The crypto-friendly stance of US President Donald Trump may have acted as a “distraction or mirage” for Bitcoin rather than a true bullish catalyst, according to Quinn Thompson, CIO of Lekker Capital.

Thompson argues that while regulatory rhetoric appeared supportive, the broader market structure told a different story.

“Yes, there were positive developments like regulatory improvements, but there was also a massive extraction of billions of dollars from the industry, extreme capital misallocation into DAT companies, fraud, and scams,” he explained.

According to Thompson, the perception of a pro-crypto administration may have masked deeper structural weaknesses:

• Liquidity extraction from the ecosystem
• Poor capital allocation
• Speculative excess and fraud
• Overheating in certain sectors

In this view, political optimism may have delayed necessary market cleansing.

Thompson also suggested that under Kamala Harris, the industry would likely have remained under stricter regulatory pressure for years.

However, paradoxically, that pressure might have resulted in:

✔️ higher-quality infrastructure development ✔️ more disciplined capital deployment ✔️ stronger long-term foundations

If political optimism fades, Bitcoin could face:

⚠️ repricing of regulatory expectations ⚠️ reduced speculative premium ⚠️ renewed focus on fundamentals

The key question now: Was the rally built on sustainable structural growth — or on political narrative momentum?