Crypto momentum is slowing amid no new pro-crypto policy from Trump, sparking concerns of a market correction. Lack of updates could lead to a 10%-20% decline, pushing investors to buy the dip in altcoins. There’s hope for future policy changes, but the absence of progress raises fears in the market.
The crypto market is facing potential turbulence as momentum has waned without pro-crypto policies from President Trump. Reports from Standard Chartered suggest a looming 10%-20% correction may occur due to this lack of updates. Investors are urged to consider buying the dip and explore altcoins poised to benefit from changes like new ETFs and regulations.
As Trump took office, bitcoin leaped to an impressive high of $109,000, fueled by hopes of swift, supportive policies. Yet, since January 20, the excitement has dwindled, leading to another 2% drop for bitcoin, trading around $104,172. Disappointment over stagnant policy developments is heavily weighing on market sentiment.
Geoff Kendrick from Standard Chartered warns, “Hope is not a strategy. It can last days, not weeks.” Without policy breakthroughs, he predicts a significant decline in digital asset values if optimism fades. Initial hopes for a strategic bitcoin reserve have also diminished, with odds dropping from 48% to 31% on Polymarket following Trump’s swearing-in.
Compounding concerns, the launch of the $TRUMP meme coin has raised alarms among some crypto enthusiasts, who fear it undermines the industry’s stability due to its speculative nature. Kendrick believes that while the administration might eventually honor its crypto commitments, prolonged delays could prolong price corrections, potentially lasting weeks or even months.
Currently, bitcoin’s trajectory appears risky, with fears of it dropping below the crucial $90,000 mark, although it is still trading 14% higher. His outlook stresses that any decline should be viewed as a buying opportunity, suggesting bitcoin could reach $200,000 by year-end.
Standard Chartered forecasts will shift dramatically by 2026, with the total crypto market cap possibly quadrupling while bitcoin’s market share decreases from 60% to 40%. Such trends might make 2025 a promising year for altcoins, particularly those set to benefit from new ETF approvals or regulatory shifts.
On a positive note, some crypto insiders believe recent actions by the Securities and Exchange Commission, such as establishing a crypto task force led by Hester Peirce, may lead to regulatory revisions and more fund approvals. Matt Mena of 21Shares notes this could pave the way for a variety of crypto ETF approvals.
Market strategist Joel Kruger observes that bitcoin’s performance indicates strong consolidation after hitting record highs, suggesting it may be gearing up for further advancements towards $130,000.
The crypto market is currently poised for volatility, influenced by the absence of pro-crypto policy announcements under President Trump. This uncertainty could lead to a potential market correction of up to 20%. However, investors are encouraged to consider this an opportunity to buy altcoins set to thrive under emerging regulations and ETF approvals, while keeping a watchful eye on bitcoin’s price movements.
Original Source: markets.businessinsider.com
