Originally published on: December 02, 2024
As the US gears up for President-elect Donald Trump’s inauguration on January 20, 2025, insights from historical market data suggest that the cryptocurrency market’s upward trajectory may slow down post-inauguration.
Research has indicated that in US election years, stocks and popular cryptocurrencies like Bitcoin tend to perform strongly in the weeks following a presidential election. However, this bullish trend often tapers off once the President-elect assumes office. This trend is particularly noticeable when the incumbent president belongs to the Republican Party, known for its business-friendly policies that spark post-election market optimism.
Experts warn investors to be cautious of a potential market correction following a post-inauguration rally, especially if the S&P 500 exceeds certain targets. While the initial correction may happen, historical data suggests that the market tends to rebound after this phase.
Bitcoin, the leading cryptocurrency, has experienced significant gains since Trump’s election victory, drawing attention to its bullish trend. Analysts predict that Bitcoin’s rally may continue post-inauguration, albeit with some expected fluctuations along the way.
As investors anticipate the cryptocurrency market peak in the latter half of 2025, they remain vigilant of Bitcoin’s correlation with US equities like Nasdaq. The relationship between Bitcoin and traditional markets has weakened slightly in recent months, indicating a more independent trajectory for the digital asset.
Despite potential market fluctuations post-inauguration, experts remain optimistic about the continued growth of the cryptocurrency market in 2025.
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