Crypto market's uptrend will slow down after Trump takes office

Analysts say that based on the performance of the cryptocurrency market after the inauguration of previous US presidents, the bullish momentum of the cryptocurrency market often stagnates when a new president takes office, so the cryptocurrency market may also experience a similar situation after Donald Trump officially takes office as the President of the United States on January 20, 2025. Typically, in the weeks following a US presidential election, the stock and Bitcoin markets tend to show a positive trend, as the new president (especially if they are a Republican) often introduces business-friendly policies that excite the market. However, data from Bloomberg and Macrobond Financial shows that this upward momentum gradually fades after the new president takes office, with a similar trend observed in the financial markets during previous presidential elections. Research data from TS Lombard indicates that the market rebound is often more pronounced when the new president is from the Republican party. Once the new president officially takes office, the market sentiment changes, and these rebounds quickly subside. Citigroup's stock strategist Scott Chronert suggests that if the S&P 500 index exceeds its year-end target of 6,100 points, representing a 5% increase from the election day, investors should consider whether the post-election euphoria is beginning to fade. As of December 2, the S&P 500 index stood at 6,047 points, up nearly 4.5% since November 5. Some analysts also believe that despite market concerns about the ongoing economic slowdown, the upward trend of Ethereum will continue, as the correlation between Bitcoin and the traditional stock market has been gradually weakening in recent months, reaching a new five-year low of 0.46. However, even with a reduced correlation, the Bitcoin market remains highly susceptible to the impact of investor sentiment. Additionally, the high correlation of 0.66 between Ethereum and the stock market suggests that a downturn in US stocks could significantly affect the price stability of Bitcoin and Ethereum. Disclaimer: The information provided in this section is for reference only and does not constitute any investment advice or official position of FameEX.