Trump will officially assume the presidency of the United States on January 20, and we are currently in the final countdown stage, with only 17 days remaining.
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Trump's upcoming inauguration and its potential impact on the cryptocurrency market have indeed become the focal point of recent market attention. Below is an in-depth analysis of this situation and predictions for the potential trends in the cryptocurrency market:
Trump's Inauguration and the Cryptocurrency Market
Trump will officially take office as president on January 20, 2025. At that time, the market is full of anticipation regarding whether he will mention cryptocurrencies, especially Bitcoin (BTC), in his inaugural address. Although Trump has previously made supportive remarks about cryptocurrencies, he has also expressed some opposing views, particularly regarding central bank digital currencies (CBDCs) and proposals for regulating Bitcoin. Therefore, whether he will discuss Bitcoin and its future policies in his inaugural speech has become an important topic of speculation in the market.
Two Key Fluctuations of the Trump Administration
Market sentiment fluctuations due to the power transition: During this stage of Trump's impending inauguration, the sentiment in the U.S. market is mostly in a wait-and-see mode, and investors are filled with anticipation regarding cryptocurrencies. If Trump expresses support for Bitcoin and cryptocurrencies, especially by proposing a clear strategic reserve bill or other favorable measures in future policies, it would significantly boost market confidence.
Prospects of the Bitcoin Strategic Reserve Bill: If Trump's government passes a Bitcoin strategic reserve bill, other countries might follow suit. As the global economy faces uncertainty, some countries' central banks and sovereign wealth funds may start to consider Bitcoin as a reserve asset. Considering that the total supply of Bitcoin is fixed and the actual number of Bitcoins in circulation is even lower, the supply-demand imbalance will drive up prices.
Long-term Trend of Bitcoin
Based on the current market environment and expectations of Trump’s administration policies, Bitcoin's long-term trend shows significant bullish potential. Particularly in the absence of an economic recession, if Trump can fulfill his commitments to the cryptocurrency industry, Bitcoin may experience a long-term bull market similar to gold. As Bitcoin is increasingly viewed as a “safe-haven asset” by more countries and institutions, its price is expected to rise significantly.
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