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Bitcoin, which fell sharply last night to below $90,000, recovered just as quickly and the price rose above $96,000.
Singapore-based crypto analytics firm QCP Capital claimed that Trump is behind the rise in Bitcoin.
Analyzing the reasons for the sudden decline and rise in Bitcoin, QCP analysts said that the markets gave up on interest rate cuts and started to adapt to the continuation of a long-term high interest rate environment, and that the decline was negatively affected by interest rate expectations.
At this point, analysts stated that the markets are no longer pricing in an interest rate cut until October and drew attention to the importance of the US CPI and PPI figures to be announced today and tomorrow.
“There may be upward surprises in these data coming from the US. Markets have started to adjust to the fact that high interest rates will continue for a longer period. Some investors are even considering the possibility of a new interest rate hike.”
He said there was a catalyst for the rally despite the potential negative data picture in the short term.
Analysts stated that this catalyst was Donald Trump and that Trump’s positive effects on the crypto sector are expected to continue.
“Still, there is hope for a catalyst. Trump could reportedly sign executive orders addressing banking curtailment and repealing a controversial crypto accounting policy, which could provide a boost to the market. Trump making these moves would likely reflect positively on crypto markets.”
*This is not investment advice.
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