All Eyes on Trump: Bitcoin Crash Could Pave the Way for a Historic Rebound in 2025

Bitcoin (BTC) recently hit an all-time high of $108,364, only to tumble to $92,118 within three days. This dramatic price drop coincides with growing political unease in the U.S., as the federal government faces a potential shutdown. Despite the downturn, some anticipate the emergence of a “God candle” that could mark bitcoins most impressive rebound yet.

Bitcoin Plunges: Could Trumps Policies Spark a Crypto Comeback Trail？

In recent days, the crypto market has been as unpredictable as the U.S. political scene. The looming U.S. government shutdown stems from stalled spending negotiations, a situation that historically affects markets in varied ways.

For instance, the S&P 500 has occasionally recorded modest gains during past shutdowns. Meanwhile, bitcoin and the broader cryptocurrency space have shown even less predictable patterns under similar circumstances.

Adding to the intrigue, Arthur Hayes, the former head of Bitmex, recently predicted a “harrowing dump” in crypto markets near Donald Trumps Inauguration Day. He attributed this to short-term disillusionment among market participants.

Former ‘Pharma Bro’ Martin Shkreli is incredibly downbeat on bitcoin. Just recently, he declared that Microstrategy‘s Michael Saylor might face liquidation, and he further suggested that bitcoin (BTC) might meander aimlessly for an extended period, possibly even years. He also cautioned that folks shouldn’t bank on Trump fulfilling his pledges, hinting that he might not deliver on them. Yet, some have merely dismissed Shkrelis views with a nonchalant shrug.

These views runs counter to the optimism of those who believe a Trump comeback could spark another legendary God candle—a term describing a massive one-day price spike that overshadows surrounding activity on the chart. While Hayes‘ warning has dampened spirits being a crypto supporter and Shkreli’s statements shrugged off, Trump supporters remain hopeful.

Whether you support Trump or not, it could be argued that his potential return to office, along with crypto-friendly policies and the idea of a U.S. strategic bitcoin reserve, could trigger a significant crypto market recovery. Its plausible that the steep drop Hayes forecasted is playing out right now, as I write this, with prices expected to climb back up should Trump enact such measures.

This would flip Hayes projection on its head. It very well could be said that the current downturn is a temporary lull—a bearish phase within a larger bullish cycle. Bitcoin could stage a monumental recovery if the U.S. resolves its budgetary woes for 2025 and Trump implements several bitcoin-focused strategies that encourage the market.

Such events might ignite a second wave of God candles after or amid Trump‘s inauguration, reshaping market dynamics and unleashing unparalleled growth. For now, though, bitcoin’s immediate price trajectory remains unclear. Whether Trumps presidency would usher in the anticipated boom is uncertain, but the crypto community is watching with bated breath.