History Repeats Itself with the American Elections, Bitcoin Ready to Soar!

Pantera Capital, an investment firm specializing in cryptos, has published its analysis “The Year Ahead in Crypto” from its offices.

Pantera Capital, a crypto-focused investment firm, has published its analysis “The Year Ahead in Crypto” from its offices. The report draws a parallel between two major events: the launch of the Spot Bitcoin ETFs in January 2024 and the upcoming inauguration of Donald Trump. In both cases, the asset manager anticipates a persistent bullish dynamic, running counter to the tradition of traditional financial markets.

Recent history seems to support their view. Since the approval of the Spot Bitcoin ETFs, BTC has recorded an increase of over 100% and the funds have attracted over $40 billion in investments. This performance demonstrates that the crypto market can maintain its momentum long after the official confirmation of a positive news.

The pro-crypto stance taken by Donald Trump reinforces this optimistic outlook. His strategic appointments, notably that of Paul Atkins as head of the SEC and David Sacks as crypto advisor at the White House, reflect a willingness to support the development of the blockchain industry.

A Macroeconomic Context to Watch

Although Bitcoin recently took a pause after surpassing $100,000 in December, Pantera attributes this slowdown more to monetary policy than to political uncertainties. The prospect of a slower-than-expected decline in rates by the Federal Reserve and the strengthening of the dollar have temporarily weighed on risky assets.

Several industry experts, including Jack Mallers, CEO of Strike, anticipate strong measures as soon as the new president takes office. The possible signing of a decree recognizing Bitcoin as a reserve asset is among the scenarios discussed, which could trigger a new wave of institutional adoption.

Scott Mason, political advisor at Holland & Knight, emphasizes that Trump’s arrival enhances the legitimacy of Bitcoin among traditional investors. This increased credibility, combined with a potentially more favorable regulatory framework, could catalyze the next phase of the bull market.

Analysts at Pantera Capital conclude that the American election, far from being a mere speculative event, represents a true structural turning point for the crypto market. The convergence between institutional adoption and political support should, according to them, fuel the rise of Bitcoin.

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Passionné par le Bitcoin, j'aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermely que Bitcoin est l'outil qui peut rendre cela possible.