Crypto analysts expect the January 20 inauguration event to be primarily celebratory and pricing rather than market-moving.
Donald Trump’s inauguration ceremony has sparked lively debate across the cryptocurrency community, with market experts weighing in on whether the inauguration event will trigger price movements for major digital assets. Ahead of the surprise launch of the Solana-based official TRUM meme coin, industry experts took a conservative stance.
Well-established digital assets such as Solana, Bitcoin, and XRP have seen impressive gains following Republicans’ victory over Democrats. Experts attribute this surge because the cryptocurrency market has already priced the inauguration.
Minimize movement due to oath taking ceremony
Market Chief Executive Officer of YouHodler Ruslan Lienkha ruled out any dramatic price movements on January 20. The executive added that Monday’s event appeared to be priced in because it was primarily a ceremonial event rather than one that moved the market.
Other observers point to the possibility of major tokens pulling off a sell-off as Bitcoin rises strongly toward new peaks in the run-up to Trump’s inauguration. Intergovernmental blockchain expert Anndy Lian said the market has already priced in positive CPI data. The cryptocurrency creator ruled out Trump’s inauguration and introduced an immediate, game-changing policy. Some are likely to move lower as short-term traders take profits.
The conservative views are consistent with the stark warnings issued by Arthur Hayes, former head of BitMex. The cryptocurrency exchange co-founder warned that BTC could experience a vicious sell-off after President Trump returns to the Oval Office.
While not as pessimistic as Bitmex Hayes, Swarm executive Philipp Pieper pointed out that the inauguration brings little new information to the market. He added that price movements from Monday’s event will often create noise.
Analysts agree that that could change if President Trump starts working with traders who are optimistic he will make an earlier announcement. eToro market executive Simon Peters admitted to taking a close interest in monitoring the Trump administration’s implementation.
The key to rising prices is political and legal developments.
Peters added that President Trump’s recent announcement condemned the interest rate hike. This suggests that the next president may push to lower interest rates. Easing financial conditions will provide the tailwind needed to boost cryptocurrency prices.
Analysts have pointed out that the delivery of promised cryptocurrency-related executive orders will spark an upward trajectory for digital assets this year.
Pieper said he expects cryptocurrency prices to rise across the board as regulations become more clear and the market takes advantage of any substantive updates the Trump administration will provide.
Pieper expects a combination of regulatory and legislative developments to strengthen macroeconomic indicators, particularly U.S. inflation. He added that inflation and interest rate sensitivity are important factors affecting market liquidity and money supply. As more liquidity remains, asset prices rise.
Are Trump’s policies a zero-sum game?
A cryptocurrency-friendly stance and the promise of cryptocurrency-friendly macroeconomics provide opportunities for price appreciation, but some policies may indirectly hinder the industry.
Youhodler’s Ruslan Lien indicates that deepening trade wars and new tariffs could keep inflation rising. This could put downward pressure on the entire financial ecosystem.
The possibility of such an unfavorable outcome is reason to lower premature expectations of major moves in Monday’s events. The new government must deliver on its promises to ensure the market meets reality.
Monday’s events could leave several micro-tokens vulnerable to volatility, especially politically-themed meme coins. Lienkha pointed out that MAGA and DOGE tokens may soar because they are influenced by emotional trading rather than practical factors.
Pieper warns that small tokens can easily plummet when liquidity levels are low. He explained that this challenge can affect tokens based on emotions. They are extremely volatile and have difficulty supporting their underlying values.
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