Bitcoin's price recently reached an all-time high of $108,364 before plummeting to $92,118 in just 3 days. The sharp decline coincided with increasing political instability in the United States, as the federal government faced the risk of a shutdown. Despite the downturn, many experts are optimistic that Bitcoin is experiencing an unprecedented impressive recovery in history with the emergence of the 'God candle.'
Bitcoin plummets: Can Trump's policies drive a return of cryptocurrency?
In recent days, the crypto market has been as unpredictable as the political landscape in the United States. The U.S. government shutdown stems from stalled budget negotiations, creating waves of instability that deeply affect the market in various ways.
For instance, the S&P 500 sometimes records slight gains in previous closures. Meanwhile, Bitcoin and the crypto market have shown even more unpredictable patterns in similar contexts.
Arthur Hayes, former Bitmex director, recently stirred up more attention by predicting a 'painful sell-off' in the crypto market, occurring near Donald Trump's inauguration. Arthur Hayes believes this is due to short-term disillusionment among market participants.
Former 'Pharma Bro' Martin Shkreli is extremely pessimistic about Bitcoin's future. Recently, Martin Shkreli predicted that Michael Saylor of Microstrategy might face liquidation and stated that BTC could wander aimlessly for a long time, possibly many years. Martin also warned people not to expect Trump to fulfill his commitments, implying that Trump might not keep his promises. However, many have shrugged off Shkreli's remarks with a nonchalant shoulder shrug.
These remarks contrast with the optimism of those who believe Trump's return could trigger another legendary God candle – a term describing a strong price increase in one day, enough to overshadow all previous fluctuations on the chart. Although Hayes' warnings have shaken confidence in cryptocurrency and Shkreli's statements have been ignored, Trump supporters still hope for a spectacular comeback.
Whether one supports Trump or not, it is hard to deny that Trump's potential return to the White House, along with cryptocurrency-friendly policies and the idea of a strategic Bitcoin reserve for the U.S., could be a catalyst for a strong recovery in the crypto market. The forecast of Arthur Hayes' 'painful sell-off' is gradually becoming reality, with prices expected to rise again as Trump implements such groundbreaking measures.
This would contradict Arthur Hayes' predictions. The current downturn is very likely a temporary correction, a bearish phase in a long-term growth cycle for Bitcoin. The largest cryptocurrency could recover strongly if the U.S. resolves its budgetary difficulties for 2025 and Trump implements some Bitcoin-focused strategies to boost the market.
Such events could trigger a second God candle during or after Trump's inauguration, reshaping market dynamics and opening up an unprecedented growth cycle. However, at the moment, Bitcoin's price trajectory remains unclear. Whether Trump's presidency will actually bring about the boom expected is still a big question mark, but it is undeniable that the crypto community is watching every movement with excitement and high hopes.
DYOR! #Write2Win #Write&Earn $BTC