On Monday (September 2), Bitcoin plummeted to $57,128 in the early morning, and the classic September decline hit. Bitcoin traders made a profit of $4.251 billion in August, which intensified the selling pressure of Bitcoin. Former US President and Republican presidential candidate Donald Trump announced that he would launch a decentralized finance (DeFi) platform. The chances of winning the US November election changed suddenly, and the bets on Vice President Kamala Harris began to fall.
With Trump now advocating for decentralized financial platforms and promising to make the U.S. the “crypto capital” of the world, all eyes are on the growing digital asset efforts of his family and associates, Bloomberg reports.
In recent weeks, Trump and his two sons have been promoting World Liberty Financial (WLFI), a DeFi project that aims to eliminate intermediaries such as banks through the use of software-driven applications.
Trump's two sons, Eric Trump and Donald Trump Jr., began promoting the DeFiant Ones Telegram channel for World Liberty Financial in August.
Trump just launched his fourth series of non-fungible tokens (NFTs), which represent unique ownership of an asset, such as images depicting him riding a motorcycle or fighting a boxer.
Trump's wife, Melania Trump, will be able to purchase her upcoming memoir as a digital collectible, according to her website.
Despite Trump stating five years ago that he was “not a fan of Bitcoin and other cryptocurrencies,” his family and associates have apparently embraced cryptocurrencies wholeheartedly and have made millions from them.
In recent years, Trump has been making money by lending his name or likeness to crypto-related products, just as he has done with everything from real estate to steaks to menswear throughout his life.
Trump's CIC Digital LLC, which earned $7.2 million by licensing his image on NFTs, holds a crypto wallet with at least $1 million in ether, according to disclosures in 2024. In August, 1,000 pairs of Trump-branded "crypto sneakers" began pre-orders for $499 through CIC Ventures LLC. According to Florida registration documents, CIC Ventures is connected to Trump's lawyer John Marion IV. Marion represents Trump in Florida and believes the former president can continue to live in Mar-a-Lago, according to NPR.
Trump is working on NFT collectibles with Bill Zanker, a friend of Trump’s for 30 years who co-authored a book with him called “Think Big and Kick” Ass", published in 2007. Zanke, who has booked Trump as a speaker through his company Leaning Annex, suggested to the former president about two years ago that he should start selling NFTs.
Melania has launched multiple NFT series in the past, and even sold a gold necklace with an associated NFT for Mother’s Day on the Solana blockchain, a blue-chip U.S. public chain. The extent of the success of these series is unclear, and the source of funds for the former first lady’s first NFT auction appears to have come from the project’s founder himself.
Cantor Fitzgerald LP CEO Howard Lutnick is co-chairman of Trump’s transition team and one of Wall Street’s most vocal supporters of cryptocurrencies. Cantor Fitzgerald manages reserves for Tether Holdings, best known for its $118 billion USDT stablecoin, the most traded digital asset.
Republican vice presidential candidate J.D. Vance was involved in cryptocurrency investments before joining the campaign. Documents obtained by CNN show that the Ohio senator disclosed that he owns more than $250,000 worth of Bitcoin. He has also become a cryptocurrency advocate on Capitol Hill and is drafting a bill to revise digital asset regulations, according to Politico.
According to Polymarket, a large cryptocurrency betting platform, Harris's chances of winning fell back to 47% in November, while Trump's chances rose to 51%, and the gap between the two began to widen.
Bitcoin technical analysis: September classic drop
FXStreet analyst Ekta Mourya said that Bitcoin on-chain indicators support price increases, but historically, Bitcoin has brought negative returns to traders in September. The current cycle is considered different from the past, with the approval of the Bitcoin spot ETF this year and the increasing demand for the asset from institutions.
If institutional capital continues to flow into Bitcoin spot ETFs and drives sustained demand for cryptocurrencies, Bitcoin prices could remain above the critical support level of $60,000.
Three on-chain indicators support Bitcoin's rise, with Santiment data showing that cryptocurrency traders will realize $4.251 billion in gains in August 2024. This is reflected in a large positive surge in the Bitcoin network's realized profit/loss (NPL) indicator.
While massive profit-taking could depress Bitcoin prices, the whale trading indicator shows that large transfers worth $100,000 or more have fallen to their lowest level in nearly four years.
Taken together, these two indicators suggest that Bitcoin has the potential to rise, and whales have not yet realized large-scale profits and may continue to hold their Bitcoin.
According to data from Santiment, the supply of Bitcoin on exchanges has fallen to its lowest level since December 2018. The reduction in supply on exchanges means that there are fewer Bitcoins in exchange wallets, and Bitcoin still has room to rise.
Typically, a drop in supply is good for asset prices.
The market value to realized value (MVRV) metric, which is used to determine whether an asset is undervalued or overvalued over a given time frame, shows that Bitcoin is undervalued on both the seven-day and 30-day time frames.
The weekly Bitcoin chart shows that Bitcoin may have swept liquidity at $49,000, a key support level for the asset, before starting to rebound. This marks a 15.58% drop in the price of Bitcoin.
The moving average convergence divergence (MACD) momentum indicator shows red histogram bars below the neutral line, which means there is potential negative momentum for Bitcoin price.
A potential weekly chart close above $60,000 would upend this argument and push Bitcoin towards $65,000, the next key resistance level for the asset.
