Bitcoin remains front and center of all financial discussions following Trump’s inauguration speech on Monday.
Trump focused primarily on national issues such as immigration, economic policies, and energy production in his inaugural address.
Despite his recent support for Bitcoin, his rhetoric has been somewhat muted regarding cryptocurrencies.
This sent Bitcoin’s price falling from a high of $109,000 this morning to around $103,000 at the time of writing — and the coming weeks could see an even bigger decline, according to Markus Thelen of 10x Research.
What is more important for Bitcoin than Trump 2.0?
Trump’s return to the White House has been viewed as a material tailwind for Bitcoin as the president-elect has committed to making America the cryptocurrency capital of the world.
However, Markus Thelen is not entirely convinced that Trump’s inauguration earlier today was the most important thing for Bitcoin.
This could spur a rapid near-term rally in BTC – but these gains may be rather short-lived as the focus eventually turns to broader headwinds.
“Very soon, the market will once again focus on stronger employment data and a more hawkish Fed which is typically a headwind for Bitcoin,” he argued last week on CNBC.Street signs asia“.
This is why Bitcoin’s rise has already peaked
Markus Thelen attributes the cryptocurrency market’s rise in recent months to the significant interest rate cut by the Federal Reserve in September and to a lesser extent to general optimism related to pro-crypto policies under the Trump presidency.
But the central bank has since shifted to a more hawkish approach again as signs of weakness in the US labor market ease in the last two months of 2024.
Theilen no longer expects the Fed to cut interest rates further anytime soon, which is why he is convinced that the BTC rally has peaked at the moment and the crypto asset is unlikely to reach record levels in the coming months.
In other words, the 10X Research analyst sees Trump 2.0 optimism as tied to the Bitcoin price already at current levels.
What else could contribute to a potential decline in BTC?
Thielen is not alone in anticipating at least some weakness in Bitcoin in the future.
Founder and CEO of KKM Financial, Jeff Kilburg, is in the same league as well.
Investors have been buying into rumors that the incoming US government will take a strong positive stance on Bitcoin immediately on January 20.y.
But they are likely to sell the news now that Trump did not mention cryptocurrencies in his inauguration speech.
“If the U.S. government doesn’t buy Bitcoin in the first 100 days, we will see a decline in Bitcoin,” he told CNBC in an interview today.
Note that the price of Bitcoin is currently up 50% versus its price on Election Day (November 6).y).
The analyst says that post-Trump inauguration is not the main factor for Bitcoin’s future
