US Elections Another ‘Buy the Rumor, Buy the News’ Event for BTC: Pantera
2025 is shaping up to be another banner year for Bitcoin (BTC) and the broader crypto market, courtesy of President-elect Donald Trump.
Pantera's “The Year Ahead in Crypto” attempts to dispel the US presidential election's “buy the rumor, sell the news” threat to Bitcoin.
In traditional markets, this adage refers to the common investment strategy of buying assets when there is positive news and selling when the news is confirmed later. The idea is that the price of the asset will increase while waiting for the news and will decrease after it is confirmed.
Pantera drew parallels between the pro-Crito Trump election in January 2024 and the launch of Bitcoin exchange-traded funds (ETFs).
A year ago, Pantera “believed that the previous Wall Street statement did not apply to the launch of Bitcoin ETFs even though CME Bitcoin futures were live for the day and Coinbase was publicly listed,” the letter read.
In the year Bitcoin's price has risen sharply following the launch of spot ETFs in 2024, defying the Wall Street adage of “buy the rumor, sell the news.” Source: Pantera Capital
According to Pantera, the launch of EFS was a “buy the rumor, buy the news” phenomenon, as evidenced by Bitcoin's 100% price increase last year and more than $40 billion inflows into the fund.
“The US election is another ‘buy the rumor, buy the news' phenomenon,” Pantera said.
Related: US Bitcoin ETF Assets Break $100 Billion
Trump campaigner
After a historic rally above $100,000 in December, bitcoin's price has cooled over the past four weeks, with some traders eyeing a deeper correction around $80,000.
The recent sell-off had less to do with Trump's crypto policies and more to do with the jaw-boning of the hawkish Federal Reserve after policymakers signaled a much slower pace for interest rate cuts. A rising US dollar puts pressure on riskier assets, including bitcoin.
However, many industry participants believe Trump could reignite the bull market after his inauguration. In a December podcast, Jack Mallers, CEO of Stake, said Trump could sign an executive order declaring Bitcoin a reserve asset on “day one.”
User X expresses his high hopes for the crypto market after the inauguration of US President-elect Donald Trump. Source: Cold Blood Schiller
Meanwhile, Scott Mason, senior policy advisor at Holland & Knight, told Business Insider that Trump's rise to the top “definitely lends credibility to cryptocurrency and Bitcoin,” which will have a positive impact on prices.
Trump's political appointments have excited the blockchain industry so far, with pro-crypto Paul Atkins as chairman of the Securities and Exchange Commission and David Sachs joining the White House as AI and crypto czar.
Magazine: Trump's Bitcoin Policy Hits China, Deeply Fake Fraudsters Broke: Asia Express
