Why Bitcoin Is Struggling Under Trump’s New Regime: Analyst
The Trump Effect: A Bitcoin Dilemma
Well, well, well, just when you thought Bitcoin would be soaring high on the wings of Trump’s new term, it turns out the cryptocurrency is more like a sad balloon at a kid’s birthday party—deflating rather than elevating. Since that inaugural day back in January, Bitcoin hit its all-time high, but then it decided to play it cool and hang out in the range-bound zone. You know, just chilling with its bearish friends.
Comparing the Bitcoin Buzz
Our pals over at XWIN Research Japan took a stroll down memory lane, looking back at the post-election glee of 2016. Apparently, that was when Bitcoin had its party hat on, thriving in a low-inflation and low-interest-rate playground. It was like a dreamy summer camp where investors were throwing money around like confetti.
The 2025 Market: A Whole Different Ball Game
Fast forward to early 2025, and things are a bit gloomier. The market has turned into this cringey high-rate affair, where financial conditions are cramping styles and making everyone rather irritable. Plus, it seems Bitcoin is no longer the charming underdog; it’s more like that one friend who’s been around too long and is now struggling for attention. It’s just not as easy for politics to sway Bitcoin’s price when the market’s this large, and everyone’s now got an opinion.
Investor Sentiments: The Bitcoin SOPR Ratio
Now let’s sprinkle in some spicy numbers from the Bitcoin SOPR Ratio. This little gem helps decode if the long-term holders (those who’ve been in the game long enough to earn a couple of gray hairs) are running to cash in their gains faster than the short-term traders (the ones still figuring out the ropes). Spoiler alert: Long-term holders are just casually realizing some profits while short-term holders are stuck in the red zone like they bought a ticket to the wrong movie.
What Does This All Mean?
Basically, it looks like Bitcoin’s caught in a bearish pickle. Although the experts from XWIN Research suggest that as long as the long-term holders don’t panic and the short-term sellers aren’t flooding the market, there might be a glimmer of hope. But hold your horses—they warn that any potential upside will also face the handbrake of market reality.
The Rescue Mission for Bitcoin
To save Bitcoin from its downward spiral, the smart folks believe that consistent growth from Bitcoin ETF inflows and a drop in long-term holder distribution are crucial. Until these two factors come to the rescue, Bitcoin is likely to remain on a dull ride—maybe even drop further down the rollercoaster. As of now, Bitcoin’s hovering just under $87,623, sporting a slight loss of 0.5% since last week, and a tepid 0.6% rise in the last 24 hours according to CoinMarketCap. Here’s hoping it finds its spark back soon!