Trump Proposes $1.5 Trillion Defense Surge Amid Geopolitical Tensions – Crypto Markets Watch
President Trump's unprecedented $1.5 trillion defense budget proposal for 2027 marks a 67% increase from 2026 levels, triggering market uncertainty. The announcement follows recent US military operations in Venezuela and escalating rhetoric around Greenland's acquisition. Such geopolitical volatility historically correlates with Bitcoin (BTC) and ethereum (ETH) price surges as hedge assets.
Defense-linked crypto projects like SAGA (military supply chain AI) and AGI (defense AI) saw immediate 5% price jumps post-announcement. Stablecoins DAI and USDT typically benefit from capital flight during conflict speculation, while privacy coins XMR and ZEC remain watchlisted.
The proposal coincides with Marco Rubio's warnings about Cuban crypto sanctions evasion – a potential tailwind for surveillance coins like TRX and XRP. Oil-backed crypto initiatives (Venezuela's PETRO) may face US countermeasures, creating arbitrage opportunities on exchanges like Binance and Bybit.