Many in the Crypto community believe that the second-term election of President’s President Donald Trump will send Bitcoin prices skyrocketing, and made it-from $ 69,374 on election day (Nov. 5) to a record of $ 108,786 when the new administration opened up on January 20.
But since that time, the price of bitcoin (Btc) has almost fell, Dropping Below $ 80,000 in Feb. 28 – a 26% decline.
The new administration has thrown the office dedicated to establishing a strategic crypto reserves, crypto-friendly cabinet appointments, and market reform law, among other changes. Most of it has been delivered to its promises to this day.
However, not too early to ask: with “Impact of Trump“
Perhaps the Macro factors, such as a floating tariff war and a weak global economy, will be blamed for slumping market prices. Then had a bybit hack in late February, that drained $ 1.4 billion From the second largest crypto exchange by volume. Perhaps the Trump administration itself will even blame for strengthening chaos and insecurity during the first six weeks in the office?
“Macro factors and crypto blowups are combined to erase confidence,” mentioned Bloomberg on February 25. Elsewhere, the Financial Times noticed that while some investors rely on Trump’s election will announce a Golden is For crypto, others, such as the well -known US hedge fund Elliott Management, have warned that Trump’s embrace of crypto may lead to an “inevitable collapse” that “may be destroyed in ways we have not yet expected.
A “healthy correction”?
“While the recent Bybit situation has become significant, the shift of Bitcoin price momentum has begun properly before the record-setting of $ 1.46 billion hack,” Garrick Hianman, an independent cryptocurrency analyst, said to Cointelegraph.
In fact, the correction follows the traditional market cycles – that is, a “classic” case of “buying rumors, sell the news,” says Hianman, which is further observation:
“The biggest gain of crypto has taken place until and only after Trump’s election victory, so expect a cooldown to the market and can be a healthy correction.”
Moreover, cryptocurrencies are more intertwined with traditional markets these days, making crypto prices sensitive to macroeconomic concerns such as inflation, interest rates and trade tensions. “The broader economic pressure is a sad appetite for the entire circle,” Hianman said.
Related: Timeline: Trump’s first 30 days bring in amazement -With change for crypto
Justin D’Anathan, head of sales in token launch advisory firm Liquifi, said the market has only experienced a traditional “buy a rumor, sell the news” incident.
The enthusiasm for the potential pro-crypto policies under a new US administration has pushed prices to record highs, but enthusiasm has become pessimism with questions about policy implementation times. “Without immediate changes to the materializing regulation, the market has corrected,” D’heethan told cointelegraph.
Add Bybit Hack, where the Federal Bureau of Investigation has Sinisini North Korea, and “you’re getting a seriously scandal of investor confidence,” he continued. Moreover, the subsequent launch/extermination of stolen possessions on various platforms “created real downward pressure on the market,” even though the strategy (formerly microstrategy) gained a massive amount of Bitcoin, D’AThe added.
Trends will remain positive
However, “the long-term perspective remains positive,” James McKay, founder and principal of McKayresarch, a consulting digital assets, told Cointelegraph. “We never had a bull cycle that wasn’t interspersed with a lot of 30%, 40% or even 50% correction.”
“We have had a more positive regulation in the past year than the past four years combined,” said McKay, including the Securities and Exchange Commission Termination of Sab 121 On January 23, “which will allow major financial institutions in crypto preservation.”
However, some uncertainty about Trump’s policies can still creep, even if the optimization remains high, Hianman suggested:
“The questions remain about whether the main initiative – such as a formal ‘crypto council’ or a national bitcoin reserve – will actually be materialize.”
On March 2, for example, the crypto reserve plan was reported Still need a vote in Congress.
“If Trump’s promises are stall or not fail to meet expectations, emotions will still be eliminated,” Hianman said.
“The effects are still not opening”
Maybe the Crypto sector is very optimistic about optimizing following the November election?
Rapeman didn’t think so. “The positive impact of Trump’s election on the crypto markets is true, but its effects are still unchanged,” he added.
Crypto-friendly cabinet appointments and agency appointments like Paul Atkins in the SEC, Howard Lutnick at the Commercial Department, and David Sacks as Czar Czar are concrete, significant events. Everywhere, Coinbase and Uniswap do not need to be afraid of setbacks from regulators, as regulatory investigations on cryptocurrency exchange platforms have fallen.
Related: February on charts: SEC has dropped 6 cases, memecoin craze cools and more
But the longer the implications of a Trump administration remain unclear, according to Hianman. “Recent events, such as the President of Argentina unexpectedly endorsed a pump-and-dump memecoin, highlighting the risks of political figures engaged in crypto.”
Meanwhile.
The encouraging X Post appears to move to crypto markets. Source: Eric Trump
How to restore market price growth
What, if anything, can the administration do in the coming months for Bitcoin and other coins to restore market price growth?
“The continued development of regulatory guidance, especially about lowering barriers for Trade participation, is probably the one that is the most bullish development currently played,” McKay said. He does not think that the “axing” of the Sab 121 is highly appreciated by the market – another reason is that prices may rise soon.
There are other long-term drivers who have not been discussed in recent news cycles but critical for future adoption and market price growth, including ongoing powerful demand for Crypto (ETF) exchange funds, rising corporate and sovereign adoption, and “the creeping post-halving shock shock,” McKay added.
Then, also, temporarily lower prices for bitcoin, ether (Eth) and other cryptocurrencies are not necessarily a bad thing. They can represent a purchase opportunity. “It is surprising not to see massive players and even retail investors who survived (the prospect of purchase) of crypto today is essentially 20% -25% cheaper,” said businessman D’Anathan.
Hlandeman hopes the new administration will bring its commitment to create a crypto reserve within the US government, which will surely provide industry assistance, even if the sector has turned away far from the decentralized sources of Cypherpunk of Crypto.
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