Bitcoin and crypto prices have fallen from their post-Donald Trump election victory highs, with traders bracing for a “major” move in 2025.
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The price of bitcoin has fallen from an all-time high of more than $108,000, falling to $90,000 per bitcoin and wiping about $500 billion from the combined crypto market amid warnings that a fall in the price of bitcoin could be imminent.
Now, as the Federal Reserve fears its ‘biggest nightmare’ could come true in 2025, analysts have warned that the bitcoin and crypto market has ‘illusory expectations’ of the new administration Trump.
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US President-elect Donald Trump’s victory in the White House contributed to the rise in the price of Bitcoin in 2017. … (+)
“It is very likely that the market has illusory expectations about the pace of political change and overestimates the impact until the inauguration,” wrote Vetle Lunde, head of research at K33, in a note to to customers in December.
Trump is expected to be inaugurated as president of the United States on January 20, and the crypto industry is banking on his issuing a series of executive orders and directives – although if these do not materialize, the price of Bitcoin could fall.
“We expect the current recovery to peak in mid-January before the inauguration and view this area as a natural area to reduce risk and realize near-term profits,” Lunde wrote.
Trump has pledged to make the United States the bitcoin and crypto capital of the world during his second term, with his recently confirmed plan to establish a strategic bitcoin reserve similar to the country’s oil reserves helping to spur a bitcoin price boom.
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The price of Bitcoin has fallen from its recent high, fueling fears of a Bitcoin price crash. … (+)
Lunde’s bearish bitcoin price forecast echoes a similar warning from former BitMex chief executive Arthur Hayes, who earlier this month warned of a bitcoin price crash in January.
“I believe crypto markets will experience a heartbreaking fall around Trump’s Inauguration Day, January 20, 2025,” Hayes, who now runs the Maelstrom family office, wrote in a blog post.
