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Bitcoin set to rise with Trump's inauguration

Bitcoin set to rise with Trump's inauguration

GrafaGrafa2025/01/14 09:40
By:Liezl Gambe

Pantera Capital has indicated that the upcoming inauguration of President-elect Donald Trump could serve as a significant catalyst for Bitcoin's (CRYPTO:BTC) price in 2025.

In their latest blockchain letter, Pantera dismissed concerns that the U.S. presidential election would follow the traditional investment strategy of "buy the rumor, sell the news."

Instead, they believe this event will align with a "buy the rumor, buy the news" scenario for Bitcoin.

Historically, this adage suggests that investors purchase assets in anticipation of positive news and then sell once it is confirmed.

However, Pantera noted that Bitcoin's price surged following the launch of spot Bitcoin exchange-traded funds (ETFs) in January 2024, contradicting this trend.

The firm highlighted that Bitcoin experienced a significant rally, with prices doubling over the past year and over $40 billion flowing into these funds.

“The U.S. election is another ‘Buy The Rumor, Buy The News’ event,” Pantera stated, indicating a similar bullish sentiment surrounding Trump's inauguration.

Despite recent fluctuations in Bitcoin's price, which has seen a cooling period after reaching over $100,000 in December, industry experts remain optimistic.

Some traders are anticipating a correction towards the $80,000 range due to external factors such as Federal Reserve policies and a strengthening U.S. dollar.

However, there is speculation that Trump could reinvigorate the cryptocurrency market post-inauguration.

Strike CEO Jack Mallers suggested that Trump might issue an executive order on his first day in office to declare Bitcoin a reserve asset.

Scott Mason from Holland Knight remarked that Trump's presidency could lend credibility to cryptocurrency and positively influence prices.

With pro-crypto appointments within Trump's administration, including Paul Atkins at the SEC and David Sacks as crypto czar, there are expectations for favorable developments in the crypto landscape.

At the time of reporting, the Bitcoin (BTC) price was $95,054.27.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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