There are now only a few days left until Donald Trump takes office as the 47th President of the United States of America, but what are the current forecasts for the price of Bitcoin?
In this article, we try to gather our thoughts, presenting the possible forecasts on the price of the cryptocurrency in this first year of the Trump administration.
Let’s see all the details below.
Donald Trump ready to enter the White House: what does it mean for Bitcoin price forecasts?
On January 20, Donald Trump will officially become the new President of the USA, with Joe Biden handing over the baton to the Republican rival.
According to financial market experts, this event could trigger profound changes in the current outlook of speculative exchanges, especially concerning the stock sector and Bitcoin.
Many indeed know that Trump, based on the previous term 2017-2021, measures the success of his presidency with the results of the bull and bear markets.
The same plans to reduce the tax rate of American companies from 21% to 15%, resulting in a significant advantage on the profits of the listed companies.
This expansive policy line, mixed with the probable new monetary stimuli that will be launched by the FED in 2025, will likely stimulate the prices of USA stocks.
In turn, Bitcoin, the speculative asset par excellence, will potentially see new investment inflows in a context where stocks perform well. Investors are indeed more inclined to shift their capital from bonds/cash to Bitcoin when the stock market moves in a bull direction.
Despite there not being a clear (especially constant) correlation between stocks and Bitcoin, it is clear that the moments when the price of the crypto exploded coincided with the highs of the S&P500.
It is also worth highlighting how in this specific historical context, a little help from Trump to the American markets would particularly benefit Bitcoin, given that we are approaching the maximum levels of Beta correlation with the USA indices.
Some argue that the date of January 20 could result in a “sell the news” on Bitcoin prices, considering the Trump Trade from November with the elections.
It must be said that at this moment on the orange currency, the short-term situation seems to be in the hands of the bear, with prices that have just broken the daily EMA 50.
In any case, apart from the initial speculation on the event, we expect that the new Trump presidency will be able to support Bitcoin for the rest of 2025.
Scott Bessent, candidato alla carica di Segretario del Tesoro, wants to bet on Bitcoin
Another factor that fuels bullish predictions about the impact of Donald Trump on bitcoin prices is the support that the Republican has shown towards the cryptocurrency during his 2024 election campaign.
The Tycoon has indeed repeatedly reiterated his idea of making Bitcoin an asset of the American Treasury, while simultaneously enhancing the mainstream adoption of the resource.
This choice would certainly cause the price of the currency to soar, as it would need to be purchased spot on the market.
Furthermore, this situation would also encourage other nations outside the USA to replicate the same strategy, gaining a competitive advantage on the price of Bitcoin.
Well, today this possibility sees new positive developments, especially after the statements of Scott Bessent, candidate for the position of Secretary of the Treasury under Trump’s leadership.
According to a report from the New York Times, Bessent would have implied that in the event of her election, she will follow Trump’s instructions to add Bitcoin to the USA’s coffers.
He has indeed stated that he intends to liquidate several assets, including investments in exchange-traded funds (ETF) based on bitcoin, to avoid conflicts of interest.
Bessent, who holds a position as a hedge fund manager, should sell holdings in Bitcoin for about 250-500 thousand dollars, to be able to embrace this new financial line.
The billionaire, in a letter to the ethics office, promised that he would avoid:
“any real or apparent conflict of interest in the event that I am confirmed for the position of Secretary of the Treasury Department”.
This makes us think that, if elected, he will immediately make Bitcoin an asset of the American Treasury, positively influencing its price.
The pro-crypto candidate’s line could help stop the growing federal debt, in a context of extending tax cuts and eliminating social security taxes.
Cryptocurrency Price Forecast for 2025: bulls Aim for $140,000
If everything goes according to plan, highly bullish price forecasts are expected for Bitcoin, which hypothesize new bullish leg ups from now until the end of the year.
According to what was reported on X by the technical analyst “Ali_charts”, if Bitcoin were to break upwards from the current bull pennant pattern, it could move towards new highs.
In particular, the expert’s target would aim for a price of 140,000 dollars per single BTC, about 54% more than the current levels.
This scenario would go in the opposite direction to the idea of the bears, according to which Bitcoin would be in a head and shoulders pattern, with bearish forecasts on the horizon.
Obviously, before moving to a quotation of 140,000 dollars, which would imply a capitalization of 2.77 trillion dollars, there should be intermediate steps.
First of all, the cryptocurrency should return to 106,000 dollars, to regain that bull outlook that characterized the month of November 2024.
Subsequently, it would be the turn of 120,000 dollars as the new ATH level, and finally, as the last stop before the cycle highs, that of 128,000 dollars.
Beyond the forecasts of “Ali_charts”, almost all experts in speculative markets agree that 2025 will bring great excitement to holders of Bitcoin.
In the short term, the quotations could make room for other bearish turbulences, such as to drive away the less resilient from the market and establish a scenario of terror.
Once the balance is restored in the wake of Donald Trump’s inauguration, we could likely observe a rapid “buy the dip” and a subsequent bull.
Unless we encounter serious obstacles on the road such as a reluctance of the FED towards quantitative easing, or a weakness in the US real estate and labor market, the road for Bitcoin seems to be already mapped out.
Buckle up and enjoy the journey into space.