Cryptocurrency Bank Run Bombshell “Turns Out It’s a Trump Strategy”

Cryptocurrency Bank Run Bombshell “Turns Out It’s a Trump Strategy”

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Strategic Asset Reserves, Bargain Purchases, Bitcoin, Ethereum, Ripple, Solana, New York Stock Exchange, ETF Funds Flow Out

Cryptocurrency Bank Run Bombshell “Turns Out It’s a Trump Strategy”

It has been pointed out that the cryptocurrency bank run bomb is actually Trump’s elaborate strategy. It is pointed out that the strategy is to buy at a low price before the introduction of the strategic asset reserve system. Virtual cryptocurrencies such as Bitcoin, Ripple, Solana, and Ethereum are fluctuating due to this analysis.


The virtual asset market, which gained momentum with the appearance of Trump, is paradoxically falling due to Trump. The price of Bitcoin has been on the rise since early November last year when President Trump’s election victory was certain. This is because there are expectations that President Trump, who has been promoting policies and pledges that are friendly to virtual assets since the presidential election, will bring a favorable wind to the market.

President Trump has set forth ‘Bitcoin strategic reserve asset’ as a key pledge and has laid out a plan to actively reserve Bitcoin like gold or foreign currency. He also did not leave out performances that are friendly to virtual assets. At a fundraising event in June last year, President Trump called himself the ‘crypto president’ and made a scene of buying a hamburger with Bitcoin. Thanks to this move, the price of Bitcoin hit an all-time high of $109,000 on January 20, the day of the inauguration. The situation in the virtual asset market has been the opposite since the inauguration.

As President Trump started the ‘tariff war’, investors’ risk aversion has increased. As the Trump administration’s high-rate tariff policy increases global trade tensions and uncertainty, funds are flowing into safe assets such as the dollar and gold. In addition, with concerns about a slowdown in the US economy and inflation due to the tariff policy, investor sentiment is freezing even more. Bitcoin, which rose due to the halo effect of President Trump, took a direct hit because of President Trump.

According to the New York Stock Exchange and the virtual cryptocurrency industry on the 27th, Bitcoin fell more than 20% from its all-time high, and altcoins are also falling one after another. The weakness of coins is analyzed to be the result of a combination of factors. First, the global risk asset market has recently shown a joint weakness, such as the plunge in technology stocks on the New York Stock Exchange. As funds from carry trades between Bitcoin spot ETFs and futures have withdrawn along with the decline in related yields, funds are also flowing out of spot ETFs. “The US tariff policy and the possibility of inflation resulting from it are having a greater impact on the market than expected. Although

President Trump appears to be quickly fulfilling his pledges, there are aspects that fall short of the excessive expectations reflected in the market, which has led to a reversal.” The incident in which people around President Trump and his wife made huge short-term profits and most investors suffered losses due to the rapid rise and fall of memcoins is also evaluated as having had a negative effect. The memcoin fraud case involving Argentine President Javier Millay is also considered negative in a similar context. “After President Trump and his wife Melania issued memcoins, altcoin investment sentiment rapidly deteriorated,” he said. There was also a large-scale outflow of deposits after Bybit was hacked and $1.46 billion (approximately 2.1 trillion won) worth of coins were stolen.

Bitcoin is crying and laughing at Trump’s words. Bitcoin, which had been rallying since President Trump won the US presidential election last year, gradually lost its strength and fell to the $90,000 mark in just three months. While it is unclear when the pro-virtual currency policy that earned Trump the title of “Coin President” will be implemented, there are predictions that the bottom of Bitcoin will deepen if the tariff war continues. It

is positive that President Trump’s pro-virtual asset stance continues. Even before his inauguration, President Trump appointed Tesla CEO Elon Musk, who supports “Dogecoin,” as the head of the Department of Government Efficiency. After his inauguration, he launched the Virtual Asset Task Force (TF) in which the SEC and the US Commodity Futures Trading Commission (CFTC) collaborate. The US Congress also launched the “Digital Asset Working Group” in line with this.

