Bitcoin Rallies as Trump’s Pro-Crypto Policies and ETF Inflows Reshape Digital Asset Sentiment

Bitcoin Breaks $87K Amid Dollar Weakness and Institutional Support

The cryptocurrency market is seeing renewed investor enthusiasm as Bitcoin (BTC) climbs back above $87,000, bouncing from recent lows near $75,000. The rally is largely driven by the ongoing decline of the U.S. dollar, which has lost nearly 9% year-to-date. As investors hedge against macroeconomic instability and political tensions, many are seeking safer digital alternatives—led by Bitcoin.

Adding fuel to this rally are institutional inflows into spot Bitcoin ETFs, which have been gaining traction since their U.S. regulatory approval. Financial institutions and high-net-worth individuals are ramping up long-term exposure, creating upward pressure on prices. This institutional participation has been seen as a vote of confidence in Bitcoin’s future as a legitimate store of value (source).

The overall momentum signals a possible shift in market sentiment, with Bitcoin now being viewed less as a speculative asset and more as a counterbalance to fiat-driven instability.

Trump’s Crypto Push Sparks Optimism and Controversy

President Donald Trump’s administration has recently unveiled a series of bold crypto-forward policies. Chief among them is the creation of a U.S. Strategic Bitcoin Reserve, a move aimed at asserting the country’s dominance in the evolving digital finance space. Trump has framed the initiative as a way to “future-proof” America’s financial infrastructure and reduce dependence on traditional banking systems (Wikipedia overview).

However, these developments are not without controversy. Critics are raising red flags over potential conflicts of interest. The Trump family is reportedly linked to multiple crypto ventures, including a newly introduced stablecoin known as USD1. The Guardian reports that this overlap between state power and private crypto investments is drawing concern over deregulation risks and ethical boundaries in policymaking (source).

Meanwhile, a brewing story in the altcoin space involves the unlocking of 40 million Official Trump meme coins, with a market value of roughly $320 million. Many analysts expect a steep sell-off, potentially flooding the market and driving down the token’s price. This is generating buzz about meme coin sustainability and the long-term credibility of politically themed cryptocurrencies.

Crypto Industry Adjustments and Ongoing Market Risks

In corporate crypto news, Kraken, one of the world’s leading exchanges, is undergoing internal restructuring. The company is trimming redundant roles while continuing to hire in key areas—marking a strategic pivot following a 15% workforce reduction in late 2024. These moves align with Kraken’s longer-term plans to bridge the gap between digital and traditional financial services (Reuters).

As market players brace for more volatility and policy shifts, the path forward for cryptocurrency markets remains dynamic—shaped by political ambition, investor demand, and technological evolution.