Why Bitcoin Could Drop Below $90K Before Trump’s Inauguration, Then Surge to $125K–$150K
As Donald Trump gets closer to being inaugurated as president on January 20, 2025, Bitcoin could face some volatility in the days leading up to the event. It’s possible that Bitcoin might drop below $90,000 before he officially takes office. However, after Trump’s inauguration, the market could shift in his favor, and Bitcoin may surge to new heights, possibly reaching $125,000 to $150,000. Here’s why this might happen.
Before Trump’s inauguration, there may be some uncertainty in the markets. Investors often become cautious around major political changes, especially when they’re unsure of what new policies might come. With Trump’s return to office, there could be concerns about future regulations and how the market will respond. This uncertainty could cause some investors to pull back, sell off assets, or wait for more clarity. As a result, Bitcoin might experience a short-term drop below $90,000 in the lead-up to the inauguration.
Additionally, many institutional investors, who have been buying Bitcoin in recent years, may hold back from making large moves before Trump’s policies are clear. These investors typically prefer to wait for certainty in the market before making big decisions, and this cautious approach could weigh on Bitcoin’s price before Trump takes office. The lack of new buying pressure might also contribute to Bitcoin’s price falling under $90,000.
Another factor that could affect Bitcoin’s price is the global economic environment. Often, before a new president takes office, the market goes through a period of consolidation, where investors are unsure about the future. In this time, investors may move their money out of riskier assets like Bitcoin, causing a temporary drop. If other global economic factors, like trade tensions or inflation fears, come into play, Bitcoin could experience a decline before Trump’s inauguration.
However, once Trump is inaugurated and his policies become clearer, the mood in the market could change. Trump has been seen as a pro-business president, and many believe that he might take a more favorable approach toward cryptocurrencies. This could create a positive shift in sentiment, with investors feeling more confident in Bitcoin’s future. As more clarity comes to the market, more people could buy Bitcoin, pushing its price higher. This shift in attitude could send Bitcoin soaring toward $125,000 to $150,000 in the months after Trump takes office.
Moreover, Bitcoin is set to undergo a halving event in 2024, which will reduce the reward for miners. Historically, Bitcoin’s price tends to rise after a halving because the supply of new coins becomes limited, and demand often increases. If Bitcoin dips below $90,000 before the inauguration, many long-term investors might see this as a good opportunity to buy. This could lead to a rebound in Bitcoin’s price once Trump takes office, helping it move toward higher price levels.
In conclusion, while Bitcoin could experience a dip below $90,000 in the time before Trump’s inauguration due to uncertainty and cautious investor behavior, there is strong potential for the cryptocurrency to rise significantly afterward. With clearer policies, continued institutional support, and the upcoming halving event, Bitcoin could very well see a surge to $125,000 to $150,000 after Trump’s inauguration.
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