In its latest blockchain letter, Pantera Capital claims that the upcoming inauguration of Donald Trump should propel bitcoin to new heights. The asset manager refutes the application of the stock market adage “buy the rumor, sell the news” to the crypto market, while bitcoin is currently trading around $95,000.
History repeats itself with the American elections, Bitcoin ready to jump!
Pantera Capital, an investment company specializing in cryptos, has published its analysis “The Year Ahead in Crypto” from its offices. The report draws a parallel between two major events: the launch of spot Bitcoin ETFs in January 2024 and the upcoming inauguration of Donald Trump. In both cases, the asset manager anticipates persistent upward momentum, contrary to the tradition of traditional financial markets.
Recent history seems to prove them right. Since the approval of spot Bitcoin ETFs, the leading crypto has seen an increase of more than 100% and the funds have attracted more than $40 billion in investments. A performance which demonstrates that the crypto market can maintain its momentum well after positive news becomes official.
The pro-crypto position displayed by Donald Trump reinforces this optimistic outlook. His strategic appointments, notably that of Paul Atkins at the head of the SEC and David Sacks as crypto advisor at the White House, demonstrate a desire to support the development of the blockchain industry.
A macroeconomic context to monitor
While bitcoin recently took a break after surpassing $100,000 in December, Pantera attributes this slowdown has more to do with monetary policy than with political uncertainties. The prospect of a slower than expected reduction in key rates by the Federal Reserve and the strengthening of the dollar temporarily weighed on risky assets.
Several industry experts, including Jack Mallers, CEO of Strike, anticipate strong measures as soon as the new president takes office. The possible signing of a decree recognizing bitcoin as a reserve asset is one of the scenarios discussed, which could trigger a new wave of institutional adoption.
Scott Mason, policy advisor at Holland & Knight, points out that Trump's arrival strengthens the legitimacy of bitcoin among traditional investors. This increased credibility, combined with a potentially more favorable regulatory framework, could catalyze the next phase of the bull market.
Pantera Capital analysts therefore conclude that the American election, far from being a simple speculative event, constitutes a real structural turning point for the crypto market. The convergence between institutional adoption and political support should, according to them, fuel the rise of bitcoin.
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