Under Trump, cryptocurrency is set to go mainstream – but that won’t make it any safer for investors | Larisa Yarovaya

His easing of regulations could leave many unprotected from financial manipulation, misconduct and bursting bubbles

As the United States prepares for Donald Trump's inauguration on 20 January, all eyes are on the cryptocurrency markets. After Bitcoin's price reached $100,000 (81,917) for the first time in history in December 2024, the cryptocurrency community is eagerly anticipating Trump's fulfilment of his campaign promise to make the US the crypto capital of the planet". Some analysts predict that Bitcoin's price could range between $78,000 and $250,000 in 2025.

Blockchain technology has numerous applications beyond crypto payments - for example, in supply chain and logistics. But it is the price surges of Bitcoin, Ethereum and meme coins" that capture the majority of public attention. Speculative demand and the potential for abnormal returns, which are rarely found in other financial markets, remain key drivers of their prices.

Larisa Yarovaya is an associate professor of finance and director of the Centre for Digital Finance at Southampton Business School