With Trump now in the driver’s seat and the markets on fire, it looks like we’re definitely experiencing a bump on the road! But will it be a good bump?
U.S. elections, Bitcoin nears ATH, and more
A week ago, with the presidential election was just around the corner, investors are betting big on a Trump victory—not just in America but across the globe. Now, let’s talk Bitcoin.
Last week, there were plenty of doomsayers predicted that if Trump does win, Bitcoin might take a nosedive—a scenario some are calling a Trump dump.
Peter Schiff, who I’ve affectionately dubbed a lamprey for his relentless negativity towards Bitcoin, is at it again.
He argues that since Bitcoin hasn’t been riding the same wave as other assets linked to Trump’s victory, it’s a sign that Bitcoin won’t benefit from his win either. Well, we got an ATH almost immediatelly.
Then there’s Thegiver on X, who laid out a theory suggesting that recent inflows into Bitcoin are more about hedging against the election than long-term investments. His point?
Once the election dust settles, those funds could vanish faster than your favorite snack at a party, dragging prices down with them.
Plus, he argues that any significant cash injections needed to boost prices aren’t on the horizon, especially not in this last quarter of the year.
Inflation is coming again?
And let’s not forget about tariffs! Many said if Trump wins and follows through on his tough talk about tariffs, we could see inflation on goods skyrocket until manufacturing comes back to the U.S.
This might force the Federal Reserve to hit pause or even reverse its monetary easing policies, definitely not good news for riskier assets like Bitcoin and other cryptocurrencies.
But here’s the hot take, many think the chances of a Trump victor* leading to a longer or bigger dump are pretty slim.
The markets seem to agree. Bitcoin made headlines this week with a new all-time high, after hitting $73,500 on Tuesday.
This was its first time crossing that $73,000 mark in over seven months, showing some serious market momentum and investor enthusiasm, especially with institutional money flowing in.
Speaking of institutions, Michael Saylor’s MicroStrategy is making some noise with $42 billion plan to ramp up its Bitcoin purchases.
They’re positioning themselves as heavyweights in the digital asset game. Of course, this news sent Crypto Twitter into a frenzy, though not everyone is convinced.
Bitcoin ATH, but when moon for Ethereum?
While Bitcoin was busy to break its all-time high, Ethereum was doing what it does best this year, underperforming.
Amidst Ethereum’s struggles, Jon Charbonneau shared an entertaining thread on X arguing why Bitcoin’s Layer 2 ecosystem is outshining Ethereum’s, definitely a sore point for Ethereum holders!
Then came Ryan Adams from Bankless, and he suggested that Ethereum’s doom-and-gloom narrative might be overhyped.
„We’ve really moved to bearish [ETH] no matter what szn… not only is Ethereum losing to Solana in every way now; it’s probably going to lose all its L2s to Bitcoin.”
