After Benham's exit, cryptocurrency awaits Trump to select CFTC chairman - What are the risks?
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Trump's promise to make America the global cryptocurrency capital has attracted widespread attention, especially as he prepares to return to the White House. With the arrival of 2025, market volatility is becoming more pronounced, and investors are actively adjusting their strategies, anticipating how Trump will fulfill these promises. Here is a detailed analysis of the current situation:
Trump's cryptocurrency commitments and strategic actions
Trump's plan is not just verbal promises; he is actively taking steps to make it a reality. Trump has begun pushing for the implementation of an executive order for a strategic Bitcoin reserve, and he has also made clear movements regarding the leadership candidates for the Commodity Futures Trading Commission (CFTC) - he is narrowing down the candidate pool to select a committee leader who supports cryptocurrency. This series of measures indicates that Trump is taking strong steps to promote the development of the cryptocurrency market, especially regarding the regulation and reserve policy of Bitcoin.
The cryptocurrency market's reaction and volatility
The cryptocurrency market has exhibited extreme volatility. Recently, the price of Bitcoin (BTC) has fluctuated violently, dropping from $102,000 to $91,000, losing a significant amount of market value in just a few days. In the past 24 hours, $89.3 million worth of BTC long positions were liquidated, with the total amount evaporated from the market reaching $380.4 million. This sudden price drop came without any warning, catching investors off guard, many of whom are facing substantial losses. This uncertainty and extreme volatility have placed immense pressure on the cryptocurrency market and intensified investor concerns about Trump's cryptocurrency policy.
Challenges and decisions faced by Trump
Trump is facing challenges not only in the cryptocurrency market but also in dealing with the overall state of the US economy, especially under pressure regarding national debt and fiscal policy. Trump's tax cuts and spending reduction policies may lead to a government funding shortfall, which could affect debt management. In the coming days, $7.6 trillion in debt is set to mature, which may force Trump to reconsider raising borrowing costs, potentially impacting the cryptocurrency market anew.
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