Donald Trump’s Inauguration Day is Getting Closer! So What Will Happen to Bitcoin Price? Experts Discuss

Driven by major catalysts such as the approval of ETFs, Fed policies, and Donald Trump’s election victory. Bitcoin’in Its tremendous growth in 2024 paved the way for a very important year in 2025.

Although BTC has surpassed $100,000, its momentum has slowed as investors evaluate the next phase of its development.

On Yahoo Finance’s Market Domination show, host Julie Hyman, markets reporter Josh Schafer, and Interactive Brokers Chief Strategist Steve Sosnick examined the trends shaping Bitcoin’s course, along with insights from Asymmetric founder and CEO Joe McCann.

In 2024, Bitcoin benefited from a triple catalyst: regulatory developments regarding ETFs, the Federal Reserve’s easing of monetary policies, and optimism surrounding Donald Trump’s election victory. However, as the president-elect will take office in January 2025, experts debated whether current prices reflect these developments or whether new gains are on the horizon.

Joe McCann noted activity in the options market that points to the expectation of a potential price increase in early 2025. “There is a significant open interest in January quotes, indicating the expectation of a new rise,” McCann said. But McCann also warned of inherent volatility in the crypto market even as Bitcoin matures and institutional adoption increases.

While Bitcoin is often viewed as “digital gold,” its future utility could go far beyond just being a store of value. McCann noted increased developer activity in the Bitcoin ecosystem, particularly in decentralized finance (DeFi) applications. Early-stage companies are exploring Bitcoin as a payment layer for DeFi products, a space traditionally dominated by Ethereum and Solana.

“Bitcoin lending protocols already exist and we are likely to see further innovation in 2025,” said McCann, adding that the launch of strategic Bitcoin reserves could further support Bitcoin adoption.

The regulatory environment under the Trump administration was also touched upon in the speech. McCann expressed optimism, citing the appointment of “innovative” consultants such as David Sacks and collaboration with industry leaders such as Marc Andreessen. These appointments indicate a shift towards common-sense regulations aimed at encouraging innovation.

“We expect clarity on critical issues such as stablecoin legislation and market structure reforms,” McCann said and added: “cryptocurrencies Clear definitions, such as whether to classify as a security or a commodity, could fundamentally reshape the market.”

*This is not investment advice.