ith 2025 looming, there is much speculation and apprehension in the crypto space concerning how political shifts in the United States may play a role as well. The imminent arrival of Donald Trump as the next president is being received with a mixture of optimism and caution among investors.
Market Concerns Ahead of Trump's Inauguration
In a December 18 blog post, BitMEX co-founder Arthur Hayes warned investors against expecting any changes in crypto policy right after the election results. He stated his investment fund Maelstrom would be closing some of its positions at the beginning of 2025. He anticipates having better buying opportunities for lower prices later in the year.
Hayes noted there is a wide chasm between optimism in the markets and the political inertia of slow-moving change, implying the U.S. or any other nation creating surplus Bitcoin reserves is far from approaching an expedited solution.
He thinks once reality sets in (especially since Trump probably only has a year to make major policy changes) the market could see a sharp sell-off and then be followed by increased volatility. This is consistent with the current rate of trading as Bitcoin is trading up to $102,399.508, down 2.67%.
Ethereum's Potential Surge
Popular crypto analyst Pentoshi has claimed that Ethereum (ETH) has already taken the lead and surged past its previous ATH. Naturally, he is now of the belief that this may beat the record to reach as high as more than $4,000 for one coin.
It has retraced around 4.77% and is trading for $3,681. Pentoshi thinks Ethereum can jump 20% higher on its path if the second-largest cryptocurrency outpaces Bitcoin in the short-term and therefore reverses what was otherwise its BTC-dominated trend for a long part of the year.
This is because Ethereum has hardly spent any time in the past above the region of $4,000, which means that by the time the $4,000 target is reached, there will be very little resistance for the second-biggest crypto asset by market capitalization. If Ethereum can hold at $4,000 as support, the next big resistance will come in at $4,800, which was its previous all-time high.
Market Volatility Might Be Present
The cross predictions for Ethereum and the whole crypto market paint a dicey outlook. The warning for a possible dip by Hayes adds to speculation that companies like MicroStrategy could temporarily halt Bitcoin buys, a factor that wouldn't go well with the markets. Moreover, Ethereum pro's gearing up for a political battle may be a sign that things are about to get more complicated financially, while some investors still keep hope for a short-term pump.
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