Standard Chartered: If Trump does not provide a catalyst to restart crypto market growth, sell-off risks will rise

Odaily News Ahead of Trump's inauguration day, cryptocurrencies surged on bullish expectations that the new president would enact supportive changes within days. When Trump entered the White House on Monday, Bitcoin jumped to an all-time high of $109,000, and investors cheered and eagerly awaited new pro-crypto policy announcements. However, the frenzy did not last. Bitcoin and other cryptocurrencies have been trending lower since January 20. On Wednesday, the token fell another 2%, trading at around $104,172. Analysts believe that the longer it takes for US President Trump to announce cryptocurrency-specific policies, the higher the risk of a painful sell-off for investors.
Standard Chartered said the weakening of market momentum and the possibility of a deeper correction reflect growing disappointment with the lack of new policy announcements. If the Trump administration does not provide new catalysts to restart growth, the pain will intensify. Geoff Kendrick, head of global digital asset research at Standard Chartered, said on Wednesday. "When hope is dashed, digital asset prices will fall 10-20%. Hope is not a strategy. It can last for a few days, but not weeks." (Businessinsider)