Bitwise Analyst Explained the Reason Why Bitcoin Failed to Rise and Listed His Expectations!

It was held last November and Donald TrumpThe US Presidential elections resulted in the victory of both the dollar and Bitcoin It brought a rise to cryptocurrencies such as.

While the dollar continued to strengthen after Trump’s victory, analysts said that this rise of the dollar was similar to the rise after Trump’s victory in 2016.

When Trump was first elected president in 2016 DXY It peaked in December but declined over the next 12 months. This decline in the dollar coincided with Bitcoin’s rise in 2017.

At this point, although there is an expectation that the same situation will happen in the market now, the story of the dollar and Bitcoin may be different this time. Because experts stated that there are no signs of decline in DXY yet and that Trump’s economic policies and FED decisions may support the rise of the dollar.

While a strong dollar is considered negative for risky assets such as Bitcoin, incoming Trump’s support for Bitcoin brought new ATHs.

But even though Trump has backed Bitcoin, Bitwise Europe research head Andre Dragosch said that the strong dollar and FED policies may create difficulties for Bitcoin in 2025.

He said that the rise in Bitcoin will not continue at the same pace due to the strong dollar, higher yields and geopolitical uncertainties.

“The FED is currently stuck in a quandary. There are two options: Either do too little, act too late and risk a recession in the United States, or risk another significant acceleration in inflation.

At its last meeting, the FED told the markets that they would make only two cuts in 2025. This is why the dollar is gaining value and yields are continuing to rise.

I think what also affects BTC and brings a decline is the rise of the dollar. Macroeconomics is currently a headwind for Bitcoin.”

*This is not investment advice.