- Trump returns to office on January 20th
- American economy still in recovery mode post-pandemic
- Investors foresee a new bull run once Trump takes office
Donald J. Trump will be officially returning to office on January 20th. After losing to Joe Biden in the 2020 election, the Republican made a triumphant return beating Kamala Harris during last year’s presidential election.
The landscape has certainly changed since the last time Trump was President. Despite the Fed being confident in its tight handle on inflation, the American economy is still in ‘recovery mode’ after the 2020-2021 pandemic. Since then the Federal Reserve raised interest rates to its highest number in over a decade, while the job market struggled with generating as many jobs as the pre-pandemic times.
Trump will also find a completely different cryptocurrency sector once he takes office next week. Since 2020, cryptocurrencies have evolved from being considered a volatile investment to consolidating Bitcoin as one of the most valuable strategic reserve assets in the world.
Despite this progress, the market was still suffering from strict regulatory practices seen in Government branches such as the SEC. In truth, regulatory bodies have weighed in on more strict regulations since the FTX collapse in 2022.
Is another Trump Bull Run Happening?
The majority of crypto voters backed Trump to win because they saw in the then-candidate the most “pro-crypto” of the two candidates. In return, the Republican’s victory ignited one of the strongest bull cycles ever seen in the market, responsible for making assets like XRP recover and leading Bitcoin to its all-time highest price.
Now with only seven days until Donald Trump takes the Presidential oath in the West Front of the U.S. Capitol in Washington — investors estimate whether another bull run is possible with Donald Trump as the President.
Over the past couple of days, Bitcoin and the whole cryptocurrency market have seen a significant retraction. BTC is currently trading at $91,983, down from the $102,221 it traded only seven days ago.
Technical indicators like the Relative Strength Index (RSI) show that Bitcoin hit as low as 30.35 points on January 30, indicating strong “oversold” levels. If the market continues to build up momentum ahead of January 20, a new run above the $100k margin for the world’s largest crypto is most likely possible, given the optimism regarding Trump as the President.
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