Bitcoin posted its biggest gain since the new year, breaking through the $100,000 mark again. The latest U.S. inflation data has reignited bets on further interest rate cuts from the Federal Reserve, boosting global markets.
Now, the focus turns to the policy offensive that President-elect Trump is expected to take after his inauguration on January 20, which may include measures to support the cryptocurrency industry. Speculators are weighing the risks of inflationary tariffs and immigration policies against Trump's promise to make the United States a global hub for digital assets, and he also supports the idea of a national Bitcoin reserve.
A key question is whether Bitcoin will encounter "sell the news" profit-taking when Trump actually takes power after a 50% rally following his November 5 victory.
"Our understanding is that Trump is preparing to issue a large number of executive orders shortly after his inauguration next week, some of which are particularly favorable to digital assets, and we may see some selling of the news in the short term, but those who do so are missing the forest for the trees," said Cosmo Jiang, portfolio manager at Pantera Capital. (Bloomberg)