Cryptocurrencies, led by Bitcoin, have always been at the forefront of financial assets that experience sharp fluctuations, influenced by multiple factors including major political and economic events. With more than 4 months since the inauguration of former U.S. President Donald Trump on January 20, 2025, it is now possible to analyze the impact of this significant political event on the Bitcoin market.

While previous expectations pointed to a significant price rise, some now see that reality has become more complex than anticipated. In this article, we review market developments post-inauguration and analyze what has been achieved from those expectations and what can be drawn for the future.

Bitcoin's performance after the inauguration: What really happened?

Since Trump's inauguration, Bitcoin prices have seen waves of rises and falls, driven by multiple factors including:

  • Statements from the new administration regarding innovation and technology

  • Regulatory expectations towards the cryptocurrency market

  • Ongoing geopolitical and economic fluctuations

In the weeks following the inauguration, Bitcoin's price rose significantly, supported by investor optimism regarding Trump's economic policies, before the market experienced a partial correction due to profit-taking and regulatory concerns.

Reasons that supported the rise in Bitcoin price in the past period

  1. Political and economic optimism:

    Positive signals from the new U.S. administration towards technology and innovation contributed to boosting investor confidence.

  2. Disruptions in traditional markets:

    Some geopolitical and economic crises have led investors to turn to digital assets as an alternative refuge.

  3. Increasing institutional interest:

    There has been a growing interest from major financial institutions in Bitcoin, both as a store of value and as an investment asset.

Factors that limited expected growth

  1. Concerns about regulations:
    Despite the optimism, the new administration's direction regarding the regulation of the cryptocurrency market has not yet been determined, creating a sense of caution among investors.

  2. Profit-taking after the initial rise:
    Traditional market behavior drove some to sell digital assets and realize quick gains.

  3. Global economic pressures:
    Ongoing uncertainty in the global economy has affected the liquidity levels allocated for investment in high-risk assets.

What do experts say today?

Opinions in the cryptocurrency community remain divided. Some see Bitcoin benefiting from political momentum, while others warn against excessive optimism, especially in a rapidly changing regulatory environment.

Lessons learned:

  • Political events like the inauguration of a U.S. president can indeed affect the Bitcoin market, but this impact is often temporary and influenced by other factors.

  • Making investment decisions based on a single event without comprehensive market analysis can be risky.

  • It is important to follow diversification strategies and update expectations according to market changes.

Advice for investors

As the market enters a new phase, it is essential to monitor U.S. policies towards cryptocurrencies, especially concerning regulation and integration with the traditional financial system.

For live updates on Bitcoin prices, it is recommended to visit the price page on the Binance platform:
https://www.binance.com/en/price/bitcoin

$BTC $BNB ##bnb