Bitcoin Surges Past $95,000: The Trump Effect and US Reserve Asset Prospects

Bitcoin Surges Past $95,000: The Trump Effect and US Reserve Asset ProspectsOn November 21st, Bitcoin's price soared, briefly surpassing the historic high of $95,000 per coin before retracting slightly. At press time, it stabilized around $94,874, a 3

Bitcoin Surges Past $95,000: The Trump Effect and US Reserve Asset Prospects

On November 21st, Bitcoin's price soared, briefly surpassing the historic high of $95,000 per coin before retracting slightly. At press time, it stabilized around $94,874, a 3.32% increase from the previous day. This dramatic surge has captured widespread market attention, attributable to a confluence of technical factors, macroeconomic conditions, and political influences. Particularly noteworthy is the close correlation between this price spike and the potential policy support from former US President Donald Trump.

Bitcoin's New High, While Most Cryptocurrencies Experience a Pullback

In stark contrast to Bitcoin's robust surge, most other cryptocurrencies experienced price declines on the same day. Ethereum (ETH) fell 1.16%, Dogecoin (DOGE) dropped 2.11%, and other major cryptocurrencies also underperformed. SUI declined by 8.14% to $3.4653, SOL fell 0.76% to $230.99, and BNB decreased by 2.64% to $590.71.

Coinglass's latest data reveals significant liquidations in the cryptocurrency market over the past 24 hours, affecting over 150,000 users with total losses exceeding $395 million. Long positions accounted for $290 million of these liquidations, while short positions totaled $110 million. This highlights the continued volatility and underscores the need for cautious investor behavior.

Hong Kong Crypto Stocks Boosted by Bitcoin's Rise

Fueled by the positive news surrounding Bitcoin's price increase, Hong Kong-listed cryptocurrency-related stocks performed strongly on November 21st. Bo Ya Interactive, which claims to hold 2,641 Bitcoins, saw particularly significant gains, closing at HK$4.13 per share, a rise of over 11%. This further illustrates the impact of Bitcoin's price fluctuations on related stock markets.

The Trump Effect: Potential Policy Support Fuels Bitcoin's Ascent

Bitcoin's recent price surge is closely linked to statements and potential policies from former US President Trump and his team. During his campaign, Trump expressed a positive view towards Bitcoin and cryptocurrencies, praising their innovative spirit and decentralized nature as aligning with American core values. He even pledged to support cryptocurrency development through policy measures if re-elected, aiming to establish US leadership in the global Bitcoin and blockchain technology landscape.

Foreign media reports indicate that the Trump team is engaging with digital asset industry professionals, discussing the creation of a new White House position dedicated to cryptocurrency policy and reviewing potential candidates. The establishment of such a role, unprecedented in White House history, would signal a significant shift in the US government's attitude towards cryptocurrencies and could offer long-term benefits for Bitcoin.

Cryptocurrency industry advocates are actively promoting this position, hoping to establish more direct communication channels with the Trump team. While the Trump team hasn't yet responded, the news itself has already significantly impacted the market.

Since Trump's declared victory, Bitcoin has embarked on an accelerated upward trajectory. From November 6th, its price climbed from approximately $69,000, repeatedly setting new highs. To date, the increase exceeds 30%, with a year-to-date gain surpassing 120%.

Bitcoin's Future Trajectory: Anticipation Driven by US Reserve Asset Prospects

Jeffrey Ding, Chief Analyst at HashKey Group, believes that Bitcoin still has room for further growth after breaking the $90,000 mark. He even boldly predicts that the promise of "Bitcoin becoming a US reserve asset" will ultimately materialize. Achieving this would unlock new upward potential for the Bitcoin market.

Ding also points out that existing US Bitcoin reserves are unlikely to flood the market for sale, mitigating potential bearish pressure. Furthermore, if Bitcoin were to become a US reserve asset, the government might purchase Bitcoin, further driving up the price.

However, it's crucial to acknowledge the risks inherent in Ding's prediction. Bitcoin's price remains highly volatile, subject to numerous factors including regulatory policies, market sentiment, and technological advancements. Investors should therefore approach such predictions cautiously and make investment decisions based on their risk tolerance.

Conclusion: A Bitcoin Bull Market Driven by Multiple Factors

In summary, Bitcoin's surpassing of the $95,000 mark isn't attributable to a single factor but rather a convergence of multiple influences. The Trump effect and its potential policy support, market expectations regarding the US economic outlook, and technical factors have all contributed to the sustained price increase.

Nevertheless, market risks persist. Investors need to closely monitor macroeconomic conditions, policy changes, and market sentiment, investing rationally and cautiously. The cryptocurrency market is highly volatile, presenting both high risks and high rewards. Investment decisions should always be based on individual risk tolerance and financial circumstances; avoid blindly following trends.

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