How Trump Affects the Crypto Market and Why BTC May Grow Significantly
Date: 2025-03-14 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
Investors were hoping for positive changes in the crypto market with the return of Donald Trump, but the situation turned out differently. Due to his aggressive trade policy and the introduction of new duties, the market came under pressure, which caused a drop in prices for digital assets.
However, according to some analysts, Trump's actions may be part of a strategic plan that will lead to the strengthening of Bitcoin. Inna Golovacheva, a representative of RACIB and ASI, in an interview with BeInCrypto explained how exactly the former US President manipulates the economic situation and why this may lead to the growth of BTC.
According to Golovacheva, in the next six months the US will have to pay off about $7 trillion in debt. If the financial system does not face a crisis, the debt will be refinanced at 4%, which will create serious economic risks.
"It looks like Trump is deliberately trying to destabilize the market in order to provoke the Fed to intervene. If a crisis starts, bond yields will fall, and this will make borrowing cheaper," the expert explained.
She also compared Trump's current strategy with his actions at the beginning of the COVID-19 pandemic. Then, the rate cuts and economic downturn created favorable conditions for the growth of markets, including the cryptocurrency market.
"Trump initiates an increase in import duties by 30-50% for various goods, increases tensions in the energy sector. This leads to a slowdown in the economy and asset sales. A similar situation was observed in 2020, when the rate cuts and the ensuing crisis ultimately gave impetus to the growth of markets and cryptocurrencies," Golovacheva noted.
She believes that Trump's main goal is to artificially create a crisis in order to subsequently achieve lower interest rates. This could free up $2.5 to $3 trillion in liquidity and lead to a market reversal. As a result, according to the expert, investors should not write off Bitcoin prematurely - it is likely that a new growth cycle awaits it.
“Taking into account inflation, increased liquidity and the weakening dollar, BTC may grow 2-3 times,” Golovacheva concluded.
BeInCrypto previously published expert forecasts on Bitcoin’s prospects in 2025.
