Short-Term Crypto Surge May Follow Trump Inauguration

The ‘Trump trade’ was a triumph for the crypto sector and equities, but new data predicts a ‘short time high for crypto’ after Trump's inauguration. The analysis suggests positive tendencies may moderate once the President-elect takes office on January 20, 2025.

According to historical statistics from U.S. election years, the cryptocurrency market's positive momentum may ebb following Trump's inauguration.

Bloomberg and Macrobond Financial data shows markets rise post-election but correct following inauguration. U.S. stocks and cryptocurrencies like bitcoin have generally performed well in the weeks after presidential elections, as was the case in 2024. This increasing tendency frequently slows once the next president ‘officially’ takes office.


Research suggests that this short-term is more noticeable when a Republican gains power, since the public views the party as pro-business.

In a recent analysis, Citi U.S. equities analyst Scott Chronert advised investors to fade post-election rallies if the S&P 500 exceeds the 6100 year-end bull case goal, which is about a +5% index rise from election day.

Cryptocurrencies have also gained since Trump's election. With Bitcoin up over 30%, Solana (SOL), Ethereum (ETH), and Ripple (XRP) have all performed well. Analysts expect post-inauguration volatility in this trend.

Bitget Research head analyst Ryan Lee predicted that Bitcoin might drop below $70,000 after a 30% correction.

Many investors anticipate the crypto bull market to go until 2025, despite corrections.

In addition, Bitcoin's correlation with U.S. equities, especially Nasdaq technology companies, has declined to 0.46 in March 2024, the lowest in four years. MacroAxis data suggests Ethereum (ETH) has a greater connection with the Nasdaq at 0.66.

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