Donald Trump Inauguration Will Bring ‘Noise’ to 2025 Crypto Market: Analysts

Donald Trump Inauguration Will Bring ‘Noise’ to 2025 Crypto Market: Analysts

Monday’s inauguration of Donald Trump isn’t likely to bring any significant price moves for major cryptocurrencies, according to industry experts who spoke to Decrypt before Friday night’s surprise drop of an official Trump meme coin.

Well-established coins such as Bitcoin, Solana, and XRP have risen considerably since the Republican’s election victory on November 5, leading some experts to suggest that the market has already priced in the inauguration.

“I do not anticipate any significant movements on Monday,” YouHodler’s chief of markets Ruslan Lienkha, told Decrypt.

“The event appears to be already priced in, and the inauguration is mainly ceremonial rather than market-moving,” he added.

Some observers also highlight the possibility of a “sell-the-news” day for major tokens, with Bitcoin having already gained strongly in the runup to Trump’s swearing in.

“With [positive] CPI data already priced in and Trump’s inauguration unlikely to introduce any immediate, game-changing policies for crypto, Monday could see a pullback as short-term traders lock in gains,” suggests Anndy Lian, an intergovernmental blockchain advisor and cryptocurrency author.

This suggestion resonates with starker warnings given by figures such as BitMex co-founder Arthur Hayes, who predicted last month that Bitcoin may suffer a “vicious sell-off” when Trump takes office.

While not as pessimistic as Hayes, Swarm co-founder Philipp Pieper tells Decrypt that the inauguration itself doesn’t provide the market with any new information.

“It’s really important to underline here that any price movement on Monday is going to be mostly noise in the bigger picture,” he explained.

But this picture could change as soon as Trump and his administration gets to work, with traders waiting to see whether the current President-elect will live up to earlier pronouncements.

“I’m more closely focused on what he (and his administration) will implement over the next few months,” eToro market analyst Simon Peters told Decrypt.

Peters notes that Trump complained at a recent press conference that interest rates are “far too high,” suggesting that the incoming President may push to lower them.

“A loosening of financial conditions under his administration could provide a tailwind for crypto-asset prices,” Peters adds.

And assuming that recent reports of crypto-related executive orders are accurate, analysts are relatively confident that the general trajectory of the market this year will be upwards.

Pieper explained: “As the regulatory environment becomes clearer and the market grasps tangible updates for the first year of the Trump administration, we’re likely to see a general uplift in prices.”

Legislative and regulatory moves are also likely to combine with tentatively improving macroeconomic indicators, such as US inflation.

“Inflation and rate sensitivity matters because it ultimately has a major say in the outlook for money supply and market liquidity,” said Pieper. “The more liquidity in the market, the more it will raise asset prices.”

Yet while the arrival of both crypto-friendly macroeconomics and presidents should point towards generally rising prices, some analysts warn that some of Donald Trump’s other economic policies could indirectly bite the cryptocurrency market.

“Other policies, such as the potential intensification of trade wars and the imposition of new tariffs, could sustain elevated inflation levels and exert downward pressure on financial markets,” warns Youhodler’s Ruslan Lienkha.

This is perhaps why it would be premature to expect major moves on Monday, since the market will need the new administration to act before it can begin differentiating perceptions from reality.

On the other hand, Monday may expose smaller cap tokens and (politically themed) meme coins to a greater degree of volatility.

“For instance, tokens like MAGA or DOGE [Department of Government Efficiency] may stage a rally, influenced by emotional trading rather than substantive factors,” Lienkha suggested.

However, Phillipp Pieper cautions that they may just as easily crash, in view of their low liquidity.

“The issue with these kinds of token is they’re largely sentiment-driven which can be extremely volatile and difficult to underpin the inherent value,” he said.

 

Source: https://decrypt.co/301635/donald-trump-inauguration-2025-crypto-market

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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FTX to begin distributing $1.2B to creditors after Trump inauguration

FTX to begin distributing $1.2B to creditors after Trump inauguration

FTX is preparing to distribute more than $1.2 billion in repayments to the bankrupt former cryptocurrency exchange’s users.

FTX, once the world’s second-largest centralized cryptocurrency exchange (CEX), is set to begin repaying users who have been unable to access their funds for over two years.

Exchange users who are owed up to $50,000 worth of digital assets have until Jan. 20 to fulfill their repayment requirements.

FTX will likely start repaying claims of up to $50,000 after Jan. 20, according to FTX creditor Sunil, who is part of the largest group of more than 1,500 FTX creditors, the FTX Customer Ad-Hoc Committee.

“Jan 20th: FTX has given until 20th Jan to fulfill pre-distribution requirements for initial distribution. Repayments likely won’t start before then,” Sunil wrote in a Jan. 11 X post.

The Jan. 20 deadline coincides with US President-elect Donald Trump’s inauguration, which has sparked expectations of more crypto regulatory clarity and the possible acceptance of the Bitcoin Act. The act proposes creating a Bitcoin BTCtickers down$96,880 reserve for the US, the world’s largest economy.

Combined with new capital from the upcoming FTX repayments, Jan. 20 could catalyze the next leg up in the 2025 crypto market cycle, which could see Bitcoin surpass $200,000, according to some industry watchers.

Will FTX repayments lead to crypto market volatility?

Users claiming up to $50,000 are the first group of investors to receive repayments, according to FTX’s restructuring plan, which was approved in October 2024. The plan stated that 98% of FTX users could expect to be paid 119% of the declared value of their funds.

However, some creditors have criticized the repayment model, which reimburses claimants based on cryptocurrency prices at the time of bankruptcy. Bitcoin prices, for example, have increased by more than 370% since November 2022.

While some crypto investors expect heightened market volatility, the FTX repayments are crucial for rectifying past damages and repairing the industry’s reputation.

The repayments will lead to mixed investor reactions, depending on individual risk appetite, according to Anndy Lian, author and intergovernmental blockchain expert.

Lian told Cointelegraph that some of the repayments may flow back into other cryptocurrencies:

“Smaller investors, who’ve been hit hard by FTX’s collapse, might be more inclined to sell for financial security. Those with a bit more faith in the long-term prospects of crypto might stick it out, betting on future growth. It’s all about individual circumstances and risk appetite.”

“The MT. Gox scenario does set a precedent, where a lot of folks chose to hold onto their coins hoping for better days,” Lian added.

Most Mt. Gox creditors have opted to hold their BTC despite Bitcoin’s over 8,500% value appreciating in the 10 years since the Japanese exchange collapsed.

On July 30, Mt. Gox completed 41.5% of its Bitcoin distribution to creditors, who received a total of 59,000 Bitcoin.

Despite receiving nearly $4 billion worth of Bitcoin, the Mt. Gox creditors weren’t sellingaccording to a July 29 Glassnode report, which stated:

“Creditors opted to receive BTC, rather than fiat, which was new in Japanese bankruptcy law […] As such, it is relatively likely that only a subset of these distributed coins will be truly sold onto the market.”

The incoming $1.2 billion could be a “significant liquidity event for crypto,” according to Philipp Zentner, co-founder and CEO of LI.FI protocol. He told Cointelegraph:

“Overall it’s a macro-positive moment for the industry, particularly given the favorable current market conditions, also prices right now feel like a ‘Black Friday’ sale for crypto.”

Crypto firms BitGo and Kraken announced in December that they would assist in distributing recoveries to FTX users. Assuming all users file complete claims, the exchange could be expected to pay out roughly $16 billion.

 

Source: https://cointelegraph.com/news/ftx-distribute-1-2-b-trump-inauguration

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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