2025 is shaping up to be another banner year for Bitcoin (BTC) and the broader cryptocurrency market, with the inauguration of President-elect Donald Trump set to drive markets even higher, according to Pantera Capital’s latest blockchain letter.
Pantera’s “The Year Ahead in Crypto” sought to dispel fears that the United States presidential election was a “buy the rumor, sell the news” event for Bitcoin.
In traditional markets, this adage refers to a common investment strategy of buying an asset when there are positive rumors and selling it when the news is later confirmed. The idea is that the asset’s price will rise in anticipation of the news and then decline once it’s confirmed.
Pantera drew parallels between the election of pro-crypto Trump and the launch of spot Bitcoin exchange-traded funds (ETFs) in January 2024.
One year ago, Pantera “believed the old Wall Street adage would not apply to the launch of the spot Bitcoin ETFs despite it working perfectly for the days CME Bitcoin futures went live and Coinbase publicly listed,” the letter read.
Bitcoin’s price rallied sharply in 2024 following the launch of spot ETFs, defying the Wall Street adage of “buy the rumor, sell the news.” Source: Pantera Capital
According to Pantera, the launch of the ETFs was a “buy the rumor, buy the news” event, as evidenced by Bitcoin’s 100% price surge over the past year and the more than $40 billion in cumulative inflows into the funds.
“The U.S. election is another ‘Buy The Rumor, Buy The News’” event, said Pantera.
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The Trump catalyst
After a historic rally above $100,000 in December, Bitcoin’s price has cooled over the past four weeks, with some traders eyeing a deeper correction toward the $80,000 region.
The recent sell-off had less to do with Trump’s crypto policies and more to do with hawkish Federal Reserve jawboning after policymakers signaled a much slower path to interest rate cuts. A surging US dollar also put a damper on risk assets, which include Bitcoin.
However, several industry participants believe that Trump could reignite the bull market post-inauguration. In a December podcast, Strike CEO Jack Mallers said Trump could sign an executive order on “day one” declaring Bitcoin a reserve asset.
An X user expresses their high aspirations for the crypto market after US President-elect Donald Trump’s inauguration. Source: Cold Blooded Shiller
Meanwhile, Holland & Knight senior policy adviser Scott Mason told Business Insider that Trump’s ascendancy “certainly gives credibility to cryptocurrency and Bitcoin,” which could have a positive impact on price.
Trump’s political appointments so far have pleased the blockchain industry, with the pro-crypto Paul Atkins set to chair the Securities and Exchange Commission and David Sacks joining the White House as its AI and crypto czar.
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