Donald Trump’s inauguration will bring “hype” to the cryptocurrency market for 2025: analysts

Donald Trump’s inauguration on Monday is unlikely to result in any major price movements for major cryptocurrencies, according to industry experts who spoke to Decryption before Friday night surprise From Trump’s official currency.

Established coins such as Bitcoin, Solana, and XRP It rose dramatically Since the Republican won the election on November 5, leading some experts to suggest that the market has already priced in the inauguration.

“I don’t expect any big moves on Monday,” said Ruslan Lenkha, head of markets at YouHodler. Decryption.

“The event appears to have already been priced in and the opening ceremony is mainly ceremonial and not impactful on the market,” he added.

Some observers are also highlighting the potential for a “news sell-off” day for major tokens Bitcoin has already gained strongly In the run-up to Trump’s swearing-in.

“with [positive] “The CPI data is already priced in and Trump’s inauguration is unlikely to deliver any immediate game-changing policies for cryptocurrencies, and Monday could see a pullback as short-term traders make gains,” suggests Andy Lien, an international government blockchain consultant. And author of cryptocurrency.

This suggestion resonates with the stark warnings made by figures like Arthur Hayes, co-founder of BitMex, who… Last month, I predicted that Bitcoin could suffer a “ferocious sell-off” when Trump takes office.

Although he’s not as pessimistic as Hayes, says Philip Pepper, co-founder of Swarm Decryption The opening itself does not provide the market with any new information.

“It’s really important to stress here that any price action on Monday will mostly be noise in the bigger picture,” he explained.

But that picture could change once Trump and his administration get down to business, with traders waiting to see if the current president-elect will live up to it. Previous statements.

“I’m more focused on what he will implement (and manage) over the next few months,” said Simon Peters, market analyst at eToro. Decryption.

Peters notes this Trump complained at a recent press conference Interest rates are “too high,” suggesting the next president may push to lower them.

“Easing financial conditions under his administration could provide a tailwind for crypto asset prices,” Peters adds.

Assuming that Recent reports on executive orders related to cryptocurrencies If accurate, analysts are relatively confident that the overall market trajectory this year will be bullish.

“As the regulatory environment becomes clearer and the market recognizes the tangible updates of the first year of the Trump administration, we will likely see an overall rise in prices,” Piper explained.

Legislative and regulatory moves are also likely to be associated with temporarily improving macroeconomic indicators, e.g US inflation.

“Inflation and interest rate sensitivity are important because they ultimately have a big say in the outlook for the money supply and market liquidity,” Pepper said. “The more liquidity there is in the market, the higher the asset prices.”

However, while the arrival of both macroeconomic and crypto-friendly presidents should point to higher prices overall, some analysts are warning that some of Donald Trump’s other economic policies could indirectly impact the cryptocurrency market.

“Other policies, such as the potential intensification of trade wars and the imposition of new tariffs, could maintain high inflation levels and put downward pressure on financial markets,” warns Ruslan Lenka of Euhodler.

This may be why it is too early to expect big moves on Monday, as the market will need the new management to act before it can begin to differentiate between perceptions and reality.

On the other hand, Monday may expose small value tokens and meme coins to a greater degree of volatility.

“For example, tokens like MAGA or DOGE [Department of Government Efficiency] Lenka suggested that it could see a rally, influenced by emotional trading rather than fundamental factors.

However, Philip Pepper warns that it could collapse just as easily, given its low liquidity.

“The problem with these types of tokens is that they are largely driven by sentiment which can be very volatile and the inherent value is difficult to support,” he said.

Modified by Stacey Elliott.