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Trump's 'Inducement' Strategy: The Fiscal Dilemma Behind Bitcoin
I. Trump's Cryptocurrency Strategic Reserve Plan On Sunday, Trump made a striking announcement on social media: the U.S. will create a cryptocurrency strategic reserve, which will include Bitcoin, Ethereum, Ripple, Solana, and Cardano. This news immediately triggered a strong market reaction, with cryptocurrency prices soaring, and Bitcoin briefly reaching $95,000. However, there are many thought-provoking questions hidden behind this plan. II. Fiscal Predicament of the Strategic Reserve A strategic reserve, by definition, is a reserve system established to stabilize market supply and demand under specific circumstances. The United States' Strategic Petroleum Reserve (SPR) is a typical example, effectively stabilizing energy prices by adjusting the balance of supply and demand in the energy market. However, when cryptocurrencies are included in the category of strategic reserves, the market seems to overlook a key question: does the U.S. government have sufficient financial capacity to support this plan?
Eat well, sleep soundly, save oil, wait for the right moment, steady ourselves, we can win
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Yesterday during the day, it kept fluctuating downwards. Some keen observers noted that everyone needed to wait until 10:30 PM after the US stock market opened to take action. Right after the US stock market opened, it began to decline.
The trend shows that Bitcoin is fluctuating around the 89,000 mark, with support below at around 87,800. During this market repair process, there remains a significant possibility of further probing downwards in the early morning or dawn, so patience is still needed.
Ethereum is similar. After reaching resistance near 2,550, the 4-hour chart looks like an old lady going down the stairs, steadily declining. It has now broken below the support near 2,280, with support below at around 2,080.
With various data and meetings this week, along with the factor of tariffs, it is bound to be extraordinary. Currently, we hold more oil than chips, allowing for many choices in such extreme market conditions.
The launch of STAR10 early yesterday created a celebrity effect. Currently, the stronger cryptocurrencies are in the fan token sector. Due to the instability in Bitcoin's market, it is also advised to observe, avoid rash actions, and patiently wait for opportunities.
Last week, Bitcoin gave long positions a harsh lesson. Following the principle of equal opportunity, today's explosive rise will also leave short positions with vivid memories. Respecting the market is never just a slogan; it must be put into action.
The trend shows that after Bitcoin broke through the resistance around 93,500, it surged, but after reaching 95,000, it began to pull back. The weekly decline was just recovered in two hours, with support around 91,000. It is also crucial that Bitcoin stabilizes at 92,000 at 8 AM; this is the support on the weekly chart.
Ethereum's strong surge is extremely disorienting. It wasn't long ago that Ethereum surged with such strength. The resistance is around 2,680, and support is around 2,380. If we can stabilize the altcoins, everyone will be happy. However, once a correction occurs, it will bring the altcoins into a deep abyss.
Taking advantage of this wave of rise, we have also reduced part of our positions. Considering the factors of inevitable declines during meetings, combined with the unemployment rate and the release of non-farm payrolls, these two major uncertainties directly affect market trends. Passing through this time node steadily is a more suitable approach at present.
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What impact does the theft of $1.4 billion in Ethereum (ETH) from Bybit exchange have on the cryptocurrency market?
• Price drop: After the incident, the price of Ethereum plummeted by about 5% in a short period of time, and Bitcoin also fell by more than 3%. This price fluctuation reflects the market's negative sentiment towards the security incident. • Crisis of trust: As the largest hacker attack in the industry’s history, it has exacerbated users’ concerns about the security of centralized exchanges (CEX), and may cause some users to transfer funds to decentralized exchanges (DEX) or choose safer asset custody solutions. • Market confidence is dampened: Such a large-scale theft has raised market doubts about the security of the entire cryptocurrency industry. Investor confidence has been hit, which may lead to a decline in market trading activity in the short term.
1️⃣ Title – The latest film centered on Ethereum is "Vitalik: An Ethereum Story." 🎥 2️⃣ Plot – This documentary provides an intimate look at Vitalik Buterin and the Ethereum developer community. 🌍 3️⃣ Premiere Date – The film premiered on September 18, 2024, and has a runtime of 86 minutes. ⏳ 4️⃣ On-Chain Release – It became available for on-chain streaming on September 20, 2024. 📡 5️⃣ Theatrical & Streaming Release – A broader theatrical release happened in fall 2024, with plans for traditional streaming in winter 2024/2025. 🍿
🚀 Ethereum’s journey hits the big screen! 🎬🔥
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If you fly with the phoenix, you must be a beautiful bird. If you walk with tigers and wolves, you must be a fierce beast.
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#sol sol's recent performance is rubbish! Especially today, Liege was long on sol, but sol is really a hopeless person. Based on the principle of joining if you can't beat them, he decisively went short and it was smooth! So the weak will always be weak, and the strong will always be strong. This is absolutely a golden saying in the currency circle. The big level restricts the small level. When the big level goes bad, you should not have any illusions about it! Either run away or wait and watch the sickle fall!
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Let's talk about Ethereum, which everyone is paying attention to. It stopped falling around 2650 at 2:30 PM, then began to pull back. At 4:45 PM, it continued to dip, forming a double bottom pattern before rising all the way. The current resistance level is around 2703. If it doesn't break through and stabilize at this level in the short term, it won't be able to go up further, so let's focus on this level for now.
A day of activities has ended, returning to the hotel to freshen up, lying in bed to reflect on today's gains, I have made quite a few friends in the industry, this circle is becoming increasingly younger, it's not enough to just get by, I can't lose to the younger generation, the night view of Hong Kong is still quite nice, taking a quick glance at the night scenery, tomorrow will be better...
📈 Quick Market Summary The crypto market is experiencing a notable uptick with a total market cap of approximately $3.37 trillion, reflecting a slight increase of 0.01%. Bitcoin dominance remains stable at 56.7%, while Ethereum's dominance has risen to 9.93%. The overall trading volume has surged by 31.76% in the last 24 hours, indicating increased market activity.
📰 News Impact - Digital asset investment products saw significant outflows totaling $415 million. - Standard Chartered and partners are launching an HKD-backed stablecoin. - Tether is in talks with U.S. lawmakers regarding stablecoin legislation. - SEC indicates a potential resolution in the Coinbase lawsuit. - Gamestop is considering investments in Bitcoin and other cryptocurrencies.
Predictions Given the current market dynamics and increased trading volume, we anticipate Bitcoin may test resistance levels around $100,000 in the near term, while Ethereum could aim for $3,000. The overall market sentiment appears bullish, driven by institutional interest and regulatory developments.
⚠️ Risk Radar Immediate technical warnings are noted in the NFT sector, which has shown volatility. Regulatory risks remain high, particularly concerning stablecoin legislation.
🎯 Trading Strategy • Swing: Focus on GameFi and DeFi sectors for short-term gains. • Rotation: Consider reallocating into Layer1 and Layer2 projects. • Risk: Maintain caution with highly volatile tokens, especially those flagged as honeypots.
💡 Expert Take The market exhibits bullish momentum with potential for further gains, but caution is advised due to regulatory uncertainties. 🐂