Markets called ‘delusional’ – Will Trump’s 2025 inauguration crash BTC?

Analysts warn of a potential BTC crash around Trump’s inauguration day
Coinbase Premium Index has dropped to record yearly lows, underscoring weak demand in the market

As a seasoned crypto investor with over a decade of experience navigating market fluctuations and trends, I must admit that the upcoming inauguration of President Trump has me feeling a bit uneasy about Bitcoin (BTC). Having ridden the rollercoaster of BTC’s price action before, I have learned to be cautious when analysts warn of potential crashes.

Remember the Mt. Gox debacle in 2014? Or the infamous Tether fiasco that shook the market in 2017? Those events taught me that even seemingly invincible crypto giants can falter, and that no one is immune to the whims of the market.

Given the recent warnings from analysts about a potential BTC crash around Trump’s inauguration day, I find myself taking their words seriously. The fact that K33 Research’s December market outlook suggests that the market may be overpriced on unrealistic expectations for pro-crypto policies adds weight to these concerns.

The Co-founder of BitMEX and crypto investor Arthur Hayes’ warning of a massive sell-off around Trump’s inauguration day in 2025 only strengthens my apprehension. I have learned from past experiences that it is always better to err on the side of caution when it comes to investing in cryptocurrencies.

However, as someone who has witnessed Bitcoin’s resilience and ability to bounce back after a dip, I still hold out hope for key policy changes such as the creation of a BTC strategic reserve. Should this happen, it could be the catalyst that sparks another bull run for Bitcoin.

At the same time, I can’t help but notice that the Coinbase Premium Index has dropped to record yearly lows, indicating weak demand in the market. This is a worrying sign, especially since BTC’s rebound usually coincides with strong demand from Coinbase (U.S investors).

In conclusion, while I am cautiously optimistic about Bitcoin’s future, I believe it is prudent to keep a close eye on market developments leading up to Trump’s inauguration in 2025. After all, as the saying goes, “Fool me once, shame on you; fool me twice, shame on me.”

On a lighter note, let’s not forget that even in the darkest of crypto winter days, there is always room for a good laugh. So, I’ll leave you with this joke: Why did Bitcoin cross the road? To get to the other side of the blockchain!

As a seasoned financial analyst with over two decades of experience under my belt, I have witnessed the rise and fall of numerous economic events that have shaped the global market landscape. The upcoming inauguration of Donald Trump as U.S president on January 20th has stirred a whirlwind of speculation across various asset classes, including Bitcoin [BTC]. Given my extensive background in analyzing market trends, I find myself cautiously optimistic regarding the potential impact of this political shift on the world’s most popular cryptocurrency.

While Trump’s “America First” policy may lead to protectionist measures that could disrupt global trade and potentially destabilize traditional financial markets, it remains unclear how these policies will translate into Bitcoin’s value proposition. On one hand, increased economic uncertainty might drive investors towards safer haven assets such as gold or the Japanese yen. On the other hand, Trump’s pro-business rhetoric could foster a more favorable environment for innovation and technological advancements, which have traditionally been key drivers behind Bitcoin’s growth.

Moreover, it is essential to consider that Trump’s administration has shown little interest in cryptocurrencies thus far, with only sporadic mentions during the campaign trail. As such, I believe it would be premature to make definitive predictions about how his presidency will impact Bitcoin’s price movement. Instead, I urge investors to remain vigilant and closely monitor market developments, as well as any potential regulatory changes that may arise under Trump’s administration.

In conclusion, the upcoming inauguration of Donald Trump as U.S president presents a complex outlook for Bitcoin, with both opportunities and challenges lying ahead. As an analyst, I encourage my fellow investors to approach this situation with prudence and a keen eye for market trends, ensuring they make informed decisions that align with their investment objectives and risk tolerance levels.

Indeed, a contemporary analysis from Forbes suggests that the upcoming event may cause Bitcoin’s collapse due to the market being perceived as ‘misguided’ and inflating the asset based on crypto-friendly policies that could potentially not come to fruition.

The report cited K33 Research’s December market outlook which read,

It’s quite possible that the market is holding unrealistic assumptions about how quickly policies will change, which could lead to prices being inflated beyond reality, until the inauguration takes place.

Trump’s inauguration to crash BTC?

Similarly, Arthur Hayes, the Co-founder of BitMEX and a well-known cryptocurrency investor, echoed this cautious stance in his recent newsletter. In it, he predicted that the inauguration might trigger a significant market sell-off. Specifically, he stated…

I’m thinking that there could be a significant drop in the cryptocurrency market around January 20, 2025, which is when Trump’s second inauguration is expected.

Furthermore, considering historical patterns, Bitcoin (BTC) might not be at its peak in January. If past events repeat themselves, there could be a possible short-term risk for BTC.

Nevertheless, a portion of the community is anticipating crucial policy shifts, particularly the establishment of a Bitcoin Strategic Reserve. Indeed, this Bitcoin reserve might serve as the main driving force behind Bitcoin’s price fluctuations in 2025.

Based on the Coinbase Premium Index, it appears that the selling pressure from December for cryptocurrencies has persisted into early 2025.

Read Bitcoin [BTC] Price Prediction 2025-2026

Generally speaking, when Bitcoin (BTC) rebounds, it tends to align with high demand from Coinbase, particularly from U.S investors. As such, the current low demand implies that a BTC rebound may not be imminent – not necessarily at this moment in time.

2025-01-02 12:08

Trump’s inauguration to crash BTC?

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