The Inauguration of Donald Trump on January 20th Became a "Breaking News" Event for Bitcoin

The rapid rise in Bitcoin's price to an all-time high after Donald Trump's victory in the US presidential election has been constrained by macroeconomic barriers, prompting analysts at K33 to reassess their previous prediction that the inauguration on January 20th will trigger a "news sell-off" event. K33 analysts Vetle Lunde and David Zimmerman previously suggested that the Bitcoin price surge, driven by promises in Trump's cryptocurrency campaign, will face reality check as Washington's political processes slow down expectations. However, the case for bearish news is becoming less compelling as the inauguration approaches, analysts wrote in a report today. The report outlines the competitive forces in the market, including the inflationary impact of Trump's tariff rhetoric and the potential support that tax-cutting and cryptocurrency-friendly policies will bring to risk assets. "The excitement of November comes and goes as the S&P 500 narrows the gap after the election and Bitcoin reaches its lowest level in two months," analysts wrote. "Our monthly outlook is to sell the news on the inauguration, but we are reiterating that strategy because selling Bitcoin on the inauguration is much less attractive unless there is new momentum in the days ahead". Bitcoin has dropped nearly 18% to around $89,000 on Monday after reaching a peak of over $108,000 on December 17. This decline is due to macroeconomic pressures, including rising 10-year treasury bond yields, a stronger US dollar, and forecasts of increasing inflation, along with diminishing expectations of Fed interest rate cuts. Analysts say: "The market was driven by Trump's enthusiasm from November to mid-December, but since then, conservatism and caution have taken precedence". Despite short-term fluctuations, K33 still maintains a long-term bullish view on Bitcoin during Trump's presidency. Trump often points to stock market performance as an indicator of economic success in his first term, driven by policies such as tax cuts, deregulation, and trade agreements. Analysts predict that this rhetoric will repeat, potentially benefiting Bitcoin and other risky assets. The report states, "We still maintain a long-term bullish outlook on the impact of Trump on Bitcoin," the report said, showing optimism for BTC as the new administration takes office. DYOR! #Write2Earn #MicroStrategyAcquiresBTC $BTC {spot}(BTCUSDT)