Bitcoin reset? Trump’s 10% Credit Cap Sparks Crypto Buzz
According to Chain analyst Willie Woo, Bitcoin price may be on the verge of a short-term recovery, as macroeconomic policy developments in the US could accelerate crypto adoption.
Woo's data-driven models predict that investors will enter Bitcoin in 2018. They indicate that it bottomed out on December 24, 2025 and has been steadily strengthening ever since. While the broader outlook for 2026 is cautious due to declining liquidity, recent setups suggest a cautious window in the coming weeks.
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As Trump's credit card cap increases, Bitcoin flows signal to return
Bitcoin is currently trading around $90,580, which is roughly below the estimated mining price of $101,000 per BTC.
According to analyst Wimar.X, trading below the miner's price does not historically trigger panic selling. Instead, miners delay production and wait for better prices, which often act as a temporary floor in a zone of low activity.
“BTC is cheap relative to what it takes to produce it… Most people panic sell here. Then BTC goes back above the mining price, and suddenly everyone turns bullish again. Every cycle is the same story,” Wimar.X said.
Elsewhere, on-chain analyst Willie Woo emphasized that actual spot flows, rather than narratives or equity market correlations, are the key drivers of Bitcoin's price recovery.
If investors don't allocate, the entire market can rally perfectly without BTC. “Our work focuses on measuring the flows of real investors into BTC… not the fictitious flows from narrative.”
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The technical and flow-based picture is likely to be coupled with the recent proposal to hike credit card interest rates by 10% from January 20, 2026.
Trump's Credit Cap May Push Consumers to Bitcoin and DeFi
President Donald Trump recently pushed to raise credit card interest rates by 10% to ease the financial burden on millions of Americans. It may limit access to traditional credit for consumers with scores below 780.
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Analysts and crypto analysts warn that this move could inadvertently lead these users to alternative financial systems, including Bitcoin.
Others pointed out that banks like Visa and MasterCard could face short-term volatility as they could be barred from high-risk borrowers.
“Tomorrow, we will see the market reaction to Trump's request for a 10% cut in credit card interest rates, which could have a significant impact on Visa and MasterCard,” wrote analyst CryptoRover.
Industry analysts have pointed out that the policy could lead banks to offload customers with poor credit, who could then enter DeFi lending platforms like Aave or Compound.
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Crypto theorists suggest that this could create a “flawless cycle of adoption”, using stable coin, Bitcoin and Ethereum-based DeFi infrastructure to increase demand for DeFi services.
While Woo sees the possibility of a near-term rebound, he is cautious about the broader outlook for 2026. Liquidity flows have been declining relative to price movements since January 2025, suggesting that while temporary rallies may occur, they may lack the support necessary for a further reversal.
However, mining cost support, strengthening flows, and policy-driven demand integration create a highly volatile environment for Bitcoin.
With markets bracing for the policy to take effect on January 20 and continued liquidity trends, the coming weeks could be critical to test whether bitcoin can weather both flow-based fundamentals and macroeconomic shocks.
This creates an unusual inflection point where short-term bullish forces meet structural instability.
