Bitcoin and crypto prices have pulled back from their highs following Donald Trump’s election victory, and traders are prepared for a “big” move in 2025.
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Bitcoin price has fallen from an all-time high of over $108,000 to $90,000 per bitcoin, consuming around $500 billion from the entire crypto market, as warnings were raised of an imminent crash in Bitcoin price.
As the Federal Reserve now fears its “worst nightmare” could come true in 2025, analysts warn that the Bitcoin and crypto market has “delusional expectations” of Trump’s new administration.
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US President-elect Donald Trump’s victory in the White House has helped the Bitcoin price skyrocket … [+]
“It is very likely that the market has delusional expectations about the pace of policy changes and is overstating the impact leading up to the inauguration,” K33 research director Vetle Lunde wrote in a December note to clients.
Trump is set to be sworn in as US president on January 20, and the crypto industry is betting that he will issue a flurry of executive orders and directives – but if they fail to materialize, the price of Bitcoin could plummet.
“We expect the current rally to peak in mid-January before the inauguration and view this area as a natural area to reduce risk and capture short-term gains,” Lunde wrote.
Trump has vowed to make the US the bitcoin and crypto capital of the world during his second term, with his recently confirmed plan to create a strategic bitcoin reserve similar to the country’s oil reserve helping to fuel a bitcoin price boom.
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Bitcoin price has retreated from its recent peak, fueling fears that there could be a crash in Bitcoin price … [+]
Lunde’s bearish Bitcoin price prediction echoes a similar warning from former BitMex boss Arthur Hayes, who earlier this month warned of a Bitcoin price crash in January.
“I believe crypto markets will experience a shocking collapse around Trump’s Inauguration Day on January 20, 2025,” Hayes, who now runs the Maelstrom Family Office, wrote in a blog post.
