The United States has regained its dominant position in the global cryptocurrency market, fueled by Donald Trump’s re-election as president and the growing popularity of cryptocurrency derivatives and exchange-traded funds (ETFs), according to a Bloomberg report.
The resurgence began with the successful launch of a Bitcoin ETF in early 2024, which attracted substantial institutional interest. This, coupled with Trump’s promise to make America the "cryptocurrency capital of the world," has significantly boosted market activity.
U.S.-based ETFs on Bitcoin recorded a combined daily trading volume of over $500 billion in 2024, with net capital inflows of approximately $36 billion. BlackRock’s iShares Bitcoin Trust (IBIT) became a standout success, earning recognition as one of the most successful ETFs in financial history.
Throughout 2023, Asia had emerged as the dominant force in the cryptocurrency market, benefiting from regulatory crackdowns in the U.S. under the Biden administration. However, Trump’s victory and his pro-crypto policies have reversed this trend.
Several indicators point to the U.S. reclaiming its leadership role, including:
Following the success of Bitcoin and Ethereum ETFs in 2024, the industry is optimistic about further ETF approvals under Trump’s administration. Applications for funds based on other cryptocurrencies, including Solana, XRP, Litecoin, and HBAR, have already been filed with the Securities and Exchange Commission (SEC).
Institutional participation has played a crucial role in shifting liquidity dominance toward the U.S. Analysts attribute this to the attractive regulatory environment and increased trust in American financial institutions.
The collapse of FTX and Alameda Research in 2022 caused a significant liquidity crisis. However, the market has since rebounded, driven by the optimism surrounding Trump’s presidency and the launch of ETFs. The depth of the cryptocurrency market, a key metric for liquidity, has recovered to pre-FTX levels.
As the U.S. solidifies its leadership in the cryptocurrency sector, the industry anticipates further developments, including the launch of new crypto-focused ETFs and potential regulatory reforms aimed at fostering innovation. Under Trump’s administration, the United States is poised to remain at the forefront of the global crypto economy.
December 2024, Cryptoniteuae