Donald Trump Could Cause the Worst Cryptocurrency Crash in History

Donald Trump's election victory has shaken financial markets around the world, with Bitcoin leading the way. Surpassing $107,000, this cryptocurrency has consolidated its position as a major player in the global economy. Wall Street calls it a "new gold rush," but behind this financial excitement lies an increasingly high risk that could shake the foundation of the global financial system. The integration of cryptocurrency into traditional finance Under the leadership of Trump, cryptocurrencies are no longer fringe assets. They are becoming an integral part of traditional financial structures, infiltrating banks, pension funds, and global markets. While this development excites investors, it comes at a cost: Bitcoin and other cryptocurrencies are losing their rebellious, decentralized nature. When becoming a part of the system, cryptocurrencies are currently facing systemic risks. A market collapse will no longer be a controlled event—it can trigger unprecedented financial domino effects. National Bitcoin Reserve: Trump's Bold Bet Trump's announcement in July about the strategic national Bitcoin reserve has stunned even the most experienced market observers. The plan aims to accumulate 15 trillion US dollars of Bitcoin, positioning the United States as a global cryptocurrency superpower. Although this proposal may seem illogical to skeptics, implementing it could reshape the global financial system. However, concentrating such a volatile asset into national reserves would significantly increase risks. If Bitcoin undergoes a sharp decline, it could destabilize not only the US economy but also spread to international markets. The chaos in Trump's cryptocurrency policy regulations The context of managing cryptocurrencies has always been challenging, but the Trump administration is preparing to make it even more unstable. His choice of Paul Atkins, a fierce critic of financial oversight, to lead the SEC signals a move towards deregulation. Meanwhile, Congress is considering transferring cryptocurrency oversight from the SEC to the less-funded CFTC, causing confusion and weakening enforcement efforts. This legal vacuum benefits cryptocurrency lobbyists but harms ordinary investors. The lack of specific protective measures is particularly worrying when Bitcoin ETFs, introduced by financial giants like BlackRock, bring cryptocurrency into traditional finance. Millions of investors, many of whom are unaware of the risks, are currently experiencing extreme volatility in cryptocurrency. Protecting consumers on the thread In addition to repealing regulations, Trump's allies are targeting the Consumer Financial Protection Bureau (CFPB), an important agency in protecting individuals from financial fraud. Prominent voices like Marc Andreessen and Elon Musk are supporting the dissolution of this agency, paving the way for cryptocurrency platforms to operate with minimal supervision. The consequences of such deregulation are devastating. The collapse of fintech companies, like the Synapse disaster, could occur more frequently, leaving countless consumers without a safety net. Banks and Retirement Funds step into dangerous territory According to tradition, banks and retirement funds have always maintained a cautious distance from cryptocurrency investments. However, the rise of Bitcoin ETFs has changed the game. These institutions are now adding cryptocurrencies to their investment portfolios, driven by the promise of high profits. Under the Trump administration's deregulation program, banks may have unrestricted access to cryptocurrency assets. This is a risky move as the collapse of the cryptocurrency market would not only harm individual investors but could also cripple financial institutions and retirement funds, potentially impacting millions of people. The role of Trump in the expansion of cryptocurrency risk Trump's World Liberty Financial platform has carried out significant cryptocurrency acquisitions, signaling his administration's commitment to integrating Bitcoin into the financial system. Although this approach promotes short-term growth, it also accelerates industry vulnerabilities. History provides a lesson worth reflecting on: the collapse of cryptocurrencies in 2022, largely confined within the industry, may not be significant compared to the systemic risks posed by the adoption of this new cryptocurrency era. The collapse is imminent: A crisis is forming Every cryptocurrency price surge has ended up in a collapse, and this time is no exception. The difference now is the scale. With Bitcoin being integrated into banks, retirement funds, and even national reserves, a collapse will no longer be limited to just investors and tech enthusiasts. Under the leadership of Trump, the risk is higher than ever. If Bitcoin collapses, the consequences could spread across the global economy, causing a financial crisis larger than any previous market failures. Call for caution As the Trump administration moves forward with a crypto-friendly agenda, the world is racing towards uncharted territory. The promise of innovation and growth must be balanced with the very real risks of a system collapse. Without strict regulations and consumer protection, the dream of a Bitcoin-driven future could quickly turn into a nightmare.