Trump’s Policy Decisions May Impact Bitcoin Prices Significantly
Standard Chartered warns that Bitcoin’s price may drop to $80,000 if Donald Trump fails to implement pro-crypto policies quickly after taking office on January 20. Increased market volatility and the Federal Reserve’s hawkish stance contribute to this precarious situation. Investors are advised to remain cautious of potential disappointments in the policymaking process.
Standard Chartered has issued a warning that Bitcoin could experience a significant decline if Donald Trump does not promptly implement pro-cryptocurrency policies upon taking office on January 20. Analysts predict the price of Bitcoin could plummet to as low as $80,000 if these expectations are unmet. Market volatility has persisted since the Federal Reserve indicated a hawkish stance for 2025, contributing to the current precarious situation of cryptocurrencies.
Investors have high hopes regarding Trump’s promises to make the United States the “crypto capital of the world,” yet there are concerns about potential disillusionment if swift action is not taken. Standard Chartered emphasizes that investors should be cautious in light of possible disappointments. With Bitcoin currently hovering around $90,000, a decisive drop below this threshold could escalate toward the predicted $80,000, leading to substantial outflows from Bitcoin exchange-traded funds, potentially exceeding $1 billion.
Since the election, data suggests that Bitcoin ETF purchases have reached breakeven, while recent sales have largely occurred at a loss. Reports indicate that around 14% of Bitcoin holders are underwater, exacerbating market anxiety. “The risk of pain is building,” warns Standard Chartered’s analysts, indicating troubling trends in the market.
Despite current uncertainties, many analysts maintain ambitious price targets for Bitcoin. Standard Chartered projects a future price of $200,000 per Bitcoin, while some experts predict it could reach $250,000 by the end of the year. They advise that once any retracement stabilizes, it may be prudent to consider accumulating more Bitcoin.
Recently, Bitcoin has seen a slight increase of 2.5%, trading at approximately $99,702, while Ethereum has risen by 4.5% to around $3,383. This cautious optimism reflects the ongoing volatility and investor sentiment in the cryptocurrency market.
The cryptocurrency market has been characterized by significant volatility, particularly following announcements from key figures in the financial sector, such as the Federal Reserve. With the upcoming inauguration of Donald Trump, there are heightened expectations regarding potential shifts in cryptocurrency policy that could affect Bitcoin’s price. Analysts at Standard Chartered are closely monitoring these developments, given the substantial amount of investment positioned in Bitcoin and the ongoing debates surrounding regulatory frameworks.
In conclusion, the potential impact of Donald Trump’s policy decisions on Bitcoin’s price cannot be understated. As investors await a shift in pro-crypto policies, the risk of a downturn looms, particularly if promises are not fulfilled promptly. While ambitious forecasts for Bitcoin’s future prices persist, caution is advised in navigating the current market dynamics, which remain unstable and susceptible to significant fluctuation.
Original Source: www.dlnews.com
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