At a Glance
- Bitcoin fell 15% since the new administration began.
- Altcoins dropped between 70% to 90% in the same period.
- Gemini AI predicts XRP could deliver the highest returns through 2029.
- Why it matters: Investors are reassessing which crypto aligns with U.S. policy shifts.
The United States has seen a dramatic shift in its approach to digital assets since the inauguration of President Trump. A promise to make the country the world’s crypto capital was reiterated at a recent Davos forum, yet market data tells a different story. Bitcoin has slipped 15%, while many altcoins have fallen between 70% to 90%.
Market Impact Since Inauguration
The crypto market has reacted sharply to the new administration’s policies. Bitcoin’s decline is the most visible, but the broader altcoin space has suffered even more. The loss of confidence is reflected in the steep price drops across the sector.
- Bitcoin: 15% decline
- Altcoins: 70% to 90% decline
- Investor sentiment: heightened uncertainty
These figures underscore the volatility that has become the norm for digital assets under the current U.S. leadership.
Gemini’s Speculative Forecast
To understand how the market might evolve, an experiment was run with Gemini, a leading AI model. The prompt asked Gemini to choose between BTC, ETH, and XRP for the best performer until the end of Trump’s term.
Gemini’s answer was clear: XRP would likely achieve the highest percentage return between now and 2029. The model acknowledged several nuances:
- Bitcoin remains the safest bet.
- XRP is described as the most aggressive.
- Ethereum is positioned as a tech and utility play.
These insights provide a framework for investors looking to align with the anticipated regulatory environment.
XRP: The Catch-Up Candidate
Gemini identified XRP as the outlier among the three major cryptocurrencies. The reasoning hinges on regulatory changes that have lifted long-standing roadblocks.
- Legal uncertainty since 2020 has suppressed XRP’s price.
- The lawsuit against Ripple Labs has been settled.
- U.S. banks are now cleared to use XRP’s on-demand liquidity (ODL).
With these hurdles removed, XRP has the most “catch-up” growth potential. The AI emphasizes that the market is poised for a rebound driven by cleared regulatory pathways.
Bitcoin: National Reserve Status
Beyond speculation, Bitcoin’s status has been elevated by policy. In 2025, a new Strategy Bitcoin Reserve was established, making the asset a national policy tool.
- Bitcoin is now considered a strategic reserve.
- The administration has effectively put a government floor under its price.
- Institutional capital seeks exposure without regulatory risk.
Gemini referred to Bitcoin as the “King’s Guard” of the portfolio, highlighting its role as a stable anchor in a turbulent market.
Ethereum: Tech and Utility Play
Ethereum, while not the focus of regulatory change, benefits from deregulation more broadly. Gemini described it as the “tech and utility play,” suggesting that its protocol will thrive as regulatory clarity improves.
- Ethereum’s utility is expected to grow.
- Deregulation, rather than a specific executive order, will drive its success.
- Investors anticipate a steady increase in adoption.
This perspective aligns with broader market expectations that Ethereum will maintain a solid position.
Regulatory Landscape: CLARITY Act and Beyond
A key piece of legislation, the CLARITY Act, was mentioned as a potential driver of crypto policy. However, its progress is stalled.
- The Senate Banking Committee has shifted focus to housing legislation.
- The CLARITY Act faces a delay of at least several weeks, possibly months.
- The delay impacts the timeline for new regulations.
While the act is pending, the administration’s broader approach to deregulation remains a significant factor for all three cryptocurrencies.
Key Takeaways
| Crypto | Current Status | Future Outlook |
|---|---|---|
| Bitcoin | National reserve, 2025 | Stable, institutional backing |
| XRP | Regulatory roadblocks removed | High growth potential, 2029 |
| Ethereum | Tech play, deregulation | Steady utility growth |
Investors should monitor regulatory developments closely. The combination of policy shifts, legal settlements, and AI predictions points to a landscape where XRP could outperform its peers by the end of Trump’s term.
The crypto community’s attention remains fixed on how these policy changes will play out in the coming years, with particular interest in the potential rebound of XRP and the sustained role of Bitcoin as a strategic reserve.
