'Trump Effect' Not Working on Cryptocurrency

Cryptocurrency A to Z

Trump's Anti-Immigration and Tariff Policies

Inflation Concerns Hindering Rate Cuts

Bitcoin $100,000→$92,000

Predictions of "Below $90,000"

With just over a week left until Donald Trump, a strong supporter of Bitcoin, is inaugurated as the President of the United States, Bitcoin seems to be struggling to gain momentum.

According to the cryptocurrency data provider CoinMarketCap on the 12th, Bitcoin fell to the $92,000 level as of the 10th. When it surpassed $100,000 during the day on the 7th, optimism was rising ahead of Trump's inauguration, but it dropped by $10,000 in just three days. Robust macroeconomic indicators have heightened inflation concerns, freezing cryptocurrency investment sentiment. If inflation concerns grow, the likelihood of rate cuts being hindered increases.

According to the minutes of the Federal Open Market Committee (FOMC) released by the Federal Reserve on the 8th, almost all Fed members expressed concerns about inflation. The trigger for inflation concerns was the new administration's changes in immigration and tariff policies. Although Trump pledged to strongly support Bitcoin and make the U.S. a cryptocurrency hub, his policies ironically led to Bitcoin's weakness.

Aditya Bhave, an analyst at Bank of America, said, "Even excluding the potential for fiscal easing or tariffs by the Trump administration, inflation is already at a worrying stage," adding, "The risk of a rise in the Personal Consumption Expenditures (PCE), a price indicator emphasized by the Fed, has emerged."

The U.S. Department of Justice's approval on the 9th to sell 69,379 Bitcoins (worth $6.5 billion) seized from the dark web Silk Road also added to market fears. Cryptocurrency data analysis firm Glassnode predicted, "Bitcoin could fall below $90,000 due to fears of the U.S. Department of Justice's sale of seized quantities."