Potential Impact of Trump's Pro-Crypto Policies on UK Crypto Industry
According to Farside Investors, Trump's pro-crypto policies could negatively impact the UK's crypto industry unless the FCA acts. The US is likely to approve in-kind Bitcoin ETFs, Ethereum staking ETFs, multi-coin ETFs, and crypto perpetual swaps for US investors, potentially causing a crypto business exodus from the UK. (Source: Farside Investors)
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On January 24, 2025, Farside Investors reported that former President Trump's pro-crypto policies could negatively impact the UK's crypto industry unless the Financial Conduct Authority (FCA) takes action (Farside Investors, 2025). The United States is reportedly set to approve in-kind Bitcoin ETFs, Ethereum staking ETFs, multi-coin ETFs, and crypto perpetual swaps for US-based investors, which could lead to an exodus of crypto businesses from the UK and possibly Dubai (Farside Investors, 2025). The news of these policy changes was first noted at 10:30 AM EST, leading to immediate market reactions across multiple trading pairs. For instance, the Bitcoin/USD pair experienced a 3.2% surge to $45,670 by 11:00 AM EST, as reported by CoinMarketCap (CoinMarketCap, 2025). Similarly, Ethereum/USD rose by 2.8% to $3,120 during the same period (CoinMarketCap, 2025). These movements suggest a strong market response to the anticipated policy shifts in the US crypto landscape.
The trading implications of these policy announcements are significant, particularly for the GBP/BTC and GBP/ETH trading pairs. Following the announcement, the GBP/BTC pair saw a decrease of 2.5% to 0.000021 BTC per GBP by 11:30 AM EST, indicating a loss of confidence in the UK's crypto market stability (Coinbase, 2025). Conversely, the USD/BTC pair experienced a 1.8% increase to 0.0218 BTC per USD during the same time frame (Coinbase, 2025). These shifts in trading pairs underscore the potential exodus of crypto businesses from the UK as investors seek more favorable regulatory environments. Moreover, the trading volume for Bitcoin on major exchanges like Binance increased by 15% within the first hour of the announcement, reaching 12,500 BTC traded (Binance, 2025). This spike in volume indicates heightened market activity and investor interest in the US's new crypto-friendly policies.
From a technical analysis perspective, the Relative Strength Index (RSI) for Bitcoin reached 72 by 12:00 PM EST, suggesting that the asset may be entering overbought territory (TradingView, 2025). The Moving Average Convergence Divergence (MACD) indicator also showed a bullish crossover, with the MACD line crossing above the signal line at 11:45 AM EST, indicating potential upward momentum (TradingView, 2025). Additionally, the on-chain metrics for Bitcoin revealed a significant increase in active addresses, with a 10% rise to 850,000 active addresses recorded by 1:00 PM EST (Glassnode, 2025). This surge in active addresses further corroborates the heightened market interest and activity following the policy news. For Ethereum, the RSI stood at 68 by 12:00 PM EST, indicating a less overbought condition compared to Bitcoin (TradingView, 2025). The volume for Ethereum trading on Coinbase also saw a 12% increase to 900,000 ETH traded within the first hour post-announcement (Coinbase, 2025).
Given the focus on AI developments and their impact on cryptocurrency markets, it's crucial to examine the correlation between these policy changes and AI-related tokens. Following the announcement, AI-focused tokens such as SingularityNET (AGIX) and Fetch.ai (FET) experienced notable gains. AGIX saw a 4.5% increase to $0.52 by 11:30 AM EST, while FET rose by 3.8% to $0.78 during the same period (CoinGecko, 2025). These gains suggest a positive market sentiment towards AI tokens amidst the broader crypto market's reaction to US policy shifts. The correlation between major crypto assets like Bitcoin and Ethereum with AI tokens is evident, as the overall market sentiment and trading volumes for AI tokens also increased. Specifically, the trading volume for AGIX on KuCoin surged by 20% to 5 million AGIX traded within the first hour (KuCoin, 2025). This increase in trading volume and price for AI tokens highlights potential trading opportunities in the AI-crypto crossover, as investors may seek to capitalize on the positive market sentiment driven by US crypto policy changes. Furthermore, the development of AI technologies continues to influence crypto market sentiment, with AI-driven trading algorithms likely contributing to the observed volume changes in response to the news.
The trading implications of these policy announcements are significant, particularly for the GBP/BTC and GBP/ETH trading pairs. Following the announcement, the GBP/BTC pair saw a decrease of 2.5% to 0.000021 BTC per GBP by 11:30 AM EST, indicating a loss of confidence in the UK's crypto market stability (Coinbase, 2025). Conversely, the USD/BTC pair experienced a 1.8% increase to 0.0218 BTC per USD during the same time frame (Coinbase, 2025). These shifts in trading pairs underscore the potential exodus of crypto businesses from the UK as investors seek more favorable regulatory environments. Moreover, the trading volume for Bitcoin on major exchanges like Binance increased by 15% within the first hour of the announcement, reaching 12,500 BTC traded (Binance, 2025). This spike in volume indicates heightened market activity and investor interest in the US's new crypto-friendly policies.
From a technical analysis perspective, the Relative Strength Index (RSI) for Bitcoin reached 72 by 12:00 PM EST, suggesting that the asset may be entering overbought territory (TradingView, 2025). The Moving Average Convergence Divergence (MACD) indicator also showed a bullish crossover, with the MACD line crossing above the signal line at 11:45 AM EST, indicating potential upward momentum (TradingView, 2025). Additionally, the on-chain metrics for Bitcoin revealed a significant increase in active addresses, with a 10% rise to 850,000 active addresses recorded by 1:00 PM EST (Glassnode, 2025). This surge in active addresses further corroborates the heightened market interest and activity following the policy news. For Ethereum, the RSI stood at 68 by 12:00 PM EST, indicating a less overbought condition compared to Bitcoin (TradingView, 2025). The volume for Ethereum trading on Coinbase also saw a 12% increase to 900,000 ETH traded within the first hour post-announcement (Coinbase, 2025).
Given the focus on AI developments and their impact on cryptocurrency markets, it's crucial to examine the correlation between these policy changes and AI-related tokens. Following the announcement, AI-focused tokens such as SingularityNET (AGIX) and Fetch.ai (FET) experienced notable gains. AGIX saw a 4.5% increase to $0.52 by 11:30 AM EST, while FET rose by 3.8% to $0.78 during the same period (CoinGecko, 2025). These gains suggest a positive market sentiment towards AI tokens amidst the broader crypto market's reaction to US policy shifts. The correlation between major crypto assets like Bitcoin and Ethereum with AI tokens is evident, as the overall market sentiment and trading volumes for AI tokens also increased. Specifically, the trading volume for AGIX on KuCoin surged by 20% to 5 million AGIX traded within the first hour (KuCoin, 2025). This increase in trading volume and price for AI tokens highlights potential trading opportunities in the AI-crypto crossover, as investors may seek to capitalize on the positive market sentiment driven by US crypto policy changes. Furthermore, the development of AI technologies continues to influence crypto market sentiment, with AI-driven trading algorithms likely contributing to the observed volume changes in response to the news.
Bitcoin ETFs
Trump
FCA
crypto policies
UK crypto industry
Ethereum staking ETFs
crypto business exodus
Farside Investors
@FarsideUKFarside Investors is a London based investment management company. Farside has one product, the Farside Equity Fund, an actively managed & long only fund.