'Unfounded' Trump Crypto Market Alert Regarding Bitcoin Valuation Causes Stir
'Unfounded' Trump Crypto Market Alert Regarding Bitcoin Valuation Causes Stir
Bitcoin and cryptocurrency prices have retreated from their highs following the 2020 U.S. election, with traders preparing for a significant shift in 2025.
*Unlock over $3,000 in NFT, web3 and crypto perks — Apply now!***
The price of bitcoin has fallen from an all-time high above $108,000, declining towards $90,000 per coin and wiping out over $500 billion in value from the overall cryptocurrency market amid rumors of an impending bitcoin price collapse.
Currently, fears of the Federal Reserve's worst nightmare coming true in 2025 have prompted analysts to raise concerns about the crypto market's unrealistic expectations toward the new Trump administration.
*Sign up now for the free CryptoCodex—*A five-minute daily newsletter for crypto enthusiasts, investors and traders eager to stay informed and profited during the crypto market's bull run
As per K33's head of research Vetle Lunde, it's highly probable that the market is overestimating the rate of policy changes and the eventual impact on prices ahead of the inauguration.
Trump is anticipated to take office as U.S. president on January 20, 2025, whereupon the crypto sector anticipates a series of executive orders and directives from the new administration—but if these do not materialize, the bitcoin price may plummet.
"We predict that the current rally will reach its peak around mid-January before the inauguration, and recommend that investors consider reducing risk and cashing in on potential profits for a short-term investment," Lunde wrote in a December client briefing.**
Trump has assured to transform the U.S. into a global leader in bitcoin and crypto during his second term, with his announcement earlier this year of plans to establish a bitcoin strategic reserve, much like the nation's oil reserve, playing a role in boosting bitcoin prices.
*Sign up now for CryptoCodex*—A free, daily newsletter for crypto enthusiasts
Lunde's bearish bitcoin price prognosis mirrors a similar warning from former BitMex CEO Arthur Hayes, who issued a similar cautionary statement earlier this month.
"I believe the crypto markets will suffer a dramatic sell-off around January 20, 2025—the date of Trump's second inauguration," Hayes, now in charge of the Maelstrom family office, stated in a blog post.
In response to potential digital asset regulations, many investors are diversifying their portfolios to include a broader range of digital assets.
To capitalize on the growing trend of digital asset adoption, some companies are offering services that allow users to buy, sell, and manage their digital assets easily and securely.