Current Market Dynamics:
Trump's stance on cryptocurrency during his campaign is seen as positive by the market, as he has previously indicated that he would promote the legalization of cryptocurrencies and relax regulations. The market anticipates that he may implement these policies after taking office, leading to an increase in demand for Bitcoin among investors. This expectation can drive up the price of Bitcoin.
Institutional investors continue to buy Bitcoin, which is often viewed as a long-term bullish signal. Institutional investors like BlackRock and MicroStrategy are increasing their Bitcoin holdings, possibly because they believe in the long-term value growth potential of Bitcoin as an asset. This can be interpreted as an expectation of future price increases.
Market volatility may indicate adjustments in the short term, as the price of Bitcoin, after experiencing significant increases, may undergo a pullback or consolidation period to digest previous gains. Some analysts believe that the sharp rise in prices may lead to excessive optimism, which in turn needs to be corrected through a pullback to restore market balance.
On the other hand, expectations of Trump's policies, the increase in institutional investments, and the market's recognition of Bitcoin as digital gold may signal the beginning of a new bull market. Historically, every time the market's recognition of Bitcoin increases, it is accompanied by a significant rise in price.
In the short term: The market may continue to experience volatility as it awaits the specific implementation of Trump's policies. Prices may oscillate at high levels or experience slight pullbacks, but if the policies are as favorable as expected, the price of Bitcoin may continue to rise.
In the long term: Bitcoin may continue its role as a store of value and potentially reach new historical highs. Especially if more countries or institutions incorporate Bitcoin into their reserve assets, there may be greater upward potential for the price.
