According to experts, the inauguration of Donald Trump on Monday is unlikely to cause any major price movements for major cryptos. Decrypt before Friday night's surprise drop of an official Trump meme coin.
Some experts believe that since November 5th, the Republican victory in the election, established coins, such as Bitcoin and Solana have risen substantially.
“I do not anticipate any significant movements on Monday,” Ruslan Liedkha, YouHodler’s head of markets told Decrypt.
“The event appears to be already priced in, and the inauguration is mainly ceremonial rather than market-moving,” “He added.”
Some observers point out that there is also the possibility of an a “sell-the-news” Bitcoin has already seen a strong rise in value in the days leading up to Trump’s inauguration.
“With [positive] CPI data already priced in and Trump’s inauguration unlikely to introduce any immediate, game-changing policies for crypto, Monday could see a pullback as short-term traders lock in gains,” Anndy Lian suggests Anndy Lian. She is a blockchain adviser and author who works for an intergovernmental organization.
The warnings of figures like BitMex founder Arthur Hayes who said last month that Bitcoin could suffer from a devaluation are more stern. “vicious sell-off” Trump’s first day in office
Swarm founder Philipp Pieper says he isn’t as pessimistic, as Hayes. Decrypt It is important to note that the announcement itself does not provide any additional information.
“It's really important to underline here that any price movement on Monday is going to be mostly noise in the bigger picture,” He explained.
This picture may change once Trump’s administration begins to function. Traders are waiting to see if the President-elect can live up to his earlier promises.
“I’m more closely focused on what he (and his administration) will implement over the next few months,” Simon Peters, eToro’s market analyst, told Decrypt.
Peters noted that Trump had complained in a recent news conference about the high interest rates. “far too high,” It is possible that the next President will try to reduce them.
“A loosening of financial conditions under his administration could provide a tailwind for crypto-asset prices,” Peters Adds.
Assuming that reports regarding executive orders relating to cryptocurrency are correct, analysts seem fairly certain that this year’s market trajectory will be positive.
Pieper explained: “As the regulatory environment becomes clearer and the market grasps tangible updates for the first year of the Trump administration, we’re likely to see a general uplift in prices.”
The combination of legislative and regulatory actions is also expected to be combined with macroeconomic indicators that are tentatively improving, like US inflation.
“Inflation and rate sensitivity matters because it ultimately has a major say in the outlook for money supply and market liquidity,” said Pieper. “The more liquidity in the market, the more it will raise asset prices.”
Analysts warn, however, that Donald Trump’s economic policies may indirectly affect the crypto market.
“Other policies, such as the potential intensification of trade wars and the imposition of new tariffs, could sustain elevated inflation levels and exert downward pressure on financial markets,” Ruslan LIENKA, Youhodler.
It is probably premature to expect big moves Monday. The market needs to see the new administration act in order to begin separating perceptions and reality.
A greater level of volatility may be experienced by tokens with smaller caps and meme coins (which are political in nature).
“For instance, tokens like MAGA or DOGE [Department of Government Efficiency] may stage a rally, influenced by emotional trading rather than substantive factors,” Lienkha is a suggestion.
Phillipp Piper, however, warns that, due to their low liquidity, they could just as easily crash.
“The issue with these kinds of token is they’re largely sentiment-driven which can be extremely volatile and difficult to underpin the inherent value,” “He said”
Stacy Elliott is the editor.