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Trump Trade Tactics to Fuel Bitcoin Surge as Markets Stabilise
- The crypto market has cooled after a recent surge, with Bitcoin stabilising at a new support level of US $90k.
- Analysts, including Tom Lee of Fundstrat Global Advisors, believe the recent rush could be the beginning of a longer-term bullish trend for Bitcoin and co.
- Trump’s proposed economic strategies, such as reduced government spending and lower taxes, could add liquidity to markets and encourage risk-taking.
- Lee also highlights that major stock indices are holding key support levels, suggesting global markets are positioned for a potential rally.
The crypto market is slowing down following a frenetic post-Trump ecstasy, with Bitcoin settling at a new support of US $90k (AU $138k). While investors take profits and re-jig their portfolios, several in the industry believe last week’s rush may just be the beginning.
As progressive policies likely hit the sector, experts such as Tom Lee predict the global markets to react as we enter the new year.
Related: Trump to Cool Down on Crypto Crackdown, Shifts Justice Focus to Immigration
Trump’s Economic Policies Encourage Risk-Taking, Primed for Bitcoin Explosion
Speaking on CNBC’s Squawk Box, Fundstrat Global Advisors Head of Research, Tom Lee, discussed how Trump’s leadership might impact the economy.
Lee noted that clarity around monetary policy likely spells good news for Bitcoin, with the president-elect’s overall strategy involving reduced government spending and lower taxes. If these are successfully implemented, it could add liquidity to the markets which encourages risk-taking – something that has historically benefited the price of Bitcoin.
The administration’s policies support risk-on sentiment, and Bitcoin is positioned to capitalise on this environment.
Fundstrat Global Advisors Head of Research, Tom Lee Markets Holding Key Support Lines, Preparing for Potential 2025 Lift-off
Lee also discusses broader the fiscal environment, particularly following Fed Chair Jerome Powell’s comments that they may slow down rate cuts.
While, at first glance, this may appear negative for the industry, Lee says that over the next 12 months the number of rate cuts will remain the same – the short-term timeline has just been altered.
The number of implied cuts is still the same… I think [Jerome Powell] is doveish, he’s just moving some of the timing.
Fundstrat Global Advisors Head of Research, Tom Lee Finally, Lee looks toward traditional markets to assess the potential ramp-up to a bull run moving into 2025.
Major indices have pulled back to support…the Nasdaq is on a support line, S&P did a retrace and small caps are held above the bullish price…Bitcoin often aligns with this setup before a broader rally.
Fundstrat Global Advisors Head of Research, Tom Lee 
Author
Ben Knight
Ben Knight is a writer and editor from Melbourne with a passion for all things music and finance. He enjoys turning complex topics – especially the technical details of cryptocurrency – into digestible bites that anybody can understand. He acquired his Master’s in Writing, Editing and Publishing from RMIT in 2019 and has run his own creative writing business ever since.
