Finance Spotlight | Bitcoin approaches US$100,000 on optimism over Trump crypto plans
Since breaking through the technical resistance level of US$97,000, Bitcoin's price has been hitting new highs. Analysts point out that after a golden cross formed between the five-day and ten-day moving averages, the bullish sentiment surged dramatically, attracting a large influx of investors to enter the market.
Recent trading volume indicates that Bitcoin's daily transaction volume has doubled in the past week, indicating that the market is not only seeing an influx of speculative funds but also long-term positioning by institutional investors. The dominance of the bullish market remains unshaken, with the general expectation that the next barrier of Bitcoin's price will be US$100,000.
Additionally, the price volatility of Bitcoin stands in stark contrast to the weakening of the US dollar index. Amid the backdrop of increasing inflation concerns and uncertainty in the Fed's monetary policy, Bitcoin, as digital gold, is once again seen as an important tool for hedging risks.
Since Trump re-entered the political stage, his policy stance on cryptocurrencies has become a focus of market attention. His various commitments and personnel arrangements are seen as significant positives for the Bitcoin market. Trump clearly stated that if he returns to office, he will make significant reforms to the Securities and Exchange Commission (SEC) with sweeping changes, including the dismissal of current chairman Gary Gensler and appointing a leader who is more friendly to cryptocurrencies. The implementation of this plan will directly affect the regulatory environment for Bitcoin and other cryptocurrencies in the United States.
Market analysts indicate that the SEC's strict stance on cryptocurrencies has limited this industry's potential. If Trump's new policies can alleviate regulatory pressures, more capital will flow into the Bitcoin market, providing continued support for its price. With the backing of Trump's policies, the sentiment in the Bitcoin market is high. However, this comes with inherent challenges. The rapid rise in Bitcoin's price has attracted a significant amount of short-term speculative funds, which are highly sensitive and may quickly exit the market if sentiment shifts, potentially leading to short-term price corrections. Investors must remain cautious of the risks associated with high volatility while enjoying the benefits of a bullish market.
Despite Trump's promise to ease regulations on cryptocurrencies, he has not detailed the specifics of how these policies will be implemented. If, during his new term, the government's support for cryptocurrencies fails to materialize or does not meet expectations, it could have adverse effects on the market. Trump's vision of making Bitcoin a superpower must contend with competition from other countries, including the European Union and China, which are accelerating their own strategies. If the United States cannot achieve breakthroughs in technology and policy, its leadership position may be challenged.
The resonant effect of Bitcoin and new policies may also diminish. In summary, whether it is regulatory easing, personnel adjustments, or this time a victory on the sentiment front, or the concept of strategic reserves, Trump's policy proposals are shaping a new landscape for the Bitcoin market. However, as specific investors, we still need to be alert to the ongoing risks of market volatility. While enjoying the benefits of these policies, it is crucial to closely monitor changes in the international economic situation and policy trends to secure our gains.
(Guest: Fu Rao | Reporter: Kato Ip | Editor: Yi Wang | Producer: Kelly Yang)
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