Donald Trump's shift in attitude towards Bitcoin is noteworthy. Previously labeling Bitcoin as a "fraud" due to its volatility and perceived threat to the U.S. dollar, Trump has taken a surprising turn by adopting a crypto-friendly stance in his 2024 presidential campaign. Recently, he described Bitcoin as "an extraordinary technology" and announced that he has started engaging in Bitcoin transactions.
Embracing Cryptocurrency and Market Reactions
This change is not merely rhetorical. In 2022, Trump made his first move into digital assets by launching an NFT collection. Additionally, public records indicate that Trump holds a significant amount of Bitcoin. Market experts suggest that this support could signal an upward movement in Bitcoin prices. Some speculate that if Trump is re-elected, Bitcoin might reach record highs.
Failed Crypto Project: World Liberty Financial Token
Trump also attempted to launch his own cryptocurrency. However, the World Liberty Financial (WLFI) token project did not succeed. The token was only available to accredited U.S. investors and could not be traded freely, deterring potential buyers. Moreover, the project's website experienced technical issues, leading to sales falling short of expectations.
Surge in Crypto ETFs
Meanwhile, interest in cryptocurrency ETFs has reached record levels. Major assets such as Bitcoin, Solana, and Ethereum saw an 11% increase within just a week. Over $600 million was invested in crypto ETFs during this period, with total managed assets exceeding $60 billion. BlackRock’s Bitcoin ETF has garnered strong demand, showing notable growth.
Additionally, the Australian firm Monochrome introduced a new ETF that provides cash-settled and physically-backed Ethereum transactions. These developments illustrate a greater integration of crypto assets with traditional financial products, allowing investors to engage with cryptocurrencies through more familiar platforms.
Current Status of Bitcoin
Currently, Bitcoin is trading above $67,000. Technical analysts suggest a potential upward movement is on the horizon. Market bulls are building momentum, and some indicators suggest an imminent upward movement. If the support level of $62,500 is broken and the resistance level of $68,000 is surpassed, Bitcoin could potentially test $70,000.
The 14-day RSI data indicates that Bitcoin could experience upward movement. Factors such as increased institutional buying and Bitcoin's resurgence as a hedge against inflation may support price increases. If Bitcoin surpasses $68,000, a stronger upward trend may occur.
This volatility in the cryptocurrency market reveals that digital assets are attracting attention not only from investors but also from politicians and large institutions. Continued interest could lead to broader acceptance of cryptocurrencies in the financial world.
