Key Points
- Bitcoin’s price struggles might be reversed by the new U.S. administration’s potential inclusion of Bitcoin in the country’s strategic reserve.
- Macroeconomic conditions, U.S. interest rate cuts, and broader fiscal policies could play a major role in Bitcoin’s future.
Bitcoin has been facing a downturn, recently dropping to $95,000. The investment community is now in search of the next significant event that could propel the cryptocurrency market.
Bitget CEO Shares Insights
Bitget CEO Gracy Chen, during a discussion with Bloomberg, provided her thoughts on possible triggers to counteract Bitcoin’s declining price trend. One major factor, according to Chen, could be the new U.S. administration headed by President Donald Trump. She mentioned that talks were in progress, but no solid decision has been made on the possibility of incorporating Bitcoin into the nation’s strategic reserve.
Chen stated that the administration is still deciding if and how Bitcoin can be included in the strategic reserve. Despite the ongoing discussions, Chen warned that expectations should be kept in check. She did not anticipate Bitcoin’s inclusion in the strategic reserve to materialize in the first half of 2025, or even throughout the year.
Macroeconomic Factors and Bitcoin
When questioned about past triggers, such as the 2024 Bitcoin halving as a significant driver, Chen clarified that it was not intended to be a trigger as it was already anticipated. In her view, unforeseen events are the real catalysts to boost Bitcoin’s price.
Interestingly, Chen believes that macroeconomic conditions, rather than excessive Bitcoin purchases from entities like Strategy, will have the greatest impact on Bitcoin’s future. She highlighted the potential for U.S. interest rate cuts and wider fiscal policies.
Influence of Musk and Trump
Chen also expressed concerns about the over-reliance on political promises to stimulate Bitcoin’s growth. She pointed out how individuals outside of traditional politics, such as Elon Musk, have significantly influenced the crypto markets.
Chen used Dogecoin as an example, stating that its price has been largely affected by Elon Musk, who is more of a businessman than a politician. She also believes that Trump shares some of these characteristics, stating that he is more of a business leader than a politician. In her opinion, entrepreneurs like Musk and Trump could drive more change than traditional politicians.
