However, the primary cryptocurrency is struggling with increased fluctuations and a correction to the downside while analysts view the price patterns as the January 20 inauguration of President-elect Donald Trump. Lark Davis, the market expert, believes the situation might be the same as what was with Bitcoin during the previous U.S. presidential cycle.
Davis recently took to X, which was formerly known as Twitter, to compare the current Bitcoin chart with the volatile 2021 election season. He outlined three phases observed then: The pattern that can be distinguishable is an increase in the days of the rally, a decline in the day of Pre inauguration and again is increase with in Post inauguration.
Bitcoin Peaks At $108,000
Bitcoin reached $108 000 by December 17 in late 2024 and then begun a correction phase which Davis refers to as “pre-inauguration dump”. This phase is closely associated with political changes, and investors are extremely careful. Bitcoin is currently in this second phase of development, which cause many people to wonder if there will be a post-inauguration rally as well.
From past statistics, this is not entirely off the mark. The bitcoin went to its peak of $69,000 in 2021, after the inauguration of a new President. According to Davis, an equivalent post-inauguration pump might take Bitcoin higher in 2025.
The market auspius are high regarding Trump’s support for cryptocurrencies. While the Biden administration is conservative, Trump is going to change cryptocurrency legislation, which might lead to the development of this sector. More so, his plan to form a Bitcoin stockpile as a measure for the $36 trillion national debt has also contributed to optimism.
But ever the pessimist, Davis warned that while history doesn’t necessarily rhyme it does have a steady beat. If you follow the pattern, BTC could could be shifting to the price discovery phase given appropriately clear regulatory environment.
Other crypto analyst, Doctor Profit also joined Davis in positivity with taking certain price levels for BTC into consideration. Profit sees an uphill close above $95,900 a significant level significant, with the bullish breakout past $97,500 likely to catapult the digital currency towards the magical $100k.
As it stands now, with only days until inauguration, the crypto market is watching keenly to see if Bitcoin will follow its typical election pattern and more importantly if it will get the policy direction it wants.
