As the US presidential election approaches, former President Donald Trump's odds on crypto betting platforms like Polymarket have increased, with analysts predicting significant implications for bitcoin prices if he wins a second term in the Oval Office .
However, market expert Patrick H. warns that the current favorable conditions supporting bitcoin's advance into a new record may change dramatically under Trump's proposed tax policies for next year.
'No money printing, no profits'
In a recent x.com/CryptelligenceX/status/1851667064420733103″ target=”_blank” rel=”nofollow”>analysis Shared onDOGE), the era of aggressive money printing could be coming to an end.
During a Trump rally at Madison Square Garden on Sunday, the Tesla CEO revealed plans for the DOGE initiative. suggestion could reduce federal spending by at least $2 trillion.
Related reading
Patrick H. argues that without continued money printing, there may be limited upward movement in bitcoin prices. “Money will not be printed, prices will not rise,” he said.
The expert believes the market may not be fully taking into account the ramifications of a Trump victory in both cryptocurrency and stock market outlook for 2025.
Additionally, Patrick raised alarm bells about the Bank of Japan's concerns regarding the US stock market if Trump implements these proposed policies. He warned that such changes could cause an “economic shock” in 2025, further complicating the cryptocurrency price picture.
bitcoin Rally and Potential Impact for Altcoins
Delving deeper into the current price dynamics, market analyst Miles Deutscher recently said that despite bitcoin trading just below its all-time highs, the market feels “unusually calm.” x.com/milesdeutscher/status/1851685752545153266″ target=”_blank” rel=”nofollow”>attribute he The silence is due to the lack of participation from retail investors, which he says is crucial to driving the momentum of the cryptocurrency market.
Deutscher noted that from October 2023 to March 2024, alternative currencies saw significant rallies, with many rising four to five times from their lows. Coins in trending sectors, particularly those related to artificial intelligence and meme coins, even saw 10- to 15-fold increases during this period.
However, the analyst highlights that it was not until February that retail interest resurfaced, as evidenced by metrics such as Google Trends, app store ranking, and YouTube views.
Deutscher believes that this delay in retail The commitment raises an important point: substantial price movements in cryptocurrencies often occur without immediate retail participation.
According to the analyst, the Pareto principle applies here: 80% of profits usually occur during the last 20% of a price movement. This means that retail investors tend to wait until significant bullish momentum has been established before entering the market, suggesting further price gains in the coming months.
Related reading
In the current context, the recent rally in altcoins has only lasted four weeks after a six-month bearish trend. Deutscher recalls that in the previous cycle, it took five months for retail investors to notice the market recovery.
The analyst predicts that a similar pattern could repeat itself, although he affirms that the confidence generated during the March rebound could shorten the deadline to renew retail interest. Still, Deutscher emphasizes that bitcoin surpassing its all-time highs would serve as powerful marketing for the entire cryptocurrency space.
Ultimately, the analysts explain that the “wealth effect” resulting from the current bitcoin rally is likely to catalyze further increases in altcoin prices, creating a positive ripple effect throughout the market.
At the time of writing, the largest cryptocurrency on the market has managed to regain the $72,000 level after a brief correction to $71,400 in the last 24 hours.
Featured image of DALL-E, chart from TradingView.com
