As the countdown to Donald Trump’s inauguration as the 47th President of the United States enters its final week, crypto market participants are closely monitoring the situation.
With just seven days until the Jan. 20 ceremony, investors and analysts are bracing for the impact of Trump’s return to the White House.
Has the market already priced in Trump’s victory?
Many in the cryptocurrency market are wondering if the market has already “priced in” its victory for Bitcoin. The term “embedded” refers to the idea that markets have already absorbed and reflected expectations about a future event or change in current asset prices.
Analysts like Dan Gambardello and Hoeem say the market has yet to price in Trump’s inauguration. This means there will be room for a crypto rally once Trump takes office.
“People think Trump’s pro-crypto presidency and governments rushing to buy Bitcoin are taken into account. It’s just not taken into account,” Gambardello posted on X.
Crypto expert Hoeem echoed the sentiments of many when he said, “Donald Trump’s inauguration is NOT being considered. »
“Trump will backtrack on anything that negatively impacts the crypto market. Trump will double down on anything that positively impacts the crypto market. He wants, from day one, the pump to pump and keep pumping, not only for his team and family’s strong ties to the market, but simply for his ego alone,” Hoeem added.
It appears that even traditional financial markets are waiting to capitalize on a crypto bull run under Trump.
According to a Bitwise survey, 56% of financial advisors said Trump’s victory made them more likely to invest in crypto. Among those already investing in crypto, 99% plan to maintain or increase their crypto allocations in 2025.
Caution vs. Optimism: Crypto Market Prepares for Trump
Hoping for a surge once Trump takes office on Jan. 20, some argue caution is warranted.
The New York Digital Investment Group said it could take time before Trump delivers on his campaign promises. NYDIG warned that there would be no changes in crypto policy immediately after the inauguration, especially since some high-level government positions have yet to be filled.
“We caution against expecting immediate changes. Key officials still need to be named, those who have been named need to go through the confirmation process, and then once confirmed, they need to assemble their staff,” NYDIG explained.
Additionally, officials have yet to reveal who will lead agencies like the CFTC, OCC, and FDIC. Nonetheless, NYDIG expects that “they will also be pro-Bitcoin and crypto.”
During his previous presidency, Trump’s policies significantly influenced financial markets, including cryptocurrencies. His administration has often taken an ambiguous regulatory stance, contributing to volatility in the digital asset space.
Now that Trump has clearly expressed his support for crypto, it remains to be seen how soon he can bring his promises to life. In the days leading up to the inauguration, the crypto community remains cautious but optimistic.
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