What Bitcoin Election Patterns Could Signal For Its Price Ahead Of January 20 Inauguration

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Amidst the rocky journey of Bitcoin (BTC), characterized by heightened volatility and a substantial drop in cryptocurrency values, market expert Lark Davis has highlighted a possible positive development.

On social media platform X (previously known as Twitter), Davis recently made a comparison: he likened the recent fluctuations in Bitcoin’s value to what was seen during the previous presidential election, implying that this could boost trust in the top digital currency again.

Bitcoin Mirrors 2021 Election Cycle

Davis pointed out a possible similarity between Bitcoin’s current price movement and its behavior during the 2021 presidential election and inauguration.

As a researcher examining the dynamics of Bitcoin, I recently encountered an intriguing chart depicting three distinctive stages that Bitcoin traversed in the past, which could potentially resurface as we approach the forthcoming presidential inauguration of Donald Trump on January 20th. This historical pattern may offer valuable insights into future market trends.

Initially, during the period from November to December 2024, Bitcoin witnessed an impressive surge reaching unprecedented heights and peaked at a price of $108,000 on December 17.

After experiencing an early increase, Bitcoin moved into a stage Davis calls the “pre-inauguration selloff.” Typically, this phase is associated with market adjustments due to investor concerns over political changes and their potential impact.

As a researcher, I’m keenly observing Bitcoin’s trajectory during this period, keeping a close eye on its fluctuating prices as the inauguration day draws near, eager to understand how these events might impact its value.

Davis expects a possible “price rise after the inauguration,” similar to the increase that took Bitcoin to its peak of $69,000 in 2021. As the inauguration is just around the corner, the market is closely watching if this historical trend will reoccur in 2025.

Market Anticipates Trump’s Inauguration

The optimism about Bitcoin’s future is strengthened by Trump’s pledges to redefine the regulatory landscape concerning cryptocurrencies, suggesting a more favorable outlook for digital currencies.

Instead of Biden’s administration adopting a more conservative strategy, Trump has expressed an interest in stimulating development in the digital assets sector. This interest includes proposals for creating a Bitcoin reserve as a means to tackle the nation’s enormous debt, which currently stands at over $36 trillion.

As an analyst, I find myself echoing Lark Davis’ sentiments about the potential similarities between past and present market situations, rather than outright repetitions. The incoming administration’s possible backing of Bitcoin could act as a significant catalyst, potentially driving Bitcoin towards unprecedented price peaks and ushering in a period of extensive price exploration.

Besides Davis’s observations, Dr. Profit, another crypto expert, has also shared his thoughts on Bitcoin’s latest trends. He remains hopeful about the digital currency’s course, suggesting that it is following the path he had earlier predicted.

Maintaining a consistent daily price above $95,900 is crucial for Bitcoin’s growth, and a surge beyond $97,500 would strengthen its trajectory towards hitting the significant $100,000 milestone.

At the time of writing, BTC trades at $97,000, recording gains of 3% in the 24-hour time frame. 

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2025-01-15 15:40