Bitcoin’s price surge in 2024 has some investors looking ahead to the potential impact of President-elect Donald Trump’s upcoming inauguration on the cryptocurrency market. Pantera Capital’s “Year Ahead in Crypto” letter highlighted that Trump’s presidency could catalyze further Bitcoin growth, much like the launch of U.S. spot Bitcoin ETFs earlier in 2024. The firm believes that, rather than following the traditional “buy the rumor, sell the news” adage, both the U.S. election and the Bitcoin ETFs could lead to continued price increases for Bitcoin, with the inauguration acting as another “buy the rumor, buy the news” event.
Bitcoin’s price surged past $100,000 in December but has recently cooled off to around $92,000. This decline has less to do with Trump’s policies and more to do with broader market factors, such as hawkish Federal Reserve actions and a stronger U.S. dollar. While some analysts expect Bitcoin’s price could dip further, there is a widespread belief that Trump’s policies could reignite the bull market once he takes office.
Trump’s stance on cryptocurrency is widely seen as favorable by industry insiders. The pro-crypto policies he is expected to promote have led to speculation that he might declare Bitcoin a reserve asset on his first day in office. Additionally, key appointments to his administration, including Paul Atkins as head of the Securities and Exchange Commission (SEC) and David Sacks as the White House’s AI and crypto czar, have further boosted optimism. These moves are seen as potentially positive for Bitcoin, helping to establish a clearer regulatory environment and increase institutional interest in the asset.
Despite Bitcoin’s recent cooling in price, experts are still bullish about the cryptocurrency market’s future, particularly given Trump’s new political landscape. Pantera Capital’s analysis suggested that the “buy the rumor, buy the news” pattern seen in 2024 with Bitcoin ETFs would likely continue with Trump’s inauguration, fueling further price growth. The optimism surrounding Trump’s policies has also contributed to the broader crypto market’s positive outlook.
As Trump prepares to take office, the cryptocurrency industry is hopeful for policy shifts that will further legitimize Bitcoin and other digital assets. Investors are paying close attention to any executive orders or regulatory decisions that could come quickly after the inauguration, which may signal further opportunities for Bitcoin’s growth in 2025. The overall sentiment in the market suggests that Bitcoin is likely to continue its bullish trajectory as the new year progresses.
