#news_update Bitcoin (BTC) recently hit an all-time high of $108,364, only to plunge to $92,118 in three days. The dramatic price drop coincided with growing political uncertainty in the U.S., as the federal government faces a possible shutdown. Despite the drop, some are anticipating the emergence of a ‘God candle’ that could mark bitcoin’s most impressive recovery to date.
Bitcoin Plunges: Will Trump's Policies Spark a Crypto Comeback?
In recent days, the crypto market has been as unpredictable as the US political arena. The looming US government shutdown stems from stalled spending negotiations, a situation that has historically affected markets in mixed ways.
For example, the S&P 500 has occasionally posted small gains during the previous close. Meanwhile, bitcoin and the broader cryptocurrency space have shown an even less predictable pattern in similar circumstances.
Adding to the interest, Arthur Hayes, former head of Bitmex, recently predicted a “terrible drop” in the crypto market ahead of Donald Trump’s Inauguration Day. He attributed this to short-term disappointment among market participants.
Former ‘Pharma Bro’ Martin Shkreli is extremely pessimistic about bitcoin. He recently stated that Microstrategy’s Michael Saylor could be facing liquidation, and he further suggested that bitcoin (BTC) could wander aimlessly for a long period of time, perhaps even years. He also warned that people should not expect Trump to follow through on his promises, hinting that he may not follow through. However, some simply shrugged off Shkreli’s views with a nonchalant nod.
That view is at odds with the optimism of those who believe Trump’s rise could trigger another legendary God candle—a term that describes a massive single-day price surge that eclipses surrounding activity on the charts. While Hayes’ warning has dampened crypto supporters’ spirits and Shkreli’s remarks have been largely ignored, Trump supporters remain optimistic.
Whether you support Trump or not, it’s safe to say that his return to office, coupled with crypto-friendly policies and the idea of a US strategic bitcoin reserve, could spark a significant recovery in the crypto market. It’s entirely possible that the sharp decline that Hayes predicted is happening right now, as I write this, with prices expected to rebound if Trump implements those measures.
This would reverse Hayes’ projection. It could be argued that the current downturn is a temporary pause—a bearish phase in a larger bullish cycle. Bitcoin could stage a monumental recovery if the US resolves its 2025 budget issues and Trump implements some bitcoin-focused strategies that drive the market.
Such an event could trigger a second wave of God candles after or amid Trump’s inauguration, reshaping market dynamics and unleashing unparalleled growth. For now, however, bitcoin’s immediate price path remains unclear. Whether Trump’s presidency will bring the anticipated boom remains uncertain, but the crypto community is watching with bated breath.