TRUMP Crypto Effect: Which Is Worse, the Internal or External War?

TRUMP Crypto Effect: A Market-Moving Force

When Donald Trump speaks, markets react. In his current presidency, this reaction has extended powerfully into the crypto world — whether through legislation, monetary policy pressure, or geopolitical clashes. Traders and investors now closely monitor every Trump move, knowing it could trigger volatility, influence regulation, or pump tokens like $TRUMP.

This article dissects the Trump Crypto Effect by dividing it into two battlefronts: internal wars (domestic policies and institutional conflicts) and external wars (global tensions and international policy). We’ll also touch on the rise of the TRUMP Phone and its potential to trigger a memecoin surge.

Internal War: Inflation, Jerome Powell, and the GENIUS Act

Trump’s recent actions are firing shots directly at the U.S. financial system — and the Federal Reserve.

War on Rate Cuts and Powell:

Trump has made it clear that he does not support Jerome Powell and believes the Fed is failing to cut rates fast enough. In his latest remarks, he stated that Powell was “more political than he is intelligent” — a blunt attack that questions the Fed’s independence. 

This monetary pressure creates uncertainty in traditional markets, but often favors crypto, especially Bitcoin, which thrives in periods of distrust in fiat institutions.

GENIUS Act & Stablecoins:

Trump recently hinted at supporting crypto-friendly regulation through what appears to be a push for the so-called GENIUS Act, designed to regulate stablecoins in a way that promotes U.S. dollar dominance on the blockchain.

While it's too early to tell whether this bill becomes law, the positive narrative around U.S.-backed crypto innovation boosts market confidence — particularly for Bitcoin, USD-backed stablecoins, and exchanges aligning with U.S. compliance standards.
 

Impact on Crypto:

✅ Positive for Bitcoin and U.S. stablecoins
✅ Encourages investment inflow amid rate-cut debates
⚠️ Volatility spikes around Trump-Fed statements

External War: Iran, Tariffs, and the EU-China Front

While internal tension is high, Trump’s foreign policy threats may present an even bigger wildcard for crypto.

Middle East Conflict — Iran and Israel

Trump’s vocal support for Israel and aggressive stance toward Iran risks escalating into broader regional conflict. As we've seen in the past, war tensions fuel crypto demand as a hedge — especially for Bitcoin and privacy coins.

But with war comes market fear, risk-off moves, and unstable short-term sentiment. A prolonged conflict could also increase oil prices and inflation — making rate cuts even less likely.

Tariff War Resurgence: China and the EU

Trump’s previous term was marked by a tariff war with China, and now he's signaling new tariffs against the EU, which could ignite trade tensions once again. For crypto, this triggers two key effects:

• Supply chain disruptions → economic slowdowns → higher crypto interest
• Global dollar fear → non-U.S. assets like Bitcoin become appealing

Impact on Crypto:

✅ Medium to long-term bullish for Bitcoin as a global hedge
⚠️ Short-term volatility due to war and inflation fears
❌ Bearish for altcoins during high-risk geopolitical phases

The TRUMP Phone: Meme Fuel or Tech Shift?

One of the most unexpected elements of the Trump crypto effect is the announcement of a TRUMP-branded phone, rumored to integrate security features and alternative media access. While the phone itself is unrelated to crypto infrastructure, it carries massive symbolic and memetic weight.

The launch could revive attention around the $TRUMP token — a memecoin already riding high on political hype. If the phone uses Solana as a base blockchain, like some recent political tokens, the price of $SOL may also benefit.

Expect social media-driven pumps and possible meme rallies, especially around the token’s utility or integration narratives — even if speculative.

Final Verdict: Which War Hits Crypto Harder?

So — which is worse for crypto: the internal war or the external war?

• External wars create sudden fear and volatility, but often lead to Bitcoin strength over time.
• Internal battles, especially around rate policy and stablecoin legislation, have a more lasting impact on the structure and future of the crypto market.

Strategic takeaway:

Traders should monitor both — but long-term holders may benefit from external chaos, while internal conflicts could reshape how crypto is regulated, adopted, and used in the U.S.

$TRUMP, $BTC, $ETH