Renowned cryptocurrency analyst Flow Horse predicts that by mid-January, the prices of Bitcoin and altcoins could rise significantly. This optimism stems from the expectation that the incoming Trump administration will adopt pro-cryptocurrency policies and has expressed support for reducing government resistance to cryptocurrencies. Trump's proposed Bitcoin treasury plan further fuels bullish sentiment.
However, analysts advise caution, indicating that traders may have overestimated Trump's ability to implement these policies quickly. As the January 2025 inauguration approaches, the initial excitement may give way to market adjustments.
Potential market peaks and adjustments
Flow Horse emphasizes the possibility of the cryptocurrency market reaching local peaks before and after Trump's inauguration. He points out that while many investors expect cryptocurrencies to continue rising during Trump's presidency, the market may face challenges, including dealing with the reality of a divided Congress.
Additionally, the broader economic landscape presents obstacles. Unlike the 2020 cycle, which was boosted by low interest rates and stimulus measures, today's market faces tighter credit conditions. Analysts warn that, without similar economic support, there needs to be clear reasons for significant growth beyond the previous cycle.
Key points traders need to note
While there is optimism about the bullish potential of cryptocurrencies, traders should remain vigilant. The market's trajectory depends on various factors, including the implementation of policies supporting cryptocurrencies and the broader economic situation. We urge investors to manage expectations and prepare for potential adjustments in the coming months.