The Bitcoin price and the broader crypto market surged following Donald Trump’s election victory in November, with the rally gaining fresh momentum in the days leading up to his inauguration on Jan. 20.

Crypto enthusiasts are largely sold on Trump’s image as the industry’s messiah, bolstered by his self-styled role as a champion of pro-crypto policies. But are these hopes grounded in reality, or is the market caught up in make-believe?

During his rousing speech in Nashville last July, Trump made bold promises to transform the U.S. into the crypto capital of the world. To support this vision, he affirmed his intent to establish a Strategic Bitcoin Reserve (SBR).

“We’re gonna do something great with crypto because we don’t want China or anyone else getting ahead,” Trump told CNBC last month.

Now, as initial signs of rising inflation spark fears of an economic crisis, Trump is expected to issue several crypto-related executive orders upon his return to the White House. The incoming administration has already announced plans to loosen regulations, establish a Crypto Presidential Advisory Council—reportedly including around 20 CEOs and founders with strong ties to Trump—to give the industry a voice in government, revoke restrictive policies like SAB 121, and position the U.S. as the global center of Bitcoin mining. 

Crypto cronies

Trump appointed venture capitalist and podcast host David Sacks as the country’s first artificial intelligence and crypto czar.

As part of the weekend inauguration celebration, Sacks hosted a crypto ball at the Andrew W. Mellon Auditorium in Washington, D.C., on Jan. 17. The event was co-hosted by BTC Inc., Stand With Crypto, Exodus, Anchorage Digital, and Kraken. Sponsors included MicroStrategy, MetaMask, Coinbase, Solana, Galaxy Digital, Kraken, and others.