As the US presidential election draws near, Donald Trump’s odds on crypto betting platforms have climbed, indicating potential significant effects on Bitcoin prices if he wins a second term. Market expert Patrick H. warns the favorable conditions currently supporting Bitcoin's rally may alter if Trump’s fiscal policies are enacted.
Patrick H. notes that if Trump is re-elected, appointing Elon Musk to lead the proposed Department of Government Efficiency (DOGE) may end aggressive money printing. Such a shift could limit upward movements in Bitcoin prices, with Patrick emphasizing the market might not fully contemplate the consequences of Trump's victory.
Concerns also arise from the Bank of Japan regarding potential 'economic shocks' in 2025 if these policies are implemented. Market analyst Miles Deutscher mentions that while Bitcoin is near all-time highs, market activity feels quiet, attributing this to the absence of retail investors which he deems crucial for momentum.
Altcoins have experienced substantial rallies attributed to increased interest in sectors like artificial intelligence and meme coins without immediate retail involvement. Deutscher highlights the Pareto Principle in crypto markets, indicating significant price movements occur mostly without retail participation during the early stages.
Deutscher suggests retail investor interest usually materializes after price momentum is evident. Despite a recent rally duration mirroring past cycles, the expert predicts shortened engagement timelines due to trust built in prior rallies. The Bitcoin rally’s current trajectory could serve as marketing for the cryptocurrency market overall.
The observed 'wealth effect' from Bitcoin’s renewed strength could elevate altcoin values, creating a positive ripple effect. At present, Bitcoin has rebounded to $72,000 after a minor correction. This hints at further gains, reinforcing the optimistic outlook amidst a quietly shifting market landscape.
