The price of Bitcoin has just reached its highest level in nearly a month, surpassing $104,000 and approaching $105,000, amid Mr. Donald Trump's preparations for his second term as President of the United States.
Bitcoin surges due to expectations from the new administration
According to reports, the administration #TRUMP may announce a series of executive orders related to crypto immediately after taking office. This includes:
New management directive at the SEC (U.S. Securities and Exchange Commission).
Establishing a national Bitcoin reserve fund – an idea that could revolutionize how nations approach crypto.
Currently, Bitcoin is trading at $104,585, up nearly 5% in the past 24 hours and just 3% away from its historical peak of $108,135 in December.
Market sentiment is optimistic but easily reversible
Analyst Valentin Fournier from #BRN warns that overly high expectations from investors could lead to a "sell the news" effect – that is, panic selling when good news is announced but does not meet expectations.
"The implementation of Trump's proposed measures could be delayed, putting downward pressure," Fournier noted.
Large capital inflows from ETFs and investor preparations
The Bitcoin ETF market is also recording strong capital inflows:
$755 million on Wednesday.
$626 million on Thursday.
According to Steven Lubka, Director of Advisory at Swan Bitcoin, this weekend's trading day is the last opportunity for investors to position themselves before the market reopens after Martin Luther King Jr. Day.
National Bitcoin outlook and growth potential
If Mr. Trump realizes the idea of establishing a national Bitcoin reserve fund, other states in the U.S. may quickly follow suit.
Juan Leon, Senior Strategist at Bitwise, noted:
"This idea is developing faster than expected, and the possibility of a state or nation establishing a Bitcoin reserve this year is very realistic."
Conclusion
Mr. Trump's inauguration event is driving an optimistic wave in the crypto market, helping Bitcoin to grow impressively. However, investors should be cautious of the possibility of price adjustments when expectations are not met as anticipated.
Note: Investing in crypto always carries high risks. Consider carefully before making decisions.