The center of the global cryptocurrency market is shifting back to the United States as 2025 approaches, thanks to a combination of political momentum and growing financial products that cater to crypto investors. The return of Donald Trump as a strong contender for the U.S. presidency and the rising popularity of Bitcoin exchange-traded funds (ETFs) have combined to spark a crypto boom, particularly in American markets. This surge in demand is reshaping how Bitcoin is traded, making the U.S. once again a key player in the digital asset world.
Why Is the U.S. Leading the Crypto Market Again?
Trump’s 2024 Campaign and Crypto Enthusiasm
In recent months, former President Donald Trump’s reelection campaign has breathed new life into the U.S. crypto market. Trump has promised to make the United States the global leader in the cryptocurrency sector, rallying crypto enthusiasts and investors who see his presidency as a pro-business environment for digital assets. This enthusiasm has led to a surge in crypto trading and investment, with market players betting on the positive impact of Trump’s policies.
While Trump’s agenda focuses on deregulation and creating a more business-friendly environment, it stands in stark contrast to the more stringent crypto regulations put in place during President Biden’s administration. Many crypto investors and firms that felt stifled by the regulatory pressure under Biden now see Trump’s return as an opportunity to reignite growth and innovation in the U.S. crypto space.
Bitcoin ETFs Spark a Trading Frenzy
Another major factor behind the U.S.’s increasing dominance in the crypto market is the successful launch of U.S. Bitcoin exchange-traded funds (ETFs) starting in early 2024. These financial products, which allow investors to buy Bitcoin without directly holding the cryptocurrency, have quickly gained traction among institutional investors and retail traders alike.
Bitcoin ETFs are seen as a safer, more accessible way to invest in Bitcoin, especially for those who might be hesitant about the risks involved in buying and storing cryptocurrency directly. The launch of these funds has created a fresh wave of trading activity, with more investors flocking to platforms that offer Bitcoin ETFs.
A Shift in Crypto Trading: U.S. Dominates Liquidity
Bitcoin Trading Volume Shifts to U.S. Hours
As the demand for Bitcoin and other digital assets rises, the U.S. has regained a significant share of the global crypto market. According to data from crypto analytics firm Kaiko, the share of daily Bitcoin trading against the U.S. dollar during U.S. market hours has jumped from 40% in 2021 to around 53% in 2024. This shift represents a major change in where Bitcoin trading is happening, with American investors and institutions now accounting for a larger slice of the global market.
The increase in trading volume during U.S. hours is a clear indication of the growing dominance of U.S. markets in determining Bitcoin’s price and liquidity. Institutional investors—big banks, hedge funds, and corporate players—are more active than ever in the crypto market, and their involvement has driven liquidity toward the U.S., where they feel the most secure and supported by favorable policies.
Why U.S. Liquidity is Key for Global Crypto Markets
Liquidity is the lifeblood of financial markets, and the U.S. is currently at the center of this crypto liquidity revolution. As more institutional players move into the crypto space, the demand for U.S.-based crypto financial products like Bitcoin ETFs and derivatives contracts has skyrocketed. This influx of institutional capital has made the U.S. the leading source of market liquidity for Bitcoin and other digital assets.
“Liquidity dominance,” a term used by Thomas Erdösi, Head of Product at CF Benchmarks, highlights how American investors and institutions now control a significant portion of the global Bitcoin market. This dominance allows U.S. markets to set the benchmark price for Bitcoin, influencing its value worldwide. In simple terms, the more trades that happen in the U.S., the more influence the U.S. has over the global price of Bitcoin.
What Does This Mean for the Future of Crypto?
Impact on Global Crypto Markets
For the past year, it seemed like Asia, particularly China, had taken the lead in the global crypto market, largely due to the crackdown on crypto firms in the U.S. under the Biden administration. During this period, many Asian nations became the new hubs for crypto trading, with China’s ban on crypto mining and trading pushing many businesses to relocate to more crypto-friendly jurisdictions.
However, with the growing popularity of U.S. Bitcoin ETFs and Trump’s pro-crypto rhetoric, the U.S. is quickly regaining its position as the epicenter of crypto trading. The growing institutional involvement in the U.S. has made American exchanges and trading platforms more influential in determining the direction of the global market.
The shift in liquidity dominance also signals that U.S. policymakers, under a potential second Trump administration, may further ease crypto regulations, making it easier for financial institutions to invest in and trade digital assets.
U.S. Investors Driving the Crypto Boom
The increased participation of U.S. investors—both institutional and retail—has been a major factor in Bitcoin’s meteoric rise, with Bitcoin crossing the $100,000 threshold for the first time in 2024. Institutional investors, particularly in the form of hedge funds, venture capital, and large asset managers, are flocking to digital-asset markets in increasing numbers, helping to push Bitcoin’s price higher. Retail investors, who can now invest in Bitcoin via ETFs, have also played a role in this surge.
The U.S. is now not just a market for crypto but also a key player in shaping the future of the global digital economy. With institutions pushing for regulatory clarity and a more stable environment for crypto investments, it’s clear that American demand is driving a large portion of the growth in digital assets.
Will the Trend Continue?
As the 2024 U.S. election approaches, the future of the crypto market remains tied to political developments. If Donald Trump wins a second term and follows through with his pro-crypto agenda, the U.S. could see even more growth in its digital-asset markets. Conversely, if the regulatory environment shifts again under a new administration, the market could face new challenges.
One thing is clear, however: the U.S. is once again leading the way in the world of crypto, thanks to a combination of political backing, regulatory clarity, and the rise of institutional crypto products like Bitcoin ETFs. Whether you’re a seasoned investor or a newcomer to the space, the American crypto market will likely continue to be the most important market for the foreseeable future.
Conclusion
The resurgence of U.S. dominance in the crypto market is being driven by both political factors and financial products that cater to institutional investors and everyday traders. With former President Donald Trump’s focus on making America the leader in crypto, and the explosive demand for Bitcoin ETFs, the U.S. is once again taking center stage in the world of digital assets. As more institutional investors flood into the space, it’s clear that the American market will continue to play a crucial role in the future of crypto.
I am Aparna Sahu
Investment Specialist and Financial Writer
With 2 years of experience in the financial sector, Aparna brings a wealth of knowledge and insight to Investor Welcome. As an accomplished author and investment specialist, Aparna has a passion for demystifying complex financial concepts and empowering investors with actionable strategies. She has been featured in relevant publications, if any, and is dedicated to providing clear, evidence-based analysis that helps clients make informed investment decisions. Aparna holds a relevant degree or certification and is committed to staying ahead of market trends to deliver the most up-to-date advice.