Bitcoin Promises May Falter: Trump Warned by Economist
The Economic Implications of Trump's Bitcoin Promises
An economist has cautioned the crypto community regarding President-elect Donald Trump's commitments to Bitcoin and the broader cryptocurrency market. This warning comes amidst a backdrop of optimism, where Trump was previously viewed as a crypto-friendly candidate after pledging to include Bitcoin (BTC) in a strategic U.S. reserve.
Trump's Campaign Promises and Market Reactions
- Promises to halt government Bitcoin sales.
- Removal of SEC Chair Gary Gensler.
- Opposition to developing a central bank digital currency (CBDC).
Despite these promises, economist Peter Schiff warns that such commitments may remain unfulfilled. Schiff's comments followed a significant rally in Bitcoin's price, driven by speculations tied to Trump's election. However, he indicates that this optimism might be misplaced.
Market Reactions and Speculative Forces
During the campaign, Bitcoin reached new heights above $75,000, marking a surge that resulted in the creation of over 11,000 millionaires. However, Schiff emphasizes a cautious outlook, indicating that Bitcoin's price is still lagging behind relative to gold. He expressed concerns about a potential downturn he anticipates, particularly if Trump fails to deliver on his promises.
- Historically, Bitcoin struggles to maintain momentum after major political events.
- Previous elections saw Bitcoin initially dip before surging post-election.
- Market sentiment remains mixed as traders exhibit fear of missing out (FOMO).
As the market watches for Bitcoin's ability to sustain its price, it remains crucial to consider these external economic factors and speculative forces that could significantly impact its trajectory.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.