The first month of Donald Trump's presidency has been challenging for risk assets, including cryptocurrencies. However, experts suggest that such shifts could benefit the Bitcoin market in the long term.
Bitcoin's Volatility with New Leadership
Geoffrey Kendrick, head of digital assets at Standard Chartered, stated in a CNBC interview that despite current volatility, Bitcoin could reach $200,000 this year and rise to $500,000 by the end of Trump's second term. The main drivers include increasing institutional investments and potential for clearer regulations.
Institutional Support for Cryptocurrency
Kendrick mentioned that the involvement of major financial players, such as Standard Chartered and BlackRock, could mitigate risks for the cryptocurrency market. These institutions offer more secure storage solutions that will reduce the number of hacks and thefts.
Trade Policies and Their Impact on Bitcoin
Recent threats by Donald Trump to impose tariffs on Canadian and Mexican goods caused Bitcoin's price to dip to $80,000. This sharp reaction to political statements indicates a high correlation between Bitcoin and stock market conditions and liquidity.
Despite current resistance and volatility, Bitcoin remains a promising asset amid increasing institutional interest and political changes affecting the market.
