Abu Dhabi, Gulf Tech News
While Trump’s return to the White House initially coincided with bitcoin pushing to new record highs, that early optimism has faded. Expectations of lighter regulation and a more industry-friendly stance have yet to translate into sustained upside, with bitcoin down nearly 20% over the past three months. Investors have quickly learned that supportive rhetoric alone is not enough—particularly in a market now driven by macro forces rather than internal crypto narratives.
Bitcoin is behaving less like a political trade and more like a high-liquidity risk asset, responding primarily to dollar liquidity, interest-rate expectations and broader risk sentiment. With gold absorbing much of the safe-haven demand and equities continuing to attract growth capital, there has been little urgency to rotate meaningfully into bitcoin, even against a friendlier regulatory backdrop. Gold and silver have delivered stellar performance over the past 12 months, attracting strong investor flows and generating ‘bitcoin-like’ returns that have left bitcoin trailing.
The key takeaway for investors is that friendlier crypto policy helps at the margins, but it does not override macro conditions or deliver an overnight turnaround. While Trump continues to speak positively about crypto, his focus appears to be elsewhere—ranging from geopolitics to broader economic priorities—meaning markets cannot rely on political headlines alone to drive prices higher.
Bitcoin’s long-term case remains intact, supported by structural demand and institutional participation, but in the current environment price action is being driven by liquidity and risk appetite, not politics. Any benefits from a more crypto-friendly stance are likely to materialise gradually over time rather than as an immediate boost to prices,” said Sam North, Market Analyst at eToro.
