continue to monitor the situation and adjust its policy as needed to maintain financial stability.

Meanwhile, Coinbase, one of the largest cryptocurrency exchanges in the US, has added President Trump's 2024 campaign manager to its global advisory council. The move has been seen as a sign of the growing influence of the crypto industry in the political sphere, with some analysts suggesting that the appointment could signal a more pro-crypto stance from the Trump administration.

In other news, Matt Hougan, chief investment officer at asset manager Bitwise, has suggested that President Trump's executive order on crypto could break Bitcoin's four-year cycle. Hougan believes that the order, coupled with an overall regulatory pivot in the United States, could extend the current bull market in crypto into 2026 and beyond.

However, Hougan also noted that the anticipated positive effects of Trump's executive order may take years to materialize, and that the market cannot rule out another crypto winter in 2026. The Bitwise executive shared his outlook