Market Experts Profile Donald Trump’s Inauguration as Lacking in Price Action

Market Experts Profile Donald Trump’s Inauguration as Lacking in Price Action

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Cryptocurrency analysts expect the opening ceremony on January 20 to be mainly celebratory and price-in, rather than market-influential.

The swearing-in of Donald Trump has attracted active debate across the cryptocurrency community, with market experts weighing whether the inauguration event will lead to any movements in the prices of key digital assets. Industry experts who expressed their opinions ahead of the surprise launch of the official Solana-based TRUM meme coin were circumspect.

Established digital assets, including Solana, Bitcoin, and Ripple, posted impressive gains after the Republican victory over the Democrats. Experts attribute this increase to the fact that the cryptocurrency market has already priced in the opening.

Minimal movement from the swearing-in event

YouHodler Chief Markets Officer Ruslan Lienkha, Head of Markets, ruled out any breakout price moves on January 20. The executive added that Monday’s event appears priced in that it is primarily celebratory and not market-driven.

Other observers point to the possibility of the token pulling a sell-off on the news as Bitcoin rose strongly toward a new peak in the hours before Trump’s inauguration. Intergovernmental blockchain expert Andy Lien points out that the market has already priced in the positive CPI data. Cryptocurrency author rules out Trump inauguration, offering any immediate, game-changing policies. Some will likely show a pullback as short-term traders take profits.

The conservative view aligns with stark warnings issued by former BitMex president Arthur Hayes. The co-founder of the cryptocurrency exchange warned that Bitcoin could face a fierce sell-off after Trump returns to the Oval Office.

Although not as pessimistic as Bitmex Hayes, Philip Pepper, CEO of Swarm, noted that the opening hardly provides the market with new information. He added that any price movement from Monday’s event will often result in noise.

Analysts agree that the picture may change when Trump starts working, with traders optimistic that the president will make early statements. Simon Peters, eToro’s chief market officer, admitted he was closely monitoring the implementation of the Trump administration.

Political and legal development is the key to higher prices

Peters added that Trump’s recent statement denounced high interest rates. This suggests that the next president may push to lower interest rates. Easing financial conditions will provide the necessary wind to lift crypto asset prices.

Analysts noted that the delivery of promised executive orders related to cryptocurrencies will lead to an upward trajectory for digital assets this year.

Bieber noted that a general rise in cryptocurrency prices is coming as regulations become increasingly clear and the market benefits from concrete updates that the Trump administration will provide.

Pepper expects that regulatory and legislative developments are likely to combine to strengthen macroeconomic indicators, especially inflation in the United States. He added that inflation and price sensitivity are factors affecting market liquidity and money supply. Providing more liquidity would lead to higher asset prices.

Are Trump’s policies a zero-sum game?

While the pro-crypto stance and promise of a crypto-friendly macro economy provide opportunities for potential price hikes, some policies could indirectly hamper the industry.

Youhodler’s Ruslan Lin points out that intensified trade wars and new tariffs could keep inflation high. This could put downward pressure on the entire financial ecosystem.

The possibility of such negative outcomes is a reason to drop early forecasts of major moves from Monday’s event. The new administration must implement its promises to the market so that it responds to reality.

Monday’s event could leave many small-cap tokens vulnerable to volatility, especially politically themed memes. Lienkha noted that MAGA and DOGE tokens can rise because they are subject to emotional trading and not fundamental factors.

Piper warns that small tokens can easily decline when they face low liquidity levels. He explained that the challenge could impact tokens that are largely sentiment-driven. They have high volatility and are challenging to support fundamental value.

Editorial credit: Jonah Elkowitz / Shutterstock.com




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