Trump Pump? Bitcoin Breaks Records as Politics Meet Crypto

Official White House Photo by Joyce N. Boghosian.

Bitcoin recently smashed its previous record-high by surging to a whopping $112,000, which surprised everyone, including investors.

To make matters more interesting, the surge was tied to unexpected events like the Trump gala dinner for meme coin holders.

Some investors and spectators have called the surge a Trump Pump. No one can blame them since the context and timing strongly point to the POTUS's influence. Plus, Trump-related news has led to sharp declines and increases.

Politics' Influence on the Price of Bitcoin

Politics has long affected the price of Bitcoin.

In 2013, the Cyprus bank crisis encouraged Bitcoin to surge from $30 to $200 as people viewed the crypto as a haven. The 2017 Chinese crackdown on crypto exchanges also led to a 30% drop in this digital asset's price.

Significant declines were also experienced when the Securities and Exchange Commission (SEC) declared that Bitcoin is not a security.

The other notable political event that recently led to significant BTC price changes is the 2025 US-China trade war escalation. The fiasco first caused a sharp decline, but the situation reversed in May, courtesy of the investor move to Bitcoin amid political disruption.

To summarise, politics will always affect Bitcoin prices.

Above: BTC at daily intervals.

Factors Behind Bitcoin's Recent Record-Breaking Price

Politics have influenced Bitcoin prices over the years, but that's not the only factor that has led to the recent record-breaking surge. Many other aspects have contributed, including:

• Regulatory advancements: Critical shifts have occurred in the global regulatory landscape, driving the price of Bitcoin sky-high. The US Senate recently passed the GENIUS Act, which covers the first comprehensive regulatory framework for stablecoins. Many have taken this as a green light for broader crypto integration and invested more in Bitcoin.
• Institutional adoption: Many institutions that were once sceptical have changed their stance and embraced Bitcoin and other cryptocurrencies. Firms like JPMorgan Chase have gone above and beyond by allowing their clients to purchase Bitcoin. That has helped this crypto gain more legitimacy and popularity.
• Weaker USD value: The US dollar has weakened significantly in 2025 because of issues like trade policy uncertainty, fiscal policy concerns, and global inflation risks. Investors have reacted to this trend by shifting to digital assets, contributing to BTC's recent spike.

The Trump Pump: Myth or Fact?

Bitcoin prices have changed in tandem with Trump-related news more than once. For instance, in 2019, Trump tweeted that he was not a fan of BTC and other cryptocurrencies.

Shortly after, Bitcoin's price dropped – that's not a coincidence. That said, some crypto enthusiasts have linked the recent surge with Trump, a partial fact. After all, the Trump administration keeps introducing pro-crypto policies. But you shouldn't attribute everything to a Trump Pump because other factors have also contributed.

Final Thoughts

While the "Trump Pump" claim is becoming popular, Bitcoin's record-breaking price surge can be attributed to a complex web of factors. Politics has undoubtedly played a significant part and will continue to do so.

That is why you should closely monitor political developments and Trump's stance if you're an investor. If you notice shifts in policy, executive actions, and elections, adjust your investments accordingly.