Trump's Support for Cryptocurrency Triggers Chain Reaction, Leading to Influx of Radical Crypto Companies into Stock Market, Increased Risk Appetite

BlockBeats News, December 17th, according to The New York Times, as US President Trump publicly embraces cryptocurrency, his policy and personal stance are profoundly changing the structure of the US capital market, with a large number of new companies with cryptocurrency at their core quickly emerging, while also amplifying market risks.

Trump has dubbed himself the "First Cryptocurrency President" and, since taking office, has ended the previous strong regulation of the cryptocurrency industry, pushed for pro-crypto legislation, publicly endorsed cryptocurrency investments multiple times, and even personally launched a meme coin called TRUMP. This series of actions has rapidly brought the relatively niche cryptocurrency industry into the mainstream financial system.

Against this backdrop, more than 250 publicly traded companies this year have begun to incorporate cryptocurrency into their balance sheets, attracting investor attention by accumulating significant amounts of Bitcoin and other digital assets. Some companies even lack a mature core business, with their core "business model" being to hold cryptocurrency and bet on its price increase.

Analysis points out that, unlike past cryptocurrency bull markets mainly limited to exchanges and retail investors, under the impetus of Trump's policies, cryptocurrency risk is now spreading to a broader set of investors through the stock market. Regulatory tightening exits, political endorsements, and the structural "cryptofication" of publicly traded companies are forcing investors to bear higher volatility and valuation risks.