On-chain data point to Bitcoin rebound as Trump credit cap may boost DeFi

Beincrypto reports that on-chain data suggest Bitcoin may have bottomed in late December, opening a short-term rebound window, according to analyst Willy Woo, whose models show investor flows bottomed on December 24, 2025, and that President Donald Trump’s proposed 10% credit card interest cap could push some consumers toward Bitcoin and DeFi alternatives.

Bitcoin is trading around $90,580, below estimated miner production costs of about $101,000 per BTC. Analyst Wimar.X said trading below miner cost typically leads miners to slow production and creates a zone of low activity that can act as a temporary floor. Woo stressed that actual spot inflows — not narratives or equity correlations — are the key drivers of a Bitcoin recovery, saying the market can rally without BTC if investors aren’t allocating.

The report notes the proposed 10% cap is intended to take effect on January 20, 2026, and that analysts and crypto commentators warn it may restrict traditional credit for lower-score consumers and push banks to offload higher-risk customers toward DeFi platforms. Woo remains cautious on the broader 2026 outlook because liquidity flows have declined since January 2025, so while a short-term rally is possible the coming weeks will be a critical test of whether flows and policy shocks can sustain upside.

Key Topics

Crypto, Bitcoin, Willy Woo, Donald Trump, Defi, Visa