Work is underway to establish a foundation for policy promotion, such as examining the possibility of legislation and realization of pledges regarding virtual assets in the future. The problem is when such a policy will be implemented in earnest. Experts believe that there is still room for prices to rebound depending on the policy implementation speed and news flow. Kim Hyun-jung, a researcher at Kiwoom Securities, explained, “We need to watch the situation in the future, such as the priority of tasks presented by the TF team and the specific task implementation,” and “Given the nature of the virtual asset market, news that can determine the policy direction will be quickly reflected.”

It is uncertain whether the virtual asset market will be able to hold out until then. As the tariffs announced by President Trump are being implemented one after another, the trade war is also ripening. President Trump has decided to impose tariffs on Mexico and Canada as planned on the 4th of next month. The countries subject to the tariffs are continuing negotiations, but the possibility of ‘retaliatory tariffs’ spreading is also increasing. If the resulting trade uncertainty continues, the virtual asset market could also enter a deep downturn.

Trump’s cryptocurrency policy direction is also problematic. In the case of purchasing and stockpiling strategic assets such as Bitcoin, there are realistic limitations in that it must be purchased at the mountain price considering the US government’s insufficient budget. Nick Purkle, founder of Coin Bureau, said, “The Bitcoin price has not yet reached the bottom,” and “If the Trump administration’s tariff risk continues, there is a high possibility that Bitcoin will fall to $70,000, not $80,000.” Bitcoin, Ethereum, Ripple, Solana, and New York Stock Exchange ETF funds are flowing out en masse. It was

recently revealed that Bybit, one of the cryptocurrency (coin) exchanges, suffered the worst damage ever, amounting to 2 trillion won, due to a hack. The prices of major cryptocurrencies fell simultaneously following the news of Bybit’s large-scale hack. In particular, Bitcoin once plummeted to below $95,000 per coin. It is pointed out that a North Korean hacking organization was behind this. Bybit was hacked and lost $1.46 billion (about 2.1 trillion won) worth of coins. Ben Zhou, CEO of Bybit, announced on his social media that day, “One of Bybit’s offline Ethereum wallets was stolen.” The stolen Ethereum is equivalent to about 9% of Bybit’s total assets. Bybit also announced that it would pay a reward of 10% of the recovered funds to restore the damage.

This hack is the largest ever, surpassing the damage to the Japanese exchange Mt. Gox in 2014 (470 million dollars) and the Chinese exchange Polynetwork in 2021 (611 million dollars). Upon news of this incident, the price of Bitcoin collapsed below the $95,000 mark, and continued to trade at the $96,000 mark until the afternoon of the 23rd. Founded in 2018, Bybit has an average daily trading volume of over $36 billion (about 51.786 trillion won).

Decrypt noted the listing of Fold, a Bitcoin financial services company, on the Nasdaq as a positive sign. However, it added that Fold’s stock price (FLD) showed market instability by starting from $10 immediately after the listing and rising to $13, but then falling below $7 as of Friday’s closing price due to market confusion. Nevertheless, Fold’s listing is evaluated as indicating that the mainstreaming of the Bitcoin industry is still in progress. Decrypt also mentioned that DOG GO TO THE MOON (DOG), a representative Bitcoin-based meme coin, has expanded to the Solana network, and said that the expansion of the Bitcoin ecosystem could lead to market vitality.

However, it explained that opinions are divided even among Bitcoin maximalists, as DOG has fallen 72% from its all-time high in December last year. Decrypt predicted that in the short term, the $95,000 level will be the support line, and whether it breaks through the $100,000 level will act as the main resistance line, and predicted that institutional buying will gain strength again once the aftermath of the recent Bybit hacking incident calms down. However, it warned that if negative factors such as inflation and ETF fund outflow continue, the short-term downward pressure on Bitcoin could increase even more.

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