Is BTC trapped in a hope trap? Here are the things you should know!
Since the beginning of this quarter, its price has skyrocketed like a rocket, and with the results of the U.S. election, it was further fueled, directly breaking through the $108,000 ceiling, creating a new record!
However, as soon as the Federal Reserve Chairman started talking about Bitcoin reserves, the price plummeted like a popped bubble, quickly falling below the $100,000 mark. This tells us that the BTC price may rise due to everyone's expectations, but once reality sets in, it might 'cry,' and the price will be affected.
So, the question arises: is this wave of increase since November just a beautiful dream for everyone? If Trump comes back to power, will Bitcoin be sold off to 'the ends of the earth'?
In fact, after Trump's victory, he did mention establishing Bitcoin reserves, and this move excited the market, causing Bitcoin prices to soar. However, Federal Reserve Chairman Jerome Powell came out and said 'no,' stating that the Federal Reserve has no power or intention to hold Bitcoin. With this statement, the BTC price immediately 'cried,' sharply declining and raising concerns about its performance after the new president takes office in 2025.
Will BTC prices crash next? This is indeed a heart-wrenching question. In the last 24 hours, more than $400 million in contracts have been liquidated, with longs suffering heavy losses, reaching $335 million, while shorts fared slightly better but still lost nearly $83 million. Everyone is waiting for a significant move in prices during Trump's inauguration!
But these are just speculations, as there is still a month to go, and no one knows the real impact. However, MicroStrategy's continuously increasing BTC holdings and the rising trading volume of spot ETFs have given everyone some hope. After all, the whole world is cutting interest rates, and cheap capital is continuously flowing into this field!
So, I think the market is on the edge of a super altcoin season, and who knows when an explosive rebound might happen!
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