Trump's Policies Spark 10% Bitcoin Surge Amid Fed Criticism

Donald Trump's influence on the crypto market is undeniable, with his actions and statements often triggering significant reactions. This influence can be divided into two main areas: internal wars, which involve domestic policies and institutional conflicts, and external wars, which encompass global tensions and international policy.

Trump's recent actions have targeted the U.S. financial system and the Federal Reserve. He has criticized Jerome Powell, the Federal Reserve Chair, for not cutting interest rates quickly enough, questioning the Fed's independence. This monetary pressure has created uncertainty in traditional markets but has often favored crypto, particularly Bitcoin, which tends to thrive during periods of distrust in fiat institutions.

Additionally, Trump has hinted at supporting crypto-friendly regulation through the GENIUS Act, which aims to regulate stablecoins in a way that promotes U.S. dollar dominance on the blockchain. While it is too early to determine if this bill will become law, the positive narrative around U.S.-backed crypto innovation has boosted market confidence, particularly for Bitcoin, USD-backed stablecoins, and exchanges aligning with U.S. compliance standards.

Trump's foreign policy threats may present an even bigger wildcard for crypto. His vocal support for Israel and aggressive stance toward Iran risks escalating into broader regional conflict. Historically, war tensions have fueled crypto demand as a hedge, especially for Bitcoin and privacy coins. However, war also brings market fear, risk-off moves, and unstable short-term sentiment. A prolonged conflict could increase oil prices and inflation, making rate cuts even less likely.

Trump's previous term was marked by a tariff war with China, and he is now signaling new tariffs against the EU, which could reignite trade tensions. For crypto, this triggers two key effects: supply chain disruptions leading to economic slowdowns and higher crypto interest, and global dollar fear making non-U.S. assets like Bitcoin more appealing.

One of the most unexpected elements of the Trump crypto effect is the announcement of a TRUMP-branded phone, rumored to integrate security features and alternative media access. While the phone itself is unrelated to crypto infrastructure, it carries massive symbolic and memetic weight. The launch could revive attention around the $TRUMP token, a memecoin already riding high on political hype. If the phone uses Solana as a base blockchain, like some recent political tokens, the price of $SOL may also benefit.

In conclusion, both internal and external wars have significant impacts on the crypto market. External wars create sudden fear and volatility but often lead to Bitcoin strength over time. Internal battles, especially around rate policy and stablecoin legislation, have a more lasting impact on the structure and future of the crypto market. Traders should monitor both areas, but long-term holders may benefit from external chaos, while internal conflicts could reshape how crypto is regulated, adopted, and used in the U.S.