Political and geographical factors that affect the encryption market – Trump, musk, high risks and the silk road

Hodlx Guest Post Send your message

The encrypted currency industry enters a new stage of development amid a series of controversial events – From prominent political data and promises to amnesty for certain “icons” of the Darknet community to the course discussed in the new management about the dangerous Blockchain sector reforms.

In this article, I will share my opinion on how the events related to the inauguration of Donald Trump affect the encryption market, what initiatives that can be implemented after February 20, 2025 and what lessons that can be learned from years of interaction between the state and digital assets.

Trump and the Republicans – Monopolic monopoly and division risk

According to some data, a unique situation is currently detected as Republicans have gained the majority in both Congress and Senate, as well as in the House of Representatives.

This gives them the ability to pass the laws more quickly, confidently and pressure initiatives, including those related to the regulation of cryptocurrencies, large technology and more.

However, the monopoly of power involves the danger of internal division if parts of the party find that the path is very radical or dangerous to its components.

The role of Elon Musk and potential conflicts

Elon Musk is a prominent character whose statements affect the encryption markets, jius and global business.

Some commentators suggest the following.

• Musk participates in political games – By supporting Trump, Musk may participate in political maneuvers that can lead to serious problems for him, including investigations or legal prosecutions from other countries to the United States.
• Virgin interests – IThe interests of Fusk and Trump diverges at some point, musk risk becoming a goal, which can strongly affect all its projects.
  • Market fluctuation – The collapse of “musk currencies” or a sudden shift in market morale may lead to a global wave of confidence in encryption, especially between investors from retail and institutions.

Pardon the founder of the dark network

President Donald Trump has signed an executive and unconditional pardon of Russians, Olbricht, the creator of the Darknet Marketplace Road, who was serving a life sentence.

Many fear that such procedures by the authorities can once again form a media narration to equal “coded currency with illegal operations, fraud and fraud.”

This reputation hindered the institutional recognition of Bitcoin and other cryptocurrencies in early 2010, and may negatively affect it now.

As a result, here are the possibilities that can occur.

• The reputation damage to the encryption market – The encryption market can suffer to hit reputation.
• Founding investors are retreating – Founding investors, we are already cautious about the fluctuations and previous accidents, may back down again.
• User fears – Some users may fear that continuous legal issues and repressive measures will threaten national security (as shown in previous KYC/AML discussions).

Hurricane criticism and mixers – Double criteria or the necessary control

Tornado Cash allows transactions on the ethereum network, which blocks the path between the sender and the future.

This increases privacy but also provides risks, like the following.

• Illegal use – These services are often used for illegal money laundering, including from the approved judicial states.
• Sanctions by OFAC (US Office to control foreign assets) – OFAC has imposed sanctions on Tornado Cash, considering it as a tool for money laundering to circumvent the sanctions.

Fittalek Burin stated that after the release of Ross Olbrecht, the following goals may be members of Tornado Cash Alexey Pertsev and Roman Storm.

If the similar indulgence is shown as the creator of the largest market for Darknet, it will raise additional doubts that the new authorities encourage gray plans.

The risks of the encryption market and future scenarios

1. A new wave of FUD (fear, uncertainty and doubt)

• Permanent pardon for encryption market icons – A possible pardon for the main numbers in the underground encryption markets can lead to negative media reactions.
• General perception – Society may only see an encrypted currency as a tool for criminal activities and money laundering.

2. Organizing pressure

• Increase control – With the strengthening of the Republican power and societal disputes, the organizers may start imposing tougher controls on encryption operations.
• New legislation – New laws can appear that require user data detection.

3. The effect of the main characters

• Market fluctuation – If the main players continue to change their views suddenly, or pump or empty some assets, the volatility may increase sharply.
• Political errors – The unsuccessful political maneuver can lead to lawsuits or dismissal, which will have immediate repercussions in the entire technology sector and affect encryption.

4. The scenario of collapse or restructuring

• Brand re -economy as shadow – If the cryptocurrency is described again as part of the shadow economy, the institutional capital may decrease, and the market can enter the winter encryption.
• Industry cleansing – On the other hand, some analysts believe that after every such period, there is a cleansing of fraud projects, and the industry becomes stronger in the new session.

conclusion

The situation surrounding the encryption is still contradictory.

On the one hand, there are signs of collective dependence on digital assets.

On the other hand, political factors, prominent criminal issues and the signs of scandalous figures can return to the return of the market to a state of complete lack of confidence.

High risks in the political arena – Toxic issues such as Silk Road and Tornado Cash, as well as the potential conflicts that involve Elon Musk – Increased caution.

In the coming months, it is not impossible to witness major organizational changes in the United States capable of influencing the global encryption market.

Yaroslav Kalynycinko is the head of marketing in Generis Web3 Agency An expert in promoting encryption and innovative digital solutions.