A Week After Trump’s Inauguration: What Remains of the Crypto Hype?
In the meantime, it’s been a week since Donald Trump was sworn in as the 45th President of the United States. During his first week in office, Trump caused a stir both nationally and globally like no president before him. This has also had a significant impact on Bitcoin and Co., which have been under enormous pressure for some days. Within the last 48 hours alone, the Bitcoin rate has slumped by over 10 percent. Now the question is: What will remain of the crypto boom that presumably broke out due to Trump? To find answers to this question, we have picked the brains of some industry experts.
Bitcoin: Challenges and Risks for 2017
The crypto expert Nelson Pradella took a close look at the recent developments for Block Builders. He sees current challenges primarily in the still-closed situation of the Bitcoin network: High volatility and extreme fluctuations in the market place high demands on Bitcoin, making it difficult for many traders to invest in Bitcoin. Despite recent price drops, Pradella sees positive developments for Bitcoin above all in the long term: “I am convinced that Bitcoin will continue its positive trend in the coming months and then reach new highs again. The bottom line is that Bitcoin’s position has continuously improved over recent years.”
Trump Presidency: Positive or Negative for the Crypto Market?
From Gerry Deke, a financial market analyst, came a similar assessment: “Trump will most likely pursue protectionist policies, strengthening the dollar, and possibly causing emerging markets to suffer,” says Deke. “This could especially favor Bitcoin due to its independence from currencies and governments. At the same time, government control could increase, which may trigger more uncertainty in the crypto space. Whether the past hype now turns into a boom phase remains questionable, but the current developments are at least not necessarily negative for Bitcoin.”
The Situation with Ethereum is Similar
Bitcoin is not the only currency undergoing uncertain times. Ethereum also recently lost value, trading at around $960 (around 860 euros) on Monday compared to $1,080 (around 970 euros) at the end of last week. Wolfgang Goczanski, the CEO of an energy company and crypto investor, believes, however, that the current developments should not cause a negative mood: “We will see ups and downs again and again. Fluctuations are part of the market and not fundamentally bad.” Goczanski believes the recent developments of Ethereum have indeed shown some positive signs and therefore recommends calm in the market.
Conclusion
No one can say with certainty what will happen to cryptocurrencies in the near future, and especially Bitcoin still seems to be in a volatile phase. Nevertheless, some experts are convinced that cryptocurrencies have a golden future ahead and could bring investors a lot of joy in the coming months.
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