The cryptocurrency market has always been sensitive to major global events, and U.S. presidential inaugurations are no exception. These pivotal political moments often signal changes in economic policies and market dynamics, leaving their mark on investor sentiment. By looking at Bitcoin’s performance during the inaugurations of 2017 and 2021, we can uncover interesting patterns and trends that might give us insight into how future events could impact the crypto market.
The 2017 Inauguration
On Friday, January 20, 2017, Donald Trump was sworn in as President of the United States. At that time, Bitcoin was in the early stages of a major bull run, trading around $900.
About 15 days before the inauguration, Bitcoin hit a local high of $1,150. This was followed by a sharp correction of 34%, bringing the price down to $750. By the inauguration date, Bitcoin’s price had stabilized, entering a consolidation phase. What followed was a historic bull run that lasted through December 2017, pushing Bitcoin’s price to nearly $19,700—a monumental rise.
The 2021 Inauguration Event
When Joe Biden took office on January 20, 2021, the crypto market was again in the middle of a bull run. Bitcoin was trading around $35,000, just before the explosive leg of the 2021 bull market.
Roughly 12 days before the inauguration, Bitcoin hit a local high near $42,000. A significant drop of about 25-27% followed, bringing the price down to approximately $32,300. After this, Bitcoin entered a consolidation phase leading up to the inauguration. However, another 15% dip occurred shortly afterward, testing the $32,300 support level again. From there, Bitcoin staged a massive recovery, eventually reaching a new all-time high of $64,850 on April 13, 2021.
The 2025 Inauguration Event
As we approach the next inauguration, set for January 20, 2025, it’s hard not to notice some parallels with previous events. About 10-15 days before the event, Bitcoin recently hit a local top of $102,750. This was followed by a correction of around 13%, a pattern reminiscent of the consolidations seen in 2017 and 2021.
That said, it’s important to remember that past performance doesn’t guarantee future results. While these patterns are intriguing, the outcomes are not always the same. What makes this inauguration particularly interesting is that, for the first time, the incoming government has openly promised to support cryptocurrencies. How this commitment will influence market behavior remains to be seen, but it certainly adds an extra layer of anticipation for crypto enthusiasts.
Final Thoughts
With Donald Trump’s inauguration on January 20, 2025, just around the corner, the crypto community is closely watching for any signs of market movement. This time could be different, as the new government’s pro-crypto stance introduces a unique dynamic. While it’s impossible to predict how the market will react, the parallels with past events give us plenty of food for thought. As always, staying informed and prepared is the key to navigating the ever-changing crypto landscape.
