Bitcoin prices have intensified fluctuations, rebounding from the largest two-day decline since the release of the results of the USA presidential election, reflecting a change in the evaluation of the impact of the elected President Trump's policy agenda.
Bitcoin prices have intensified fluctuations, rebounding from the largest two-day decline since the release of the results of the USA presidential election, reflecting a change in the evaluation of the impact of the elected President Trump's policy agenda. Data shows that Bitcoin fell by nearly 3% last Saturday and Sunday. As of the time of writing, it has risen to a level just slightly below $0.092 million, but still below the historical high of about $0.093 million set last week. $Bitcoin (BTC.CC)$ It has risen to a level just slightly below $0.092 million, but still lower than the approximately $0.093 million historical high reached last week.
During the campaign, Trump made various commitments to support cryptos, including establishing a usa bitcoin reserve and creating a crypto-friendly regulatory framework. However, the feasibility and timeline for these commitments remain uncertain. IG Australia Pty market analyst Tony Sycamore noted that since usa election day on November 5, bitcoin has seen a record increase, but has since become "overheated", and "a lot of good news has already been reflected in the price".
Although Trump's business-friendly stance has energized both usa stock market and crypto investors, the risks presented by trade tariffs and potential fiscal budget deficits due to tax cuts are undermining some of the optimism. Investors are lowering their expectations for the Federal Reserve to cut interest rates during robust usa economic growth, which could be an obstacle to the rise of cryptos, as liquidity conditions may affect speculative demand for cryptos.
Led by Nikolaos Panigirtzoglou, jpmorgan analysts stated that under Trump's administration, the crypto position may soon gain approval, thus pushing regulation toward a more cooperative approach. The analysts mentioned that banks will have greater leeway to participate in investing in cryptos, and exchange-traded funds (ETFs) investing in other cryptos (not just bitcoin and ethereum) are more likely to get approval. However, the analysts also added that establishing a usa bitcoin reserve is a "low probability event."
Editor/rice