Bitcoin Plunges: Could Trump’s Policies Spark a Crypto Comeback Trail?
Bitcoin (BTC) recently hit an all-time high of $108,364, only to tumble to $92,118 within three days. This dramatic price drop coincides with growing political unease in the U.S., as the federal government faces a potential shutdown. Despite the downturn, some anticipate the emergence of a “God candle” that could mark bitcoin’s most impressive rebound yet.
In recent days, the crypto market has been as unpredictable as the U.S. political scene. The looming U.S. government shutdown stems from stalled spending negotiations, a situation that historically affects markets in varied ways.
For instance, the S&P 500 has occasionally recorded modest gains during past shutdowns. Meanwhile, bitcoin and the broader cryptocurrency space have shown even less predictable patterns under similar circumstances.
Adding to the intrigue, Arthur Hayes, the former head of Bitmex, recently predicted a “harrowing dump” in crypto markets near Donald Trump’s Inauguration Day. He attributed this to short-term disillusionment among market participants.
Former ‘Pharma Bro’ Martin Shkreli is incredibly downbeat on bitcoin. Just recently, he declared that Microstrategy’s Michael Saylor might face liquidation, and he further suggested that bitcoin (BTC) might meander aimlessly for an extended period, possibly even years. He also cautioned that folks shouldn’t bank on Trump fulfilling his pledges, hinting that he might not deliver on them. Yet, some have merely dismissed Shkreli’s views with a nonchalant shrug.
These views runs counter to the optimism of those who believe a Trump comeback could spark another legendary God candle—a term describing a massive one-day price spike that overshadows surrounding activity on the chart. While Hayes’ warning has dampened spirits being a crypto supporter and Shkreli’s statements shrugged off, Trump supporters remain hopeful.$BTC