Will Trump’s policies cause the Bitcoin price to plummet? Check out the Prediction!

Updated

February 28, 2025

Gambar Will Trump’s policies cause the Bitcoin price to plummet? Check out the Prediction!

Jakarta, Pintu News – Arthur Hayes, a veteran in the crypto world, predicts that US politics will determine the short-term price of Bitcoin . The BitMEX founder suggests waiting and watching for further developments on social media platform X. According to him, the budget decisions made by President Trump will greatly affect the price of Bitcoin (BTC).

Political Influence on Bitcoin

Now we chill out, retrace, and wait. If Trump can't pass his budget which spends more and hikes debt ceiling, resume capitulation to levels pre the election day victory $75k to $70k. This is test of how strong Trump's hold is on the Republican party. pic.twitter.com/sFUq12OSIY
— Arthur Hayes (@CryptoHayes) February 25, 2025

According to Arthur Hayes, the budget policy proposed by President Trump could trigger a drop in Bitcoin (BTC) price if it is not approved. If the budget that increases spending and the debt limit cannot be passed, Hayes predicts that Bitcoin (BTC) could return to its pre-election day price, which is between $75,000 to $70,000. This will be a test of how strong Trump’s influence is on the Republican Party.

The possibility of selling by hedge funds that have purchased BlackRock’s iShares Bitcoin (BTC) ETF (IBIT) is also a factor to watch. If the price of Bitcoin (BTC) continues to decline, a massive sell-off of the ETF is expected. This is because many hedge funds use the strategy of buying ETFs and selling futures for yield.

Also Read: Cardano (ADA) Price Prediction by Alex Becker: Upside Potential or Excessive Speculation?

Market Dynamics and Bitcoin ETFs

Arthur Hayes highlights that many hedge funds holding the iShares Bitcoin ETF (IBIT) may sell it soon if the price of Bitcoin (BTC) continues to decline. The strategy used by these hedge funds is to buy the ETF and sell futures on the CME to profit from the price difference. If this spread decreases as the price of Bitcoin (BTC) declines, then they will tend to sell the ETF and buy back the futures.

This could trigger more selling pressure in the Bitcoin (BTC) market, which in turn could lower the price further. Hayes estimates that the price of Bitcoin (BTC) could reach $70,000 if this scenario occurs. This will be a critical moment to see how stable the Bitcoin (BTC) market is in the face of fluctuations triggered by external factors.

Bitcoin Price Outlook and Advice for Investors

#Bitcoin goblin town incoming:
Lots of $IBIT holders are hedge funds that went long ETF short CME future to earn a yield greater than where they fund, short term US treasuries.

If that basis drops as $BTC falls, then these funds will sell $IBIT and buy back CME futures.

These… pic.twitter.com/3PskTxrBPR
— Arthur Hayes (@CryptoHayes) February 24, 2025

With the uncertain market conditions, Hayes advises investors to exercise caution. According to him, it is important to monitor US political developments and their impact on the crypto market. Investors need to consider the risks involved and not rush into making investment decisions.

Hayes also emphasizes the importance of understanding the strategies used by hedge funds and how they can affect market dynamics. With a good understanding, investors can be better prepared for potential market volatility and make more informed decisions.

Conclusion

With all the uncertainty, the Bitcoin (BTC) market is currently under the heavy influence of US politics. The upcoming budget and debt limit decisions by the Trump administration will largely determine the direction of the Bitcoin (BTC) price in the near future. Investors and market participants should remain vigilant and prepared for any eventuality.

Also Read: B itcoin (BTC) Trend Not Over? CryptoQuant CEO Analyzes!

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.