Trump effect: Why crypto markets could lose steam after inauguration

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AMB Crypto 11 months ago 128

  • The post-election market surge sees Bitcoin gaining 30%, with XRP ($2.29) and ADA ($0.53) outperforming.
  • Analysts predict potential Bitcoin correction amid mixed altcoin performances and investor caution.

The cryptocurrency market experienced a remarkable surge following Donald Trump’s victory as the 47th President of the United States.

This post-election boom has sparked widespread optimism among investors, with many attributing the bullish momentum to the election outcome.

However, discussions are emerging around a potential slowdown, as historical data on market trends during U.S. election years suggests that the rally might taper off following Trump’s inauguration on 20th January 2025.

These insights bring caution to the otherwise optimistic crypto market sentiment.

What are historical trends suggesting?

Historical patterns analyzed by Bloomberg and Macrobond Financial reveal that U.S. markets, including stocks and cryptocurrencies like Bitcoin [BTC ($102,954.00)], often rally in the weeks following a presidential election but tend to lose momentum once the President-elect takes office.

The current market surge, fueled by optimism surrounding the incoming administration, mirrors this trend, with the S&P 500 recently achieving its 50th record close of the year.

However, with over tw...



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