Bitcoin has fallen after hitting a high of $90000, seemingly entering a period of respite and rest. Some traders pointed out that the market has gradually digested the positive impact of Trump's presidency on cryptocurrency, and the soaring momentum of Bitcoin has temporarily stopped.
As of press time, the price of Bitcoin has been adjusted around $86000. Since Trump announced his victory in the election, Bitcoin has risen by over 30%.
IG Australia Pty market analyst Tony Sycamore stated that although the possibility of further increase in Bitcoin prices cannot be ruled out, many good news have already been digested.
Still optimistic
Trump previously promised to establish a more friendly regulatory framework for cryptocurrencies and establish a groundbreaking Bitcoin strategic reserve, making the United States once again the global center of the cryptocurrency industry. This is the fundamental driving force behind the current rise in Bitcoin prices.
However, as the market focuses on issues such as Trump's tariffs, corporate tax cuts, and immigration, some analysts are concerned that the new government's support for the cryptocurrency industry may be relegated to a secondary position.
At the same time, most of Trump's policies are expected to push up US inflation, which will lead to the rise of US treasury bond bond yields and the US dollar, but they are bad for safe haven assets such as gold and cryptocurrency.
However, there is still widespread optimism in the cryptocurrency market. Crypto analyst Noelle Acheson stated that the relatively mild leverage in the cryptocurrency market has reduced the risk of a significant pullback, and a temporary break is necessary and welcome, but her expectations are very short-lived and the tailwinds remain strong.
According to Deribit data, Bitcoin call options are currently mainly betting that their price will exceed $100000. The inflow of funds into the US Bitcoin spot ETF is even more vigorous. Last Thursday, the daily inflow of funds into BlackRock's Bitcoin ETF exceeded $1.1 billion, setting a historical record.