What Could Happen to the Price of Bitcoin on Trump's Inauguration Day?

The cryptocurrency market is gearing up for chaos as the new US government takes office. The largest cryptocurrency, Bitcoin, is recovering from an unstable start to the year as investors debate the future of cryptocurrency under the Trump presidency. Tanaya Macheel, a market analyst, believes that the first quarter could be a volatile quarter as conflicting factors emerge in the government's legislative agenda. The White House and Congress supporting cryptocurrencies create an opportunity for better management, while other policies such as tariffs could put pressure on the price of Bitcoin. Bitcoin has increased by over 45% in the month following the election, but concerns about tariffs have dampened enthusiasm and posed risks for both cryptocurrencies and the overall market. 'This clash between regulations favoring cryptocurrencies and a stronger dollar highlights the dual nature of government influence on cryptocurrency transactions,' said Macheel. Despite short-term risks, analysts remain optimistic about the long-term potential of Bitcoin. It has been a year since the approval of the Bitcoin ETF and their increasing popularity, combined with regulatory clarity, could drive the price of Bitcoin. Some investors believe BTC could double in value by the end of the year, thanks to congressional debates on issues like stablecoin and market structure. However, Macheel warns that the impact of any regulatory developments may not materialize until the end of this year, creating market instability in the meantime. Phil, an investment portfolio manager, has noted the impact of Bitcoin ETFs such as BlackRock's IBIT, the most successful ETF launch in history. However, he noted that a change occurred last week when the fund recorded a significant outflow of $337 million in just one day. Phil believes that the consolidation phase of Bitcoin could lead to higher levels or temporary weakness in the hands of the weak. Although the inauguration may trigger a "buy the rumor, sell the news" reaction, it could set the stage for a stronger price increase. DYOR! #Write2Earn #Write&Earn $BTC {spot}(BTCUSDT)