Donald Trump’s Inauguration Will Bring ‘Buzz’ to Crypto Markets in 2025: Analysts

Donald Trump’s inauguration on Monday will not lead to significant price movements for major cryptocurrencies, industry experts said. Decryption before A surprise drop on Friday night The official Trump meme coin.

Well established coins like Bitcoin, Solana and XRP increased significantly Since the Republicans won the election on November 5, some experts have expressed the opinion that the market has already been priced for the inauguration.

“I don’t expect any significant moves on Monday,” said Ruslan Lienha, head of markets at YouHodler. Decryption.

“The event seems to have already been priced and the inauguration is mostly ceremonial rather than market-based,” he added.

Some observers also point out that it could be a “news sell” day for major tokens. Bitcoin was already strong Before Trump’s inauguration.

“(Positive) CPI data has already been priced in and Trump’s inauguration is unlikely to introduce any immediate, game-changing policies for crypto, and short-term traders could be taking profits on Monday,” said Andy Lian, an intergovernmental blockchain consultant and cryptocurrency writer. .

The proposal resonates with strong warnings from figures such as BitMex founder Arthur Hayes. Last month, it was predicted that Bitcoin could “sell off violently” when Trump takes office.

Although not as pessimistic as Hayes, says Philip Pieper, founder of Swarm Decryption The inauguration itself does not provide any new information to the market.

“It’s important to emphasize here that price action on Monday will be mostly noise in the bigger picture,” he explained.

But that picture could change once Trump and his administration take office, with traders waiting to see if the current president-elect lives on. previous posts.

“I’m more focused on what he (and his administration) will accomplish over the next few months,” said eToro market analyst Simon Peters. Decryption.

Peters notes Trump complained at his last press conference interest rates are “too high,” suggesting that the incoming president may push them lower.

“The easing of financial conditions under his administration could provide a tailwind for crypto-asset prices,” adds Peters.

And assuming that Recent reports of crypto-related enforcement orders Indeed, analysts are relatively confident that the overall trajectory of the market will be higher this year.

Pieper explained, “As the regulatory environment becomes clearer and the market realizes significant updates for the first year of the Trump administration, we are likely to see an overall increase in prices.”

Legislative and regulatory steps can also be predictably combined with improved macroeconomic performance, e.g US inflation.

“Inflation and exchange rate sensitivity are important because they ultimately have a major say in the outlook for money supply and market liquidity,” Pieper said. “The more liquidity there is in the market, the more it drives up asset prices.”

While the arrival of both crypto-friendly macroeconomics and presidents should point to a general uptick in prices, some analysts warn that some of Donald Trump’s other economic policies could indirectly bite the cryptocurrency market.

“Potential escalation of trade wars and other policies, such as the introduction of new tariffs, could keep inflation rising and put downward pressure on financial markets,” warns Youhodler Ruslan Lienkha.

It’s probably too early to expect big moves on Monday, as the market needs to take action from the new administration before beginning to distinguish perceptions from reality.

On the other hand, Monday could bring more volatility to small cap tokens and (politically themed) meme coins.

“For example, tokens such as MAGA or DOGE (Department of Government Efficiency) may rally under the influence of emotional trading rather than substantive factors,” Lienha said.

However, Phillippe Pieper warns that they can easily collapse due to their low liquidity.

“The problem with these kinds of tokens is that they’re mostly sentiment-based, they’re very volatile, and it can be difficult to build intrinsic value,” he said.

Edited by Stacey Elliott.