Potential Bitcoin Price Rebound: Could Trump’s Credit Definition Trigger It?

According to on-chain analyst Willy Woo, Bitcoin's price may be nearing a short-term recovery, influenced by recent developments in U.S. macroeconomic policies that could enhance cryptocurrency adoption.

Key Takeaways

Bitcoin is showing signs of a potential short-term rebound as investor flows strengthen.
Current Bitcoin prices are below miner production costs, which historically has not led to panic selling.
President Trump's proposed cap on credit card interest rates may push consumers towards Bitcoin and decentralized finance (DeFi).
Despite some bullish indicators, long-term liquidity concerns remain, with a cautious view for 2026.

Woo's analytical models suggest that investor interest in Bitcoin reached a low point on December 24, 2025, but has shown a consistent recovery since that time. While he maintains a cautious outlook for 2026 due to decreasing liquidity, the immediate forecast appears cautiously optimistic over the upcoming weeks.

Bitcoin Signals an Upswing Amid Trump's Credit Card Cap Proposal

Currently, Bitcoin is priced around $90,580, which is below the miner production costs estimated to be approximately $101,000 per BTC.

Analyst Wimar.X points out that historically, trading below the miner cost does not trigger panic selling. Instead, miners tend to reduce production and wait for more favorable conditions, creating a temporary period of low activity that often serves as a support level.

“BTC is inexpensive compared to production costs... Many people panic sell here. Then, BTC rebounds above the miner’s cost, and a bullish sentiment resurfaces,” Wimar.X commented.

On the other hand, Willy Woo emphasizes that actual inflows into Bitcoin, rather than speculative narratives or correlations with the equity market, are crucial for Bitcoin’s recovery.

“The entire market could rise without BTC if investors aren’t putting actual money into it,” he explained. “Our focus is on measuring the real flows of investing into BTC... not hypothetical inflows based on narratives.”

The dynamics of technical activity and real investment might coincide with a significant macroeconomic factor: President Donald Trump’s recent suggestion to limit credit card interest rates to 10% for one year, effective January 20, 2026.

Could Trump's Credit Cap Drive Users to Bitcoin and DeFi?

Through his proposal to cap credit card interest rates at 10%, President Trump aims to alleviate the financial strain on many Americans. However, this may limit access to traditional credit for individuals with credit scores below 780.

Analysts and crypto commentators warn that this development could unintentionally direct those affected toward alternative financial options, including Bitcoin.

🚨 THIS COULD BE POSITIVE FOR BITCOIN!

Markets are expected to react to Trump’s call for a 10% credit card interest cap. Companies like Visa and Mastercard may face consequences as consumers with scores under 780 might lose card access. This could lead many to explore options like Bitcoin.

Some analysts, like Crypto Rover, have highlighted that banks such as Visa and Mastercard could experience short-term fluctuations as they adapt to possible restrictions impacting higher-risk borrowers.

“We will witness the market's response tomorrow regarding Trump's caps on credit card interest rates, which might substantially affect Visa and Mastercard,” wrote analyst Crypto Rover.

Industry observations suggest that this policy could drive banks to offload low credit-rated customers, prompting them to seek DeFi lending services through platforms like Aave or Compound.

Crypto theorists believe this might trigger a “smooth adoption cycle,” increasing interest in stablecoins, Bitcoin, and Ethereum-based DeFi services.

While Woo sees a possibility for a short-term rebound, he remains wary about the overall 2026 outlook. Liquidity has been shrinking relative to price movements since January 2025, implying that while temporary price increases can occur, they might lack the sustainability needed for long-term gains.

Despite this, the combination of miner-cost support, increasing inflows, and policy-driven demand sets up a situation of high volatility for Bitcoin.

As markets prepare for the policy’s implementation on January 20 and the evolution of liquidity trends, the approaching weeks will be crucial in determining whether Bitcoin can leverage both fundamental investment flows and macroeconomic developments. This situation creates a unique turning point where short-term positive forces coincide with broader uncertainties.