US President Trump's Policies Boost Demand for Riskier Assets, Putting Crypto into the Limelight

The US BTC-spot ETF market registered $1,757.7 million of total net inflows in the week after $1,862.9 million of total net inflows the previous week.

The US BTC-spot ETF market saw $1,757.7 million in total net inflows last week, following the $1,862.9 million recorded the prior week.

Demand for riskier assets was boosted by US President Trump's policies, with recent executive orders bringing crypto into focus.

Strategic Bitcoin Reserve Sparks Debate

President Trump highlighted the need for the Fed and other central banks to cut rates during his speech at the World Economic Forum on Thursday, January 23. A more dovish Fed rate path could lead to lower borrowing costs, boosting demand for riskier assets like BTC.

On Thursday, January 23, President Trump signed an executive order (EO) to establish the Presidential Working Group on Digital Asset Markets. The group was tasked with assessing the creation of a strategic national digital assets stockpile.

The order did not specify which cryptocurrencies would be included in the stockpile, but it marked a significant step toward recognizing crypto as a strategic reserve asset.

Senator Cynthia Lummis's Bitcoin Act, which could pave the way for a US Strategic Bitcoin Reserve (SBR), was also in the spotlight. National strategic reserve assets require approval from Congress, the Fed, the US Treasury Secretary, and the President.

The Bitcoin Act proposes that the US government acquire one million BTC over five years, which would be subject to a mandatory 20-year holding period. On Friday, Senator Lummis was appointed Chair of the Senate Banking Subcommittee on Digital Assets.