Trump’s Proposed Policies Could Limit Bitcoin Price Growth, Expert Warns
As the US presidential election nears, Donald Trump's odds on crypto betting platforms like Polymarket have increased, with analysts suggesting potential impacts on Bitcoin prices if he wins a second term.
Market expert Patrick H. cautions that favorable conditions supporting Bitcoin's ascent to a new record high may change significantly under Trump's fiscal policies.
‘No Money Printing, No Gains’
In a recent analysis on X (formerly Twitter), Patrick H. suggested that a Trump re-election could halt aggressive money printing if Elon Musk heads the proposed Department of Government Efficiency (DOGE). Musk indicated during a rally at Madison Square Garden that this initiative might cut federal spending by at least $2 trillion.
Patrick H. argues that without ongoing money printing, Bitcoin price growth may be limited: “No money printing, no price going up.” He believes the market is not fully considering the implications of a Trump victory for cryptocurrency and stock markets in 2025. He also raised concerns about the Bank of Japan’s views on the US stock market under Trump's policies, warning of a potential “economic shock” affecting crypto prices.
The Bitcoin Rally And The Potential Impact For Altcoins
Market analyst Miles Deutscher noted that despite Bitcoin trading near its all-time highs, the market feels “unusually quiet,” attributing this to low retail investor participation, which is essential for market momentum.
From October 2023 to March 2024, altcoins saw significant rallies, with many rising four to five times from their lows. Sectors like artificial intelligence and meme coins experienced increases of 10 to 15 times. However, retail interest did not return until February, as indicated by metrics such as Google Trends and YouTube views.
Deutscher pointed out that substantial price movements often occur without immediate retail engagement, aligning with the Pareto Principle—80% of gains typically happen during the final 20% of a price movement. Retail investors generally wait for established upward momentum before entering the market, indicating further price gains ahead.
The recent altcoin rally has lasted four weeks following a six-month downtrend. Previous cycles showed it took five months for retail investors to notice market recovery. Deutscher predicts a similar pattern may emerge but believes trust built during the March rally could shorten the timeframe for renewed retail interest. He notes that Bitcoin surpassing its all-time highs would serve as effective marketing for the entire cryptocurrency sector.
Ultimately, the “wealth effect” from the current Bitcoin rally is expected to drive further increases in altcoin prices, creating a positive ripple effect across the market.
As of now, Bitcoin has regained the $72,000 level after a brief correction to $71,400 within the past 24 hours.
Featured image from DALL-E, chart from TradingView.com