- Pantera Capital views the U.S. presidential election as a unique “buy the rumor, buy the news” event, aligning with Bitcoin’s potential momentum under Trump’s pro-crypto policies.
- Trump’s leadership, including crypto-friendly appointments and potential regulatory clarity, is anticipated to fuel Bitcoin’s long-term adoption and price growth.
According to Pantera Capital’s latest blockchain letter, the U.S. presidential election is seen as a “buy the rumor, buy the news” event, deviating from the traditional market adage where assets often rally on speculation but decline after confirmation. Pantera compared this optimism to the launch of spot Bitcoin ETFs in 2024, which triggered a 100% price surge and drew $40 billion in inflows.
At the time, a CNF update discussed a similar development, speculating that Bitcoin ETF approval would be a “buy the rumor, sell the news” event. The Bitcoin and broader crypto market are gearing up for a strong year in 2025, buoyed by the upcoming inauguration of President-elect Donald Trump.
Trump’s Pro-Crypto Stance
Bitcoin’s recent rally past $100,000 in December cooled amid a hawkish Federal Reserve and a rising U.S. dollar, but Trump’s pro-crypto policies are expected to reignite momentum. Industry experts, including Strike CEO Jack Mallers, have speculated that Trump could take decisive actions, such as declaring Bitcoin a reserve asset early in his administration.
Nevertheless, as CNF pointed out earlier,U.S. Elections Drive High BTC Volatility Expectations. Trump’s appointments, including Paul Atkins as SEC chair and David Sacks as AI and crypto czar, have further fueled optimism, signaling potential regulatory clarity and innovation for the blockchain sector.
Broader Impacts on Crypto, Including Bitcoin
It is also worth noting that, as a comparison, December 2024 saw confirmed losses of ~$28.6 million to exploits, hacks, and scams, according to a tweet by CertiK Alert. These figures were the lowest monthly losses recorded in 2024, with exit scams accounting for ~$0.2 million, flash loans ~$1.7 million, and exploits ~$26.7 million.
Trump’s support for cryptocurrency has strengthened its credibility among policymakers and the market. Holland & Knight senior adviser Scott Mason emphasized that Trump’s presidency could positively influence Bitcoin’s price and adoption.
While some traders remain cautious about a short-term correction, many believe the new administration will contribute to a renewed bull market for Bitcoin and other digital assets. With Pantera and others predicting sustained momentum, the crypto space is set to closely monitor the intersection of political shifts and market dynamics in 2025.
As of now, Bitcoin (BTC) is trading at $95,085.78, reflecting a 0.56% increase in the past day but a 6.64% decrease in the past week.
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