According to a recent analysis by Nansen, for now the policies of the new USA President Donald Trump are benefiting the crypto markets, but only indirectly.
The analysis indeed reveals that things are a bit different from how they were expected and promised, but at the same time, they are still generally helping the USA economy and the crypto markets.
Summary
The policies of Donald Trump
The analysis dedicates an entire long chapter to the policies of Donald Trump, just over ten days after his inauguration as the new President of the USA.
Such policies are defined as “non crypto” because its first executive actions and its various public statements are characterized by a generic pro-business approach, and not specifically aimed at the crypto markets.
In particular, Nansen’s analysis focuses on deregulation and incentives for private sector activity.
It highlights how the new administration is trying to support some key sectors defined as “priority,” such as artificial intelligence, fossil energies, the automotive industry, defense, manufacturing, and within these, it also includes the crypto sector and finance in general.
However, these are not subsidy policies, but aimed at facilitating consortia and private sector initiatives by removing regulatory obstacles and allowing preferential tax regimes. In particular, it mentions the now-famous “Progetto Stargate“, dedicated especially to private companies dealing with artificial intelligence.
However, Nansen’s analysis seems to focus more on deregulation policies, and in particular on some measures initiated in the first week, including the lifting of the moratorium on the construction of LNG export facilities.
They write:
“These initiatives and their overall impact are positive for the U.S. economy, even if some will likely take years to have an impact on the economy, despite the intellectual competition from geopolitical powers like China”.
Trump and the bull crypto markets
The analysis highlights how the Crypto Executive Order released on Thursday was followed only by a disappointing price action by Bitcoin and the rest of the crypto market.
Indeed, he suspects that the classic dynamic of “buy the rumors, sell the news” has occurred, effectively disappointing many novice investors and speculators.
It states that the crypto markets now seem satiated, to the point of becoming more reactive to negative sentiment rather than to positive news.
In this regard, however, he adds that volatility could generate some buying opportunities at more interesting price levels, and that instead there is a need for good news to become bull again, such as those related to the regulatory change that exempts banks from depositing capital for the custody of criptovalute.
Finally, they believe that the impact on the crypto markets of the recent Fed decisions has been substantially neutral.
The analysis of Nansen
This analysis by Nansen was prepared by the Principal Research Analyst of Nansen, Aurelie Barthere.
Nansen is a well-known blockchain analytics company, and specifically, Barthere’s goal was to explore the main narratives currently dominating the crypto markets.
In addition to the narratives related to Trump, it also identified those related to the Chinese AI project DeepSeek, which triggered a strong sell-off of tech stocks on the US exchanges, the Fed’s stance on rate cuts, and the return of the “buy-the-dip” narrative.
Regarding AI, according to Barthere, solid gains in technology stocks would be necessary to restore confidence, given that the narrative concerning artificial intelligence in the markets has weakened.
Regarding the buy-the-dip hypothesis, or taking advantage of the price drop to buy, the analyst from Nansen points out that, for example, BTC has shown very superficial and brief intraday sell-offs, so much so that it then recovered. For this reason, he states that the volatility could generate some good buying opportunities in the coming days, at more interesting levels than the current ones.
Moreover, it states that the crypto market in the medium to long term still seems bullish, so even if the short-term sentiment seems negative, the longer-term sentiment appears to have remained positive.
In particular, from this point of view, it highlights the increasing adoption of cryptocurrencies by institutions, and the fact that simpler regulation for the banking distribution channel will allow a new category of clients to enter the crypto markets.
