Why haven't cryptocurrencies exploded with the new US president yet?
Many people expected that, with the inauguration of the new US president, the cryptocurrency market would skyrocket. But why hasn't this happened yet?
The answer involves a combination of factors:
1️⃣ Uncertain Regulations – The US government has not yet given a clear signal on how it will regulate the sector. Investors are cautious, waiting for definitions on taxes, rules for exchanges and even possible restrictions.
2️⃣ High Interest Rates – The Federal Reserve (US central bank) still maintains relatively high interest rates to control inflation. This makes money more attractive in traditional applications, pushing away riskier investments, such as crypto.
3️⃣ Market Manipulation – Large investors (the “whales”) may be holding back the movement to accumulate more before a big appreciation. This has happened before and may be happening again.
4️⃣ Competition from Tokenization – With banks and traditional companies investing in regulated digital assets, many investors are choosing this path over traditional cryptocurrencies.
5️⃣ Natural Market Cycle – Crypto follows a pattern of cycles, and the big rally may still be coming, possibly driven by the Bitcoin halving or new technological advances in the sector.
In other words, it is not time to give up yet. On the contrary, the coming months may bring incredible opportunities. Are you ready?
