The possibility of a market crash surrounding Trump’s potential 2025 inauguration stirs concern over Bitcoin
As the upcoming inauguration of Donald Trump as the U.S president on January 20 approaches, analysts hold various perspectives on Bitcoin’s future.
A recent report by Forbes suggests that the event might trigger a crash in BTC due to what is perceived as an inflated market with exaggerated expectations based on pro-crypto policies that may not come to fruition.
Referencing K33 Research’s December market analysis, it was mentioned that the market could overestimate the impact of policy changes leading up to the inauguration.
Anticipating a BTC crash during Trump’s inauguration
This cautious sentiment was echoed by Arthur Hayes, the Co-founder of BitMEX and a prominent crypto investor. In a newsletter from December, Hayes cautioned that the inauguration could witness a significant sell-off in the crypto markets.
Furthermore, historical trends indicate that January tends to be a challenging month for BTC. If patterns repeat themselves, BTC might face imminent risks in the near future.
Despite the warnings, some members of the community anticipate crucial policy adjustments, notably the establishment of a strategic reserve for BTC. The creation of this reserve could potentially serve as a primary driver for BTC’s price movements in 2025.
Nevertheless, the Coinbase Premium Index signals that the selling pressure experienced in December could extend into early 2025 for the cryptocurrency.
Typically, BTC’s recovery aligns with increased demand from Coinbase, particularly from U.S investors. The current data indicating low demand implies that a significant BTC recovery might not be imminent, at least for now.