The price of Bitcoin has hit a new historical high!
On the morning of the 16th Beijing time, the price of Bitcoin broke through $106000, an increase of over 3%, and once again set a new historical high. Last week, US President elect Trump announced his plan to establish a US Bitcoin strategic reserve similar to the Strategic Petroleum Reserve. Trump said, "We will do some great things in the field of cryptocurrency
Data shows that since Trump won the US presidential election on November 5th, US ETFs directly investing in Bitcoin have attracted a net inflow of $12.2 billion (approximately RMB 88.8 billion).
On the Hong Kong stock market today, cryptocurrency concept stocks rose against the trend, with Boya Interactive rising nearly 10% at one point. As of the close, Boya Interactive rose 5.52%, Blue Harbor Interactive rose over 3%, and Xiong'an Technology rose over 2%. At the same time, cryptocurrency ETFs also collectively rose, with Huaxia Bitcoin ETF up over 5% and Boshi HashKey Bitcoin ETF up 4.72%.
In addition, the concept of cryptocurrency in the US stock market strengthened before the market opened, MicroStrategy、Bakkt、Bit Digital、 Canaan Technology has risen by over 5%.
Bitcoin hits new high again
On the morning of December 16th, the price of Bitcoin rose sharply, with an intraday increase of over 3%, reaching a high of $106569, once again setting a new historical high. Since Trump won the US presidential election on November 5th, Bitcoin has risen nearly 57%, during which US ETFs directly investing in Bitcoin have attracted a net inflow of $12.2 billion. Last week, Bitcoin rose for the seventh consecutive week, setting a record for the longest consecutive increase since 2021.
According to Coinpass data, within 24 hours, the number of people who liquidated in the cryptocurrency market exceeded 99000, with a liquidation amount of $337 million. Among them, the multi order liquidation amounted to 137 million US dollars, and the short order liquidation amounted to 200 million US dollars.
The new round of Bitcoin's rise is related to the latest remarks of US President elect Trump. Last week, Trump stated in a media interview that "we will do some great things in the field of cryptocurrency," pointing out that more and more countries are embracing cryptocurrency, but "we need to be leaders. When asked if he plans to establish a cryptocurrency reserve similar to an oil reserve, Trump said, "Yes, I think it will
Unlike the Biden administration's crackdown on digital assets, Trump is committed to creating a friendly regulatory agency for cryptocurrencies, and he has vowed to make the United States the "capital of cryptocurrencies". Recently, Trump appointed David Sachs, former Chief Operating Officer of PayPal, as the White House's head of artificial intelligence and cryptocurrency affairs, indicating his intention to promote the development of the cryptocurrency industry. Earlier this month, Trump also nominated conservative lawyer and cryptocurrency enthusiast Atkins to head the US Securities and Exchange Commission.
Other countries are also considering cryptocurrency strategic reserves. Earlier this month, Russian President Putin questioned the necessity of holding foreign currency reserves and hinted that Bitcoin may be a better option. Putin stated that the current US government's use of the US dollar for political purposes is weakening its role as a reserve currency in the global economy, forcing many countries to turn to alternative assets including cryptocurrencies. For example, Bitcoin. Who can ban it? No one, "Putin added.
Is it about to break through $110000?
IG analyst Tony Sycamore stated that the reason for the rise in Bitcoin prices is due to reports over the weekend that Trump will advance his Bitcoin strategic reserve plan. The next expected number for the market is $110000, "said Sycamore." Because we have received this news now, the pullback that many people were waiting for has not happened
Aya Kantorovich, co-founder of August, an institutional cryptocurrency platform, analyzed that market participants have high expectations for Trump's support for digital assets and his commitment to building the United States as the leading force in the global cryptocurrency industry. This optimism is directly reflected in the strong demand for cryptocurrency ETF products from institutional investors.
According to data provider CoinGecko, the total value of the cryptocurrency market has almost doubled so far this year, reaching a record high of over $3.8 trillion.
It is worth noting that last Friday, exchange operator Nasdaq announced that Bitcoin "heavyweight" MicroStrategy Inc. (MicroStrategy Investment) will join the Nasdaq 100 index. This software manufacturer has transformed into a leveraged bet on Bitcoin, which has shocked Wall Street. The company has been raising funds and investing billions of dollars in digital assets.
Sean McNulty, the head of trading at Arbelos Markets, a liquidity provider, said, "Since WeStrategy Investment is listed on NASDAQ, index funds may buy its stocks, which will help the company raise more equity to purchase more Bitcoin
Weiche Investment is an active investor in the world's largest cryptocurrency assets, with its stock price soaring more than five times this year and a market value of nearly $82.8 billion, making it the listed company with the largest holdings of cryptocurrencies.
In addition, some analysts pointed out that last week, the November Consumer Price Index (CPI) released by the United States met market expectations, and the Federal Reserve's interest rate cut in December is imminent, which is also one of the reasons for the rise in Bitcoin prices.
The overall seasonally adjusted CPI for November in the United States was 0.3% quarter on quarter (previously 0.2%) and 2.7% year-on-year (previously 2.6%); The core CPI was 0.3% month on month (previously 0.3%) and remained unchanged at 3.3% year-on-year, both in line with market expectations. Although core commodity prices may rebound due to the impact of the hurricane, rental price increases have slowed to their lowest level since 2021, easing market concerns about rising inflation.
China International Capital Corporation (CICC) pointed out that overall, the above inflation data has opened the door for the Federal Reserve to lower interest rates, but it is predicted that a "hawkish interest rate cut" may occur this week, and the Federal Reserve may reduce the guidance for interest rate cuts in the dot matrix. The predicted new dot plot will show a total of 2 interest rate cuts in 2025 (previously 4), and the federal funds rate may be lowered to a neutral level of 3.75% to 4% by the end of the second quarter of next year.
Jeffrey analyst Brad Bechtel said in a report, "The December rate cut is already a certainty, but the pace of rate cuts will definitely slow down since then." Additionally, Generali Asset Management expects that the Federal Reserve will emphasize that it will decide whether to further relax monetary policy based on future economic data, and this action will be cautious and slow.
According to a research report by CITIC Securities, overall, the marginal recovery of the US job market has led to further improvement in recruitment demand expectations for many industries in the US. However, the number of unemployed people has increased in November. Considering the controllable pressure of core inflation in the United States, it is expected that the Federal Reserve will cut interest rates by 25 basis points at its December meeting, and there may be a 50 basis point room for the Fed to cut interest rates next year.