Ahead of the US presidential election, former President Donald Trump’s odds on crypto betting platforms such as Polymarket have soared, with analysts predicting significant implications for Bitcoin prices if he gets a second term in the Oval Office.
However, market expert Patrick H. warns that the current favorable conditions support Bitcoin’s rally in a new direction record high may change dramatically based on Trump’s fiscal policy proposals for the coming year.
‘No Money Printing, No Profit’
Recently analysis shared onDOGE), the era of aggressive money printing may be coming to an end.
During Trump’s rally at Madison Square Garden on Sunday, the Tesla CEO revealed plans for the DOGE initiative, recommend this could reduce federal spending by at least $2 trillion.
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Patrick H. argues that without continued money printing, Bitcoin’s upward price movement may be limited. “There is no money printing, no price increases,” he said.
The expert believes that markets may not have fully priced in the consequences of a Trump win on both crypto currency and the stock market outlook for 2025.
Additionally, Patrick expressed concern regarding the Bank of Japan’s concerns about the US stock market if Trump implements this proposed policy. He warned that such changes could cause an “economic shock” in 2025, further complicating the crypto price landscape.
Bitcoin Rally And Its Potential Impact On Altcoins
Delving into the current price dynamics, market analyst Miles Deutscher recently said that even though Bitcoin is trading just below its all-time high, the market feels “very quiet,” connect That silent on the lack of retail investor participation, which he says is critical to driving momentum in the cryptocurrency market.
Deutscher gave an example, from October 2023 to March 2024, altcoins experienced significant rallies, with many up four to five times their lows. Coins in trending sectors, especially those related to artificial intelligence and meme coins, even saw a 10 to 15-fold increase during this period.
However, the analyst highlighted that interest in retail only resurfaced in February, as evidenced by metrics such as Google Trends, app store rankings and YouTube views.
Deutscher is confident these delays will occur retailer This involvement raises an important point: large price movements in cryptocurrencies often occur without direct retail participation.
According to analysts, the Pareto Principle applies here—80% of profits typically occur during the final 20% of price movement. This means that retail investors tend to wait until significant upward momentum has been established before entering the market, thus indicating further price increases in the next few months.
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In the current context, the recent altcoin rally lasted just four weeks after a six-month downtrend. Deutscher cautioned that in previous cycles, it took retail investors five months to realize a market recovery.
The analyst predicted a similar pattern might play out again, although he noted that confidence built during the rally in March could shorten the time frame for policy updates. retail interests. However, Deutscher emphasized that Bitcoin breaking its all-time high would be a strong marketing hit for the entire cryptocurrency space.
Ultimately, the analysts explained that the “wealth effect” resulting from Bitcoin’s current rally will likely catalyze further increases in altcoin prices, creating a positive ripple effect across the market.
At the time of writing, the market’s largest cryptocurrency has managed to regain the $72,000 level after a brief correction to $71,400 in the last 24 hours.
Featured image from DALL-E, chart from TradingView.com