Bitcoin, the world’s leading cryptocurrency, has been struggling to regain its footing. Recently hitting a low of $95,000, investors are eagerly searching for the next big catalyst to spark a resurgence in the market. Bitget CEO Gracy Chen believes there are several factors to watch closely—and they go beyond the usual suspects.
In a conversation with Bloomberg, Chen highlighted the potential influence of the new U.S. administration under President Donald Trump. Discussions are reportedly underway about the possibility of including Bitcoin in the country’s strategic reserve, but Chen urged caution. “Nothing is concrete,” she said, adding that the administration is “still debating whether and how” Bitcoin could be incorporated.
She doesn’t see this development materializing anytime soon. “I didn’t expect Bitcoin’s inclusion in the strategic reserve to become concrete in the first half of 2025—or even throughout the year,” Chen noted. While the idea is intriguing, she emphasized the importance of tempering expectations.
Beyond the Bitcoin Halving
Some investors have pinned their hopes on the 2024 Bitcoin halving as a potential trigger for growth. Chen, however, dismissed this notion. She explained that the halving, while significant, was already “priced in” and therefore unlikely to serve as a surprise catalyst. “Unexpected events are the real drivers of growth,” she stated.
For Chen, macroeconomic conditions will be the real gamechanger. She pointed to potential U.S. interest rate cuts and shifts in fiscal and monetary policy as critical factors to watch. “When the U.S. starts cutting interest rates and loosens its fiscal policies, that’s when we’ll see a significant impact on Bitcoin,” she said.
Musk, Trump, and the Power of Business Leaders
Chen also weighed in on the role of influential figures in shaping crypto markets. She highlighted Elon Musk’s impact on Dogecoin as a prime example. “Dogecoin’s price has largely been influenced by Elon Musk, who is more of a businessman than a politician,” she observed.
In her view, Trump carries a similar dual identity as both a business leader and politician. Chen believes this unique position gives him the potential to drive significant change. “Entrepreneurs like Elon Musk and even Trump can drive more change than traditional politicians,” she remarked.
As Bitcoin navigates this challenging period, Chen’s insights underscore the complex web of factors that could influence its next move. From macroeconomic shifts to the actions of influential leaders, the road ahead is anything but predictable.
