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(Seoul=Yonhap Infomax) Sang Min Han, Pil Joong Jeong = As Donald Trump, who has pledged to become a "crypto president," begins his second term, attention is focused on whether the benefits for the cryptocurrency market will continue.
On the 25th, Yonhap Infomax analyzed domestic media coverage of President Trump through the Big Data Analysis Service 'BigKinds' of the Korea Press Foundation. The results showed that, aside from tariff issues, Bitcoin (34.38) was presented as a representative associated keyword. Bitcoin ranked high in the relative index showing the degree of association among keywords based on 1,000 articles.
President Trump has consistently reiterated his pro-cryptocurrency policies even after his election. Paul Atkins, who has been nominated as the chairman of the U.S. Securities and Exchange Commission (SEC), is considered a prominent pro-cryptocurrency figure. Unlike Gary Gensler, the former SEC chairman who had a negative stance on cryptocurrencies, Atkins has shown a friendly attitude by serving on advisory committees such as the Digital Chamber of Commerce.
President Trump launched a cryptocurrency task force (TF) immediately after taking office, involving collaboration between the SEC, the U.S. Commodity Futures Trading Commission (CFTC), and other agencies.
The cryptocurrency TF plans to examine key tasks such as clarifying the criteria for classifying cryptocurrency securities, clarifying the SEC's regulatory jurisdiction, and modifying the registration process for new coin listings (ICOs).
Last month, on the 23rd, President Trump also signed an executive order establishing the 'Digital Asset Market Working Group.' This marks the launch of the first presidential digital asset-related working group in the United States. The working group is expected to submit a report containing regulatory and legislative proposals to the National Economic Policy Advisor within 180 days.
In particular, the working group is expected to discuss the practical feasibility of cryptocurrency policies mentioned since Trump's candidacy, including the strategic stockpiling of Bitcoin.
Reflecting these expectations, Bitcoin prices have shown an upward trend, with 1 Bitcoin (BTC) surpassing $100,000. A Trump-related meme coin called 'OfficialTrump' was also listed.
However, as no substantial cryptocurrency market policies have been implemented so far, cryptocurrency prices are showing a capped trend. The price of 1 Bitcoin has fallen to the $92,000 level, undergoing a price correction. The Trump meme coin has dropped by more than 70% from its peak.
Investment sentiment is also being dampened by a hacking incident that occurred on the 21st, suspected to be the work of the North Korean hacking group Lazarus. Bybit, one of the world's largest cryptocurrency exchanges, suffered the theft of $1.46 billion worth of cryptocurrencies in the largest hack to date.
The delay in interest rate cuts by the U.S. Federal Reserve (Fed), concerns about stagflation (price increases amid economic recession), and "Trumpflation" (Trump + inflation) are weighing on risk asset market sentiment, while market adversities continue to pile up.
Experts predict that the bearish trend will continue for the time being due to concerns about weakening U.S. consumer sentiment and cryptocurrency exchange hacking incidents.
There are opinions that if the working group does not announce a specific timeline for the strategic stockpiling of Bitcoin, it could act as a negative factor.
Kim Hyun-jung, an analyst at Kiwoom Securities, said, "If the timeline for strategic asset promotion within the Trump administration is not specific, the market may be disappointed, seeing the possibility of realization as small."
President Trump envisions strengthening dollar hegemony using stablecoins. While he is expected to continue announcing cryptocurrency market-friendly policies, the key will be specificity, as the market has already priced in expectations. Typically, dollar-denominated stablecoins are often issued by purchasing U.S. Treasury bonds as collateral, leading to increased circulation that translates to higher demand for U.S. Treasury bonds.
Another effective policy drawing attention is the potential inclusion of cryptocurrencies like Bitcoin in sovereign wealth funds. On the 3rd, President Trump signed an executive order directing the U.S. Treasury and Commerce Department to establish a sovereign wealth fund.
If the U.S. sovereign wealth fund acts as a substantial demand source for the cryptocurrency market, it is expected to influence the investment sentiment of other large pension funds.
Recently, cases of other sovereign wealth funds including Bitcoin in their assets have been observed. According to U.S. 13F filings, Mubadala, the UAE's third-largest sovereign wealth fund, purchased BlackRock's Bitcoin spot ETF in the fourth quarter of last year.
Hong Sung-wook, an analyst at NH Investment & Securities, said, "The market is expecting news such as strategic Bitcoin holdings and spot ETFs for altcoins," adding, "Bitcoin may benefit indirectly if there are difficulties in debt ceiling negotiations in the first half of the year."
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Copyright © Yonhap Infomax Unauthorized reproduction and redistribution prohibited.