The post Is crypto’s ‘Trump effect’ short-lived? appeared on BitcoinEthereumNews.com.

Many in the crypto community believed that US President Donald Trump’s second-term election would send Bitcoin prices skyrocketing, and it did — from $69,374 on Election Day (Nov. 5) to a record $108,786 when the new administration took office on Jan. 20.  But since that time, the price of Bitcoin (BTC) has mostly fallen, dropping below $80,000 on Feb. 28 — a 26% decline. The new administration stormed into office committed to establishing a strategic crypto reserve, crypto-friendly cabinet appointments, and market-structure reform legislation, among other changes. It has mostly delivered on its promises so far.  Still, it’s not too early to ask: Has the “Trump effect,” the surge in Bitcoin’s price anticipated from the election of America’s first crypto-friendly president, been oversold? Perhaps macro factors, like a looming tariff war and a weakening global economy, are to blame for the slumping market prices. Then there was the Bybit hack in late February, which drained $1.4 billion from the world’s second-largest crypto exchange by volume. Perhaps the Trump administration itself is even to blame for fostering chaos and insecurity in its first six weeks in office? “Macro factors and crypto blowups combine to erode confidence,” noted Bloomberg on Feb. 25. Elsewhere, the Financial Times observed that while some investors were hoping Trump’s election would herald a golden era for crypto, others, such as prominent US hedge fund Elliott Management, were warning that Trump’s embrace of crypto could lead to an “inevitable collapse” that “could wreak havoc in ways we cannot yet anticipate.”  A “healthy correction”? “While the recent Bybit situation has been significant, Bitcoin’s price momentum shift started well before the record-setting $1.46 billion hack,” Garrick Hileman, an independent cryptocurrency analyst, told Cointelegraph.  Indeed, the correction follows traditional market cycles — i.e., a “classic” case of “buy the rumor, sell…

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Filed under: News - @ March 5, 2025 8:24 am