Crypto trader warns of Bitcoin drop before Trump inauguration
Bearish Bitcoin outlook drives debate on future trends
Renowned trader Ansem shared his bearish forecast for Bitcoin (BTC) on his X account, drawing significant attention from the crypto community.
Key takeaways
- Trader Ansem predicted a challenging phase for Bitcoin with a potential drop to $92,000 and advised monitoring the market reaction ahead of Trump's inauguration.
- The forecast sparked widespread debate, especially amid the decline in hash rate and a bearish divergence, with the price hovering around $94,000.
- The release of new U.S. employment data added to market volatility, fueling speculation about the Federal Reserve's next actions.
Ansem’s bearish forecast
The crypto trader warned that Bitcoin could enter a difficult phase with a significant drop, though not as low as $91,000–$92,000. Ansem recommended closely watching the market well before Trump’s inauguration to observe whether investors overreact to the Federal Reserve’s hawkish stance and potential sell-offs related to the Department of Justice.
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Reaction to the forecast and Bitcoin dynamics
Ansem's statement triggered widespread discussion online. In a follow-up post, responding to users, he added: "Uncertainty and fear might ease after Trump’s inauguration, depending on his comments." At the time of reporting, Bitcoin's price was around $94,000, reflecting market concerns. The cryptocurrency's hash rate has significantly decreased, raising fears of a potential bearish breakdown as the market faces a notable bearish divergence.
Bitcoin price chart. Source: CoinGecko
Macroeconomic situation
Adding to the current volatility, the U.S. Bureau of Labor Statistics released its latest employment report, showing that 256,000 jobs were added last month. Additionally, the unemployment rate fell to 4.1%, further highlighting the strength of the U.S. labor market. These figures have renewed speculation about the Federal Reserve's next move on interest rates.
Expectations and possible scenarios
Analysts note that Bitcoin’s performance is closely linked to macroeconomic events and regulatory expectations. Ansem’s comments reflect investor sentiment, with many fearing sudden regulatory actions and potential liquidations of government-held crypto reserves.
Despite the current downtrend, some traders see the approaching political transition as a potential turning point. If concerns over stricter monetary policy and legal interventions subside, Bitcoin could regain momentum. However, the crypto market's future remains uncertain, given external factors and economic signals.
Conclusion
Notably, millionaire Jeremy Da Vinci predicts that Bitcoin’s price could rise to $350,000. He explained that, historically, during bull markets, BTC's price has exceeded its production cost by more than five times. He emphasized that miners currently need around $70,000 to produce one Bitcoin.
