Bitcoin’s climb to new all-time highs was undoubtedly fueled by institutional investment flowing in through ETFs and corporate treasuries. Big investors were buying crypto consistently from October 2024, betting on Donald Trump’s campaign promises, but they’ve stopped for two key reasons. First, the Senate failed to pass decisive crypto legislation. Second, Donald Trump has entered a dangerous standoff with the Fed Chair.
Proposed Senate amendments could make Trump’s promise to turn the US into a global crypto hub impossible to fulfill. But for institutions, the president’s attempts to control the Federal Reserve are even more alarming. Trump is obsessed with cutting interest rates, regardless of the inflation risks. We saw a similar scenario play out with Turkey’s president. Threats and the firing of several central bank governors there led to rate cuts at the president’s will, which ultimately crashed the lira’s value by 80%.
Trump’s policies didn’t just push Bitcoin higher; they also boosted gold as confidence in the dollar wavered. So, with crypto regulation up in the air, institutional money pivoted to gold, lifting its price by 60%—its best performance since 1979. This investment shift is visible even within crypto exchanges and gateways. On the veteran exchange BTCC, quarterly trading volume for gold tokens started the year at $300 million and ballooned to $2.74 billion by Q4. Analysts at the crypto gateway Cryptomus report a 38% year-over-year increase in companies converting their crypto revenue into the Pax Gold token.
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