Bitcoin Price Rebound Potential Gains Momentum Amid Trump Policy Shifts

Bitcoin has shown signs of a potential short-term rebound in early 2026, with on-chain flows strengthening after a low point on December 24, 2025. Analysts suggest that miner production costs currently support the price floor, as miners are slowing production in anticipation of better pricing. Meanwhile, the proposed credit card interest rate cap by President Trump, set to take effect on January 20, 2026, could shift demand toward alternative financial systems like Bitcoin and decentralized finance (DeFi) platforms according to analysis.

The proposed policy aims to cap credit card interest rates at 10% for one year, potentially pushing low-credit-score users toward DeFi solutions. This shift could increase adoption of Bitcoin and Ethereum-based DeFi platforms such as Aave or Compound. Analysts view this as a 'seamless adoption cycle' that could benefit stablecoins and broader on-chain activity.

However, the broader 2026 macroeconomic outlook remains cautious, with waning liquidity and the potential for increased volatility. Bitcoin is currently trading below the estimated miner production cost of approximately $101,000 per BTC. While historical data indicates that this does not necessarily trigger panic selling, it creates a low-activity floor that may persist until stronger macroeconomic conditions take hold.

Could Trump's Policy Shift Drive Bitcoin Adoption?

President Trump's interest rate cap proposal represents a significant policy shift that could have macroeconomic implications for Bitcoin. By making traditional credit more expensive for low-credit-score consumers, the policy may indirectly encourage the adoption of alternative financial systems, including Bitcoin and DeFi. This shift could increase demand for stablecoins and Ethereum-based platforms, potentially boosting on-chain activity and transaction volume.

Analysts highlight that this shift may benefit stablecoin platforms, which are often used to facilitate DeFi lending and borrowing. As users seek alternatives to traditional credit options, stablecoins and DeFi platforms may see increased adoption.