Trump takes office, double benefits emerge, friendly BTC commitment and tariff policy, igniting Bitcoin's consecutive eight-week rise?
Trump elected president in 2024, receiving both electoral and popular votes, the crypto market is in a frenzy. The Federal Reserve consequently lowers interest rates again, Bitcoin is stimulated, today breaking through the new high of $76,849.
Looking back at history, Bitcoin's performance in the months of November and December during the last two election years was as follows:
2020: Up 42.95% in November, up 46.92% in December
2016: Up 5.42% in November, up 30.8% in December
Bitcoin has risen in the year following the elections, and these months are often peaks for annual growth. It is expected that this year's performance will continue, at least rising until the end of the year.
Trump has two major policy benefits for Bitcoin. Although Bitcoin rose and gold fell after Trump's election, it is expected that by 2025, his policies will support the market for both Bitcoin and gold.
Why is that?
Because Bitcoin and gold may profit from “devaluation trades,” a strategy often used to respond to currency devaluation and geopolitical risks. Trump advocates for increased tariffs, and geopolitical conflicts may escalate, all of which will promote “devaluation trades.” Take Trump's policies over the past year as an example; he plans to impose tariffs of 10% to 20% on imported goods, with some speeches mentioning even higher rates, especially targeting China.
I believe that the U.S. increasing import tariffs will raise the cost of goods, and companies will often pass this on to consumers, leading to rising prices and intensified inflation. As an inflation hedging tool, Bitcoin holds its unique value at this time, potentially preserving and increasing value during inflation, helping investors find stability.
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