On Thursday (August 29), Bitcoin rebounded from the overnight pin of $57,860, and bulls held on to $59,000. The family of former US President and Republican presidential candidate Donald Trump announced the arrival of a new era of finance and officially launched the cryptocurrency project WLFI. He also released the fourth batch of NFT trading card series, and the high-end cards have the ability to have dinner together.
Eric Trump, Trump's son and executive vice president of the Trump Organization, announced on Twitter the official launch of the cryptocurrency project WLFI, and tagged the official Twitter account @worldlibertyfi. He declared that "a new era of finance has arrived."
WLFI stands for World Liberty Financial. Under its official Twitter account, the team pinned a post that said "It's time to make finance great again," and attached a picture of Trump raising his fist during the failed assassination attempt.
"More than half of the people in this country (the United States) currently don't have access to banking services," Eric told the New York Post in an interview earlier in August.
The banking and finance sectors have become politicized in recent years, most notably with Canadian truckers protesting COVID-19 vaccine mandates, which led to Canadian Prime Minister Justin Trudeau freezing the bank accounts of protesters. In addition, British politician Nigel Farage claimed that his bank account was closed in part because his political views were considered "incompatible" with traditional financial banks.
“These banks and the elites who run them wanted absolute control, but that control ends now,” Donald Trump Jr. posted in a Telegram group. “We are putting the power back into your hands and making finance great again. This new decentralized finance (DeFi) platform will cut out corrupt, expensive and inefficient middlemen.”
He stressed: "No longer will bureaucrats decide your fate. It's time to modernize an unfair and outdated system so that everyone has the same opportunities that the elites have been hoarding. Join us and let's make finance work for the people again."
Forbes reported that Trump’s crypto project will be a crypto platform similar to cryptocurrency exchanges such as Coinbase or Binance, and may also serve as a replacement for bank accounts.
Trump still has a 50% lead over Vice President and Democratic presidential candidate Kamala Harris in November's election to 49%, according to Polymarket, a major cryptocurrency betting platform.
Trump also released the fourth batch of non-fungible token (NFT) trading card series. A high-end card priced at $24,750 comes with multiple empowerments such as dinner. Although this series of NFTs will bring considerable benefits to Trump, it has nothing to do with his political campaign funds, but goes into his personal account.
Bitcoin Technical Analysis
As a number of variables come together to cause cryptocurrency prices to fall, Bitcoin prices have seen a notable drop over the past few days, falling from nearly $65,000 to less than $58,000 before rebounding.
Julio Moreno, head of research at CryptoQuant, said Bitcoin may have changed course and started to move lower after reaching its highest price in about three weeks on August 25 as it encountered significant technical resistance near the $64,000 level.
“The sell-off was likely triggered by technical factors as prices encountered resistance around $64,000, which is the price realized by on-chain traders and a key technical level,” he said.
The following chart shows the prices realized on-chain and the corresponding profits or losses:
According to additional data from CryptoQuant, a large amount of cryptocurrency flowed into spot exchanges on August 26, when the Bitcoin price was already moving lower.
Moreno noted that digital currencies once again surged into these markets on Aug. 27, indicating selling pressure.
The chart below illustrates these trends:
He claimed that these developments helped accelerate Bitcoin’s downward trend.
Bitcoin’s decline triggered a long squeeze, meaning many traders had to liquidate their long positions as the cryptocurrency fell in value.
Steven Lubka, head of Swan Private at Swan Bitcoin, pointed out that this was the main reason for the digital asset’s sharp drop over the past few days, clarifying this via email.
The chart below shows the dramatic increase in liquidations on August 27:
Analysts point out that another major factor influencing Bitcoin's recent price action is the market's reaction to the latest financial results released by chipmaker NVIDIA.
Psalion Managing Partner Tim Enneking commented on the results and their implications for risk assets broadly.
“As for today’s specific move, it has to do with the fiat markets and the extraordinary expectations for Nvidia’s revenue and earnings, which in all cases were above expectations but not outside the range of various analysts’ expectations,” he said in an email.
“As a result, the stock is down 8% in after-hours trading and has been a drag on every risk market over the past 24 hours or so on ‘concerns’ about these results,” Enneking added.
