What are crypto traders expecting from Bitcoin given the upcoming inauguration of Donald Trump?
Donald Trump’s victory in the US presidential election was one of the main events for the crypto market in 2024. However, the newly elected president actively supported the coin industry and promised to bring order to the situation. To this end, the politician declared his readiness to fire SEC Chairman Gary Gensler, approve adequate regulation of the blockchain sphere, and even create a national Bitcoin reserve. And since there are less than two weeks left before the presidential inauguration, this is affecting the activity of cryptocurrency traders.
Analysts really expect serious achievements for the market in 2025. This is confirmed by the latest crypto forecasts from experts at Bernstein.
First of all, they expect Bitcoin to grow to $200,000 and for cryptocurrency to become a recognized asset among companies, financial institutions, and even governments. This will significantly increase the demand for coins, which will obviously affect the rates.
Buying Cryptocurrency by Investors
And while the US may not have time to start accumulating cryptocurrency in 2025, this initiative is enough to establish the corresponding trend. In other words, large companies and entire countries may start acquiring BTC for fear of missing out on a new trend and being among those catching up.
What will happen to Bitcoin after Trump wins?
As experts note, the behavior of traders on the large cryptocurrency options and futures exchange Deribit indicates positive sentiment on the market. However, activity with Bitcoin options has increased, with a strike price of $110,000-$120,000. Accordingly, traders allow for the possibility of the coin growing to such a level.
Options are instruments that give the right to buy or sell an asset at a fixed price. Put options allow you to sell an asset when you expect its value to fall, while call options are used to buy when you expect growth.
In the crypto market, options are used to manage risks and speculations. That is, in general, this is a fairly popular tool among traders.
According to The Block’s sources , call options with a strike price of $120,000 remain the most popular today. The nominal open interest for this instrument is $1.52 billion, which indicates demand from investors.
The put-call ratio, which compares the volumes of the respective options, has fallen to 0.24. And since a ratio below 1.0 indicates that traders prefer calls over puts, traders are now really expecting a positive scenario for the crypto market.
Newly elected US President Donald Trump buys burgers with bitcoins
A report from Amberdata suggests that Donald Trump’s imminent inauguration could be a catalyst for Bitcoin and the coin market as a whole. Here’s a retort on the matter.
Trump’s inauguration and the days that follow present excellent opportunities for optimistic statements or policies that could further push Bitcoin higher. This forecast suggests that new BTC highs will be reached just a few months after Trump is officially inaugurated.
The futures market also hints at traders’ expectations for the crypto market improving. However, long-term funding rates for Bitcoin and Ethereum are still around 10 percent per annum.
According to Ryan Lee, chief analyst at Bitget Research, all of this “points to a stable environment with potential for further market growth.” Overall liquidity is also improving, he said.
The cryptocurrency market is seeing a variety of dynamics that are shaping the outlook for Bitcoin and Ethereum, including the total capitalization of stablecoins, which increased by $3 billion last week.
Tether CEO Paolo Ardoino
BRN analyst Valentin Fournier also voiced his opinion in a conversation with journalists.
The holiday lull is over, and institutional interest is picking up again. This could be the basis for a powerful rally, especially as we look ahead to President Donald Trump’s inauguration on January 20.
JPMorgan experts also shared positive outlook for the crypto market in the near future. According to them, Bitcoin and gold will continue to be the most popular assets in so-called “depreciation deals.” We are talking about trading operations, with the help of which the investor protects himself from a decrease in the value of fiat currencies due to inflation, growing government debt or geopolitical problems.
Here is a remark from analyst Nikolaos Panigirtzoglou.
Gold’s rise over the past year has far outpaced the moves in the dollar and real bond yields, suggesting that so-called bearish trading is still in play.
The popularity of the leading precious metal is confirmed by the volume of gold held by central banks and retail capital holders for investment purposes. This includes physical bullion, gold ETFs and other similar instruments.
Gold and Bitcoin
Bitcoin also remains an important part of investors’ portfolios, apparently helped by speculation about the possible creation of a national BTC reserve by the US government.
Donald Trump's upcoming inauguration will certainly remind the world of the cryptocurrency sphere. After all, the politician actively supported the industry and even became the first US president to conduct a Bitcoin transaction. Therefore, his victory is also associated with the victory of the entire coin market, which is generally well deserved.
