While Donald Trump’s inauguration is expected to cause a rise in Bitcoin on January 20, analysts have stated that it will also have an effect on the market for spot Bitcoin ETFs.
In their recent report, Pantera Capital analysts stated that 2025 will be a significant year that will shape the Bitcoin and crypto markets as a whole. They also mentioned that Trump’s inauguration will have an effect on the market for spot Bitcoin ETFs.
The analysts believe that Trump will push Bitcoin and altcoins to even higher levels, and that his victory will follow the pattern of “buy the rumor, buy the news”:
“The traditional Wall Street saying ‘buy the rumor, sell the news’ worked well in the days when CME Bitcoin futures launched and Coinbase went public. However, this saying no longer holds true with the introduction of spot Bitcoin ETFs.
Currently, buying the rumor and buying the news applies to Bitcoin ETFs, and the US election will be another example of this.”
Pantera Capital also addressed the decline in Bitcoin, stating that the drop in price after surpassing $100,000 in December was influenced more by monetary policy than by political uncertainties.
The analysts mentioned that the possibility of a slower-than-expected rate cut by the Federal Reserve and a stronger dollar are temporarily putting pressure on risk assets like Bitcoin.
Pantera Capital analysts believe that the US presidential election is not just a speculative event, but a significant turning point for the cryptocurrency market. They expect it to push the price of Bitcoin even higher.
*This translation does not constitute investment advice.
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