According to a forecast by Quinn Thompson, a top manager at the hedge fund Lekker Capital, Bitcoin could drop to the range of $50,000-$60,000 by the end of 2025 due to the policies of U.S. President Donald Trump. In an interview with CoinDesk, the expert emphasized that the negative consequences of Trump’s policies could significantly impact the cryptocurrency market.
This is reported by Finway
Impact of Trump’s Policies on the Market
Thompson believes that the likelihood of a market correction similar to that which occurred in 2022 is quite high. He noted that job cuts, the Federal Reserve’s (Fed) tight policies, and new immigration measures could put pressure on the markets over the next 6-9 months.
“The White House is likely to continue these tough measures until the market starts to ‘scream in pain’ or until the midterm elections approach. The worst part is that this will be a slow and exhausting decline, rather than a sharp crash,” said Quinn Thompson.
Main Risks to the Economy
Thompson also pointed out four key risks that could negatively affect the economy:
- Reduction in government spending: The Department of Government Efficiency aims to cut expenditures that have stimulated labor market growth;
- Tight immigration measures: Increased efforts to combat illegal immigration could have negative consequences for the labor market;
- Trade tariffs: Uncertainty in customs policy creates challenges for businesses, forcing companies to delay investment decisions;
- Fed policies: Instability in inflation data delays the easing of financial conditions.
“Considering all these factors, stock and cryptocurrency markets are unlikely to have a good year. Moreover, the White House does not currently show much concern about the possibility of a recession,” the expert noted.
Thompson also mentioned that Trump may maintain this course until the situation becomes critical or until the beginning of 2026, when the midterm elections will take place.
Recall that earlier, the head of the Bank of France, François Villeroy de Galhau, expressed the opinion that Trump’s policies aimed at supporting crypto assets could lead to a new financial crisis in the future.