A prominent crypto strategist is raising some eyebrows with an optimistic prediction about the digital asset market, hinting that there’s potential for a significant rally, even though Bitcoin (BTC) is currently hovering below the $100,000 mark.
Known by the moniker The Flow Horse, this analyst has taken to the social media platform X to share insights with his 251,400 followers. He believes that the window for Bitcoin and altcoins to make substantial gains is wide open right now. The timeframe he emphasizes stretches from now until the second week of January—a crucial period for potential price increases.
Why the optimism? The analyst suggests that traders are feeling hopeful about the upcoming Donald Trump administration, believing it could have a positive impact on the crypto industry. Trump has hinted at ending the US government’s anti-crypto stance and proposed the idea of a Bitcoin treasury to stabilize the country’s finances.
However, there’s a catch. The Flow Horse warns that this optimistic outlook is bound to meet reality shortly before Trump’s inauguration day on January 20, 2025. The analyst cautions that many traders might be in for an unpleasant surprise following the transition of power.
“The market seems to have priced in a scenario that’s almost too good to be true—one where the US creates a Bitcoin reserve and a beneficial bill from Senator Lummis sails through Congress without issue,” he notes. “But as the excitement fades, the reality of Trump’s political challenges will likely emerge, making for a rocky adjustment.”
He highlights that he anticipates a local peak in crypto prices when Trump officially begins his second term, emphasizing that he suspects many are too caught up in the hype. “There’s a widespread belief that just because it’s Trump, everything must rise. But I see the potential for a top forming soon, perhaps in just a few weeks to a quarter.”
Moreover, looking beyond the immediate horizon, The Flow Horse reflects on the macroeconomic environment. Compared to the 2020 cycle—when the Federal Reserve dropped interest rates near zero due to the Covid-19 pandemic—he points out that capital is still more expensive now. “If you think we’re going to see even more explosive growth this cycle, then make sure you have a solid argument for how that’s possible without the benefit of the thriving credit markets that fueled the last surge.”
At the moment, Bitcoin is trading at around $94,455.
As the market gears up for what could be a pivotal moment, it’s important for traders and investors to stay informed, evaluate possibilities, and make informed decisions.
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Disclaimer: The views expressed are not investment advice. Always perform your research before making high-risk investments.
