Bitcoin hit record highs this week, reaching a peak of $93,265, and then the price of the currency showed a healthy correction, continuing to build support in the process. The "Trump Trade" is still the key. Although the "hawkish" signal from Federal Reserve Chairman Powell that he was not in a hurry to cut interest rates was suppressed over the weekend, Trump's major announcement this week that Musk will lead the newly established Department of Government Efficiency (D.O.G.E.) and the Bitcoin Strategic Reserve Act appeared in the U.S. Congress boosted the Bitcoin and meme coin markets. As the price of the currency soared, many whales woke up to dump their goods, and the legendary figure Su Xing, who "mysteriously disappeared" in China, cleared his positions.
Trump urgently announces Musk joins cabinet to lead "Government Efficiency Department"
President-elect Trump announced on Tuesday that Musk and Ramaswamy will lead a new Ministry of Government Efficiency whose mission will be to "dismantle the government bureaucracy, cut redundant regulations, slash wasteful spending and reorganize federal agencies," Bloomberg reported.
The English abbreviation of the U.S. government's Department of Efficiency is D.O.G.E, which is similar to Dogecoin (DOGE), and Musk is regarded as the "father of Dogecoin." After the news came out, the price of Dogecoin soared, reaching a high of $0.4384 during the week.
“All actions of the Government Efficiency Unit will be posted online for maximum transparency,” Musk said, according to Watcher.Guru.
Musk also released the logo of the U.S. government's efficiency department, which has a Shiba Inu waving an American flag and the full name and abbreviation of the Department of Government Efficiency. This further boosted the rise of meme coins such as Dogecoin and Shiba Inu Coin.
Trump's newly established government efficiency department said it plans to close the FBI and fire 1.5 million federal government officials in an effort to cut unnecessary costs.
Musk released data showing that the US government wasted $900 billion in taxes in 2023. The post he cited also pointed out that remember, over the past eight years, the US government has spent an average of $2 trillion more than it earns each year. Any company that operates this way will fail, and anyone who lives this way will go bankrupt. There is no reason to continue doing this.
He previously predicted that the U.S. federal budget could be cut by at least $2 trillion, but this would be more than Congress spends each year on government agency operations, including defense. This could require significant cuts to popular welfare programs such as Social Security, Medicare, Medicaid and veterans' benefits.
Despite the name, the "Department of Government Efficiency" is not a government agency, and it is unclear how the group will operate, though it may be subject to federal advisory committee laws, which govern how outside organizations that advise the government operate and their accountability to the public, AP News reported.
Trump's trading signal: "Bitcoin strategic reserve" bill appears in Congress
Fox News reporter Eleanor Terrett tweeted: “EXCLUSIVE NEWS, on Thursday the Pennsylvania House of Representatives introduced legislation that would allow the state to hold Bitcoin on its balance sheet as a reserve asset, in a move that would advance a broader movement to recognize Bitcoin as a store of value.”
Then, Fox Business reported that the prospect of Trump's return to the White House prompted Pennsylvania lawmakers to introduce legislation that would allow the state's treasury to hold the world's largest digital asset, Bitcoin, on its balance sheet. The legislation came as Republican Senator Cynthia Lummis of Wyoming, who supports cryptocurrency, said she hopes to push her own Bitcoin Reserve bill across the country within the first 100 days of President Trump's term.
The new bill, called the Pennsylvania Bitcoin Strategic Reserve Act, was introduced in the Pennsylvania House of Representatives on Thursday and is the first of its kind. It would allow the state Treasury Department to allocate 10% of its approximately $7 billion in state funds to Bitcoin to help fight inflation and diversify its investments beyond traditional assets such as bonds and cash reserves.
“The (Pennsylvania Bitcoin Strategic Reserve Act) is a visionary step to secure our state’s financial future,” said Rep. Mike Cabell, R-Pa., the bill’s sponsor. “By adding Bitcoin to our reserves, we can not only protect Pennsylvania from the ongoing effects of inflation, but also position our state as a leader in financial resilience and innovation.”
Big Whale Moves: China's "Mysteriously Missing" Legendary Figure Revives and Sells Goods
On Tuesday, Chinese chain analyst Ai Yi revealed that the address of "China's No. 1 in the cryptocurrency circle" who had been dormant for four years, Fried Cat, transferred all 206.34 bitcoins worth $18.12 million. According to monitoring, Fried Cat's address 1BnkE...yxFey transferred 206.34 bitcoins worth $18.12 million to 15286...bjYma at noon on Tuesday Beijing time; currently, all the bitcoins in this address have been transferred to empty.
According to market analysis, in 2012, when Bitcoin was still unknown in China, FriedCat had already pioneered in the field of virtual currency. In 2013, he took a roller coaster ride with his faith and strength, bringing himself and many others huge wealth and passionate shouts and exclamations. But at the end of 2014, he disappeared strangely without leaving a single word. His disappearance was full of doubts, and was called "one of the top ten unsolved mysteries in the cryptocurrency circle" by people in the circle.
At the end of 2014, FriedCat suddenly lost contact. No one, including his family and team members, could get in touch with him. FriedCat's family reported the case to the police on January 25, 2015, but there was no news for several years. This day was designated as the official date of FriedCat's disappearance. On the bitcointalk forum, FriedCat's last login was at 4:03 pm on January 25, 2015, Beijing time.
Bitcoin Technical Analysis
Economies.com said Bitcoin successfully hit the negative target of $87,025 suggested in the technical update, which represents the 23.6% Fibonacci correction level of the rise from $66,824.60 to $93,261.00, noting that the price found solid support there while stochastically reaching the oversold region.
Therefore, these factors encourage us to predict an upward move in the price in the coming period and once again move towards resuming the primary bullish trend towards a new positive target of $94,000 area, noting that a breakout of $87,025 will push the price towards more bearish corrections with the next target of $83,165.
“Bