A prominent cryptocurrency trader has predicted that Bitcoin's price could remain relatively flat until Donald Trump's presidential inauguration on January 20th, 2025, potentially followed by a strong upward movement.
The analyst, known as The Crypto Dog, bases this forecast on historical patterns observed during previous presidential transitions. He points to similar rallies that occurred after past inaugurations, including a notable 100% price increase following President Biden's 2021 inauguration.
"The crypto market tends to gain momentum after new presidents take office," explains The Crypto Dog in a recent post on X. This pattern was also evident in 2017's market behavior during the presidential transition period.
However, the analyst notes that this prediction could change if the traditional stock market, particularly the S&P 500, maintains its current upward trend. The recent introduction of Bitcoin ETFs has strengthened the relationship between cryptocurrency and conventional market movements.
The increasing correlation between Bitcoin and traditional financial markets suggests that strong stock market performance could potentially trigger earlier crypto market gains, even before the inauguration date.
This analysis comes as market participants closely watch both political developments and traditional market indicators to gauge Bitcoin's future price direction in early 2025.