The Inauguration Surge
Pro-Bitcoin Administration Impact
Dear Bitcoiners,
Bitcoin is surging as we’re just moments away from the inauguration of a pro-Bitcoin administration! Here at Bitcoin Strategy, we’ve been discussing this for weeks, analyzing the severity of the recent pullback and preparing for this exact breakout. This week we’ll compare the market cap growth among presidential terms, how the Biden administration was one of the factors for the dampened growth of the previous cycle, and the pro-Bitcoin times ahead.
Market Cap Growth per Presidential Term
In the chart above, Bitcoin’s market cap growth is normalized to highlight relative performance across presidential terms. Growth is reset at the start of each term, offering a clear view of compounded performance over time.
This approach emphasizes a key point: 👉 unlike previous cycles, where there was little to no government interference, the last administration imposed significant hindrances. From regulatory uncertainty under the SEC, delayed ETF approvals, and Operation Chokepoint 2.0 restricting access to banking services, the challenges were substantial.
Now, with Trump’s pro-Bitcoin administration, these barriers are not only being removed but also replaced with policies and personnel aimed at enabling growth. The resignation of SEC Chair Gary Gensler, along with several staff members of the FDIC linked directly to Operation Chokepoint 2.0, and new appointments like Paul Atkins, mark a true change toward a pro-Bitcoin regulatory environment.
While it may be unreasonable to expect market cap growth comparable to the early cycles due to diminishing returns, the combination of a gradually reducing tradable supply (HODL model theory) and a supportive administration makes outperforming the previous cycle a plausible scenario.
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As explained in the previous newsletter, there was limited time for a continuation of the pullback, with Trump’s inauguration only moments away. In the next part, we’ll have a close look at the indicators regarding current price action.
