Trump's support for cryptocurrencies has caused a chain reaction, with a large number of radical crypto companies flooding into the stock market and an increase in risk appetite

On December 17, according to the New York Times, as US President Trump publicly embraces cryptocurrencies, his policies and personal statements are profoundly changing the structure of US capital markets, and a large number of new listed companies with crypto assets as the core have emerged rapidly, while also amplifying market risks. Trump, who called himself the "first crypto president", ended the previous strong regulation of the crypto industry after taking office, promoted pro-crypto legislation, and publicly endorsed crypto investment on many occasions, and even personally launched a meme coin called TRUMP. This series of moves has brought the originally relatively marginal crypto industry into the mainstream financial system quickly. In this context, more than 250 listed companies have started to incorporate cryptocurrencies into their balance sheets this year, attracting investors' attention by amassing large amounts of digital assets such as bitcoin.
Some companies even lack a mature main business, and their core "business model" is to hold crypto assets and bet on their prices to rise. The analysis pointed out that, unlike previous crypto bull markets that were mainly limited to exchanges and retail investors, crypto risks are spreading to a wider range of investors through the stock market under the impetus of Trump's policies. The exit of tighter regulations, the strengthening of political endorsements, and the structural "crypto" of listed companies are prompting investors to take on higher volatility and valuation risks.