Trump's policies have a series of impacts! Bitcoin is fluctuating, 401K opens up to encryption assets, and the Tornado Cash ruling raises privacy controversies.

Former U.S. President Donald Trump has recently become the focus of the global financial and crypto market with a series of policies and statements. From the dismissal of the head of the U.S. Bureau of Labor Statistics, comments on tariffs, to the signing of two executive orders directly related to Crypto Assets, the market has shown significant short-term Fluctuation. At the same time, the news of Tornado Cash developers being convicted has sparked intense discussions within the crypto privacy and Decentralization community.

Trump's words and actions continue to influence Bitcoin trends

Two weeks ago, the key support level for Bitcoin (BTC) that the market was paying attention to, $116,000, has been breached, with prices once touching $112,000, and then rebounding to the $116,000–$117,000 range. Unlike before, the support strength at this price level seems to be stronger now.

On August 15, Trump suddenly fired the director of the U.S. Bureau of Labor Statistics, Erika McEntarfer, triggering panic in the market and causing Bitcoin to plummet rapidly. Although market sentiment gradually recovered over the weekend, the incident highlighted Trump's direct influence on the market.

Market Effects of Tariff Statements and Executive Orders

In an interview on August 12, Trump's latest statements on tariff policies triggered a "knee-jerk reaction" drop in the market, but it quickly rebounded. Historical data shows that while Trump's tariff remarks can create short-term fluctuations, they have limited impact on the long-term trend.

On August 14, Trump signed two executive orders highly related to Crypto Assets:

Financial institutions are prohibited from refusing to provide services based on political or legitimate business activities — this is seen as the end of the "Action 2.0" style crackdown on services related to Crypto Assets.

Allowing 401K and other retirement plans to invest in Crypto Assets - opening up a channel for crypto investments for millions of retirement accounts in the U.S. could bring potential capital inflows.

Market analysis suggests that these policy changes may not only affect the allocation structure of funds but also reflect a shift in the Trump administration's attitude towards crypto assets.

Tornado Cash Ruling Sparks Privacy and Regulatory Controversy

The latest ruling on the open-source privacy protocol Tornado Cash, which is not directly related to Trump but has also drawn attention, has caused a stir. Its developer, Roman Storm, was convicted of conspiring to operate an unlicensed remittance business, which is seen as a significant blow to decentralization privacy tools.

This case follows the admission of similar charges by the co-founder of another privacy tool, Samourai Wallet, indicating that regulators are intensifying their enforcement efforts against encryption anonymous transactions.

The industry is concerned that such rulings may have long-term negative impacts on the development of decentralized applications (dApps) and privacy protocols.

Monetary Policy and Market Outlook

On the same day, the White House announced the nomination of Stephen Millan as a temporary member of the Federal Reserve, which the market generally interprets as a shift towards dovish monetary policy, with expectations for interest rate cuts rising.

Analysts point out that if loose policies are combined with the new regulations on 401K encryption investments, it may provide medium to long-term support for Bitcoin and other Crypto Assets. However, in the short term, the market still needs to digest the combined effects of tariff policies, regulatory actions, and macroeconomic data.

Conclusion

Trump's policies and statements once again demonstrate the enormous influence political figures have on the crypto market. From the fluctuations in Bitcoin prices, new regulations for 401K investments, to the privacy controversies sparked by the Tornado Cash ruling, the market is at a critical moment where policy and regulation intertwine. Investors need to closely monitor the dynamics of American politics and regulatory trends, as these factors will continue to shape the landscape of crypto assets in the coming months.