@wendellfunk
Bitcoin's volatility around Trump's January 20th inauguration reveals a pattern of political events shaping long-term market sentiment. Political uncertainty (e.g., policy shifts, regulatory threats) triggers short-term volatility, but markets adapt over time. Post-inauguration, BTC's 20% swing within two weeks reflected uncertainty about Trump's crypto stance, but longer-term, sentiment stabilized as policies became clearer. Historical data shows political events (elections, policy announcements) cause 10–15% short-term swings, but fundamentals (adoption, technology) dominate long-term trends. Investors now factor political cycles into risk models, treating them as transient volatility sources.
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