Altcoins Surge as Investors Bet on Trump’s Crypto-Friendly Agenda

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Crypto investors might be forgiven for thinking this week feels like a throwback to 2024—a year filled with rallies across a wide array of coins and tokens.

In the last five trading days, many altcoins experienced impressive double-digit gains. According to data from S&P Global Market Intelligence, popular utility token Solana (CRYPTO: SOL) rose nearly 15% during this time—although this was a modest increase compared to other cryptos. For example, Chainlink (CRYPTO: LINK) surged by 22%, while Litecoin (CRYPTO: LTC) skyrocketed by 30%. Aave (CRYPTO: AAVE) also ended the week up by 16%.

Coins and Tokens Lead the Market As any crypto enthusiast can attest, coins and tokens generally trade in sync, with many following Bitcoin (CRYPTO: BTC) as the market leader. Bitcoin made a strong start this week, soaring from under $90,000 on Monday morning to nearly $106,000 (close to its all-time high) before easing back a little by late Friday afternoon.

Optimism is high across the board for cryptocurrencies, and much of this sentiment can be attributed to the political climate, with Donald Trump about to begin his second term as president.

Trump has pledged to introduce more crypto-friendly policies than those seen under the Biden administration, which at times has shown a less favorable stance toward the industry. Among the potential moves under consideration is a strategic Bitcoin reserve—something Trump once described as a “permanent national asset to benefit all Americans.” If this reserve were created, it could significantly boost Bitcoin and, by extension, altcoins that follow its lead.

However, it’s worth noting that not everyone in the investment community believes this idea is sound. Anthony Georgiades, General Partner of Innovating Capital, has voiced concerns. In an interview with Coindesk, Georgiades said that such a move could be akin to the “nationalization of digital assets,” which could undermine the decentralized nature of cryptocurrencies—a feature that many investors find appealing. He warned that it might erode efforts to maintain decentralization over time.

Rallying Too Quickly? This most recent rally has raised some doubts for me. It feels like investors are betting on Trump’s administration to implement all of the rumored crypto-boosting measures. While they may be in a good position to do so—especially with the Republicans controlling both chambers of Congress—it’s important to remember that there’s often a wide gap between campaign promises and actual policy implementation. Caution is advised for buyers in the coming days.

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