“The quality of your decision depends on the information you have and your ability to process it. -- Reda Leo, founder of Bridgewater Associates (Principle)”
U.S. Senate officials have publicly stated that they will establish a strategic reserve of Bitcoin. The plan is to accumulate 200,000 Bitcoins per year over five years, with the goal of holding 1 million Bitcoins, about 5% of the total supply. This measure will not be implemented until after Trump takes office, which means that governments may take action in advance, a dynamic that is eye-catching. The government's plan to adopt Bitcoin is about to take shape.
Additionally, there is speculation as to whether Trump will follow through on his promise to remove SEC Chairman Gary Gensler. If Gensler resigns, Trump may appoint a new SEC chairman who is more supportive of the cryptocurrency market.
Trump's victory in the election had an unparalleled positive impact on financial markets, with the S&P 500 hitting new highs and small-cap stocks also rising sharply.
Meanwhile, the cryptocurrency market surged across the board, with gains reaching double digits. The early morning FOMC meeting will be a critical moment. I suspect Bitcoin may return to its previous all-time high for a long retest and provide effective support, which may be more favorable for altcoins.
Coinbase is one of the most important digital currency exchanges. Its stock price rose 31.11% on November 6 to close at $254.30, and its year-to-date increase reached 62.1%. The main factors driving this rise include the optimism brought about by Trump's victory and the strong market performance of Bitcoin.
Net inflows into Bitcoin spot ETFs increased significantly, with net inflows reaching $621 million on November 6, the day Trump won. This shows that institutional investors are increasingly confident in Bitcoin’s future.
But it is worth noting that the Bitcoin spot ETF of Big Brother BlackRock has seen a slow outflow of funds!
As Trump's victory will promote the popularity of Bitcoin in the United States, Wall Street's next move has attracted attention. At present, the Ethereum spot ETF has been launched for some time, and Wall Street financial institutions seem to have entered.
Note: All content represents the author's personal views only, is not investment advice, and should not be construed in any way as tax, accounting, legal, business, financial or regulatory advice. Before making any investment decision, you should seek independent legal and financial advice, including advice on tax consequences.
