The Coinbase Premium Index has hit record lows, signaling weak market demand and prompting warnings about a potential BTC crash. Some experts believe that the market is 'delusional' and overvalued BTC based on pro-crypto policies that may not materialize. Despite this pessimism, others anticipate key policy changes, such as the establishment of a BTC strategic reserve, which could drive BTC's price in 2025.
Coinbase Premium Index has dropped to record yearly lows, underscoring weak demand in the market. Some experts even claimed the event could crash BTC because the market is ‘delusional’ and overpriced the asset on pro-crypto policies that might as well fail to materialize.“It’s highly likely that the market has delusional expectations for the pace of policy changes and will overprice the impact running into the inauguration.
”This cautious position was also shared by the Co-founder of BitMEX and crypto investor Arthur Hayes. In his December newsletter, Hayes warned that the inauguration could be marked by a massive sell-off. He “I believe the crypto markets will experience a harrowing dump around Trump’s January 20 2025, inauguration day.” Additionally, based on seasonality trends, January isn’t one of the best months for BTC. Should history rhyme, BTC could face a However, part of the community still expects key policy changes, including the creation of the BTC strategic reserve. In fact, the BTC reserve could be the primary catalyst for BTC’s price action in 2025. That being said, the Coinbase Premium Index indicated that December’s sell pressure for the cryptocurrency has extended to early 2025. In most cases, BTC’s rebound coincides with strong demand from Coinbase (U.S investors). So, the low demand suggested that a BTC rebound was still not on the cards, at least not at press time.Benjamin is a Telecommunication Engineering graduate who is passionate about crypto-markets and unraveling market trends. Armed with charts and patterns, he's interested in making the intricate, complex landscape of digital assets more palatable for every user.Subscribe to get it daily in your inbox
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