Trump Inauguration Could Be Local Top for Cryptocurrencies, Study Finds
Date: 2024-12-03 Author: Gabriel Deangelo Categories: IN WORLD
The cryptocurrency market may lose its bullish momentum after the inauguration of US President-elect Donald Trump on January 20, 2025, as evidenced by data on market activity during election years.
Both stocks and cryptocurrencies such as Bitcoin (BTC) typically perform well between the election and the inauguration, but then their growth slows, according to research from Bloomberg and Macrobond Financial. This is especially true if the Republican Party, which is traditionally considered more business-oriented, is in power.
According to research group TS Lombard, markets show more optimism after the election if the Republicans win. For example, Citi analyst Scott Kronert wrote in a November report: “Investors could tactically exploit a post-election rally if the S&P 500 Index exceeds our target of 6,100 by year-end, which would represent a 5% gain since the election.”
The S&P 500 Index reached 6,047 on December 2, up 4.5% from November 5.
Cryptocurrencies have also shown significant growth since Trump’s victory. Bitcoin has shown more than 30% growth, while the Solana token (SOL) has shown similar results.
Some experts believe that Bitcoin’s growth will continue after the inauguration, although they do not rule out corrections. Thus, Ryan Lee, chief analyst at Bitget Research, predicts a possible 30% decline in BTC before it returns to growth. “Historical data suggests that Bitcoin may correct by 30% before reaching a cyclical top,” Lee said on November 27. This could push Bitcoin’s price down to $70,000 per coin.
Investors expect the cryptocurrency bull market to last until the second half of 2025, investment firm MV Global reported.
