The historical patterns of the cryptocurrency total market cap ($TOTAL) suggest that presidential inaugurations play a pivotal role in driving market sentiment and potential rallies. According to a comprehensive analysis by Dom (@traderview2), the crypto market's trajectory following the last two inaugurations has displayed striking similarities, raising the question: is 2025 going to follow the same bullish playbook? This time, however, the dynamics may shift due to the "crypto-friendly" nature of the new president.
The crypto market cap in 2017 witnessed an exponential climb following the presidential inauguration. Starting from a base level below $20 billion in January, the market erupted into a monumental rally. By mid-year, $TOTAL soared beyond $100 billion, signaling the early stages of the now-famous 2017 bull run that culminated in Bitcoin reaching nearly $20,000.
Dom’s chart highlights a boxed region just after the inauguration, marking a consolidation phase before the breakout—a textbook setup for explosive growth. By the end of the rally, $TOTAL reached levels previously unimaginable.
Fast forward to January 2021, and the charts once again reveal a striking resemblance. Following the inauguration, the crypto market exhibited a similar consolidation zone, mirrored by Dom's rectangular annotation on the chart. This phase, initially seen as market indecision, quickly turned into a strong upward momentum.
The total crypto market cap surged from approximately $800 billion to an all-time high exceeding $2.5 trillion by November. This massive expansion was driven by institutional adoption, DeFi mania, and an influx of retail investors chasing gains.
Now, the 2025 inauguration paints a similar picture, with $TOTAL consolidating around $1.5 trillion. The chart for this year, as shared by Dom, reflects a familiar boxed consolidation phase. However, the key differentiator this time is the new president’s pro-crypto stance, which could act as a catalyst for unprecedented growth.
Unlike previous administrations, the current leadership has shown support for blockchain innovation and digital assets, potentially laying the groundwork for regulatory clarity and broader adoption.
The question posed by Dom—"Is this time different?"—resonates strongly, as previous inaugurations have set the stage for multi-year bull runs. With the market currently exhibiting a solid consolidation phase, historical patterns suggest the possibility of a breakout. However, as with all markets, external factors such as macroeconomic conditions and regulatory developments will play crucial roles.