Bitcoin and Altcoin markets continue to pressure US President Donald Trump’s economic policies. According to Quinn Thompson, the founder of Lekker Capital, the White House’s policies focusing on financial discipline constitute a negative environment for risky assets. Thompson predicts that the process will continue to the point where the market cannot withstand this pressure and that this may last until the 2026 mid -elections. However, the worst side is that this process will take place in the form of a long -term blood loss instead of a sudden collapse.
Bitcoin may drop to $ 50,000
Stating that Bitcoin’s current correction process is still in the initial stage, Thompson said the price may fall between $ 50,000-59,999 by the end of the year. This means a significant decrease in Bitcoin’s current price of $ 83,000.
“This decline does not occur fast, so it can be quite surprising and painful for people. We do not see large liquidations or sudden collapses in the market, instead we are experiencing a slow but continuous decline, Thom Thompson said, mı Have we reached the bottom level?” He said he might have to ask the question many times.
Thompson also said that policies about the crypto announced by the White House do not mean “nothing” and offers “sales opportunities for investors. In addition, Microstrategy (MSTR) claimed that Bitcoin purchases did not provide real support to the market.
Trump policies and economic risks, the biggest factors
According to Thompson, there are four main factors that adversely affect the current economic environment:
- Discounts in government expenditures: the Government Productivity Department in the United States (DOGE) aims to make great deductions in public expenditures within the scope of the Trump administration’s policies to reduce budget deficit. This unit, led by Elon Musk, plans to save $ 1 trillion by the end of the year. However, the decrease in public expenditures may adversely affect employment.
- Migrant Policies and Labor Market: The Trump administration continues to take harsh measures against illegal migration on the southern border. This can reduce labor supply and lead to an increase in employee salaries, which means cost increase for some businesses.
- Customs duties and uncertainty: constantly changing customs duty policies of the Trump administration lead to postpone businesses’ investment decisions and uncertainty in the markets.
- FED’s policies: The US Federal Bank (FED) is cautious in interest rate cuts due to the fact that inflation data does not reach the expected level. At the end of 2024, the FED reduces interest rates to 4.25% -4.5%. It is expected that in 2025, an additional discount of 25 to 75 basis points. However, the positive impact of this discount on the market may be limited.
When will the bottom be seen in the markets?
Thompson said that a positive turning point for the markets will not be seen during the White House’s policies. According to him, the White House can only change the route when the market is under great pressure or when the 2026 midterm elections approach.
“Think of it as a controlled combustion. But sometimes controlled fires can turn into large forest fires. We will continue to see the impact of these policies throughout 2025, Thom says Thompson.
Therefore, the high volatility period in crypto money markets is not expected to end soon. The future of Bitcoin and other risky assets will be shaped in the coming months depending on the developments in US economic policy.
