Bitcoin remains at the forefront of all financial discussions following Trump’s first inaugural speech on Monday.
In his inaugural address, Trump focused primarily upon national issues such as immigration, economic policies and energy production.
The speech was largely silent on crypto despite his recent support of BTC.
The price of Bitcoin dropped from a high this morning of $109,000 to around $103,000 when I wrote this article. Markus Thielen, of 10x research, believes that it could fall even further in the coming weeks.
What’s more important to Bitcoin than Trump 2.0
Trump’s return to White House has been established to be a material tailwind to Bitcoin, as the President-elect is committed to making America a crypto capital of the globe.
Markus Thielen, however, is not convinced that Trump’s inauguration today was the most significant thing for Bitcoin.
It could very well be a catalyst for a near-term rise in BTC, but these gains could be short-lived, as the focus will eventually turn back to the larger headwinds.
“Very soon, the market will focus again on stronger employment data and the more hawkish Fed which is usually a headwind to Bitcoin,” he argued on CNBC’s Street Signs Asia last week.
Here’s why Bitcoin may have already peaked.
Markus Thielen attributes recent crypto market gains more to the Fed’s jumbo-rate cut in September than to the general optimism about pro-crypto policies during the Trump presidency.
The central bank has become more hawkish since then, as signs of a weakening of the US labour market have reversed in the last two months of 2024.
Theilen does not expect the Federal Reserve to reduce rates further in the near future. He is therefore convinced that the BTC rally is over and that the crypto asset will not likely reach record levels within the next few months.
The analyst at 10X Research believes that the Trump 2.0 optimism is already baked into the current price of Bitcoin.
What else could cause a possible pullback in BTC?
Thielen isn’t the only one who believes that Bitcoin will be weaker in the future.
Jeff Kilburg, the founder and CEO of KKM Financial is also in the same league.
Investors are buying the rumours that the new US government will take a positive stance towards Bitcoin on January 20 ..
They will likely sell the news that Trump did mention cryptocurrency in his inaugural address.
In an interview with CNBC today, he said: “If the US government doesn’t buy Bitcoin within the first 100-day period, we will see a drop in BTC.”
Note that Bitcoin’s price is up 50% from its election day price (6 th).
Analysts may change their views as the situation unfolds.
This site is for entertainment only. Click here to read more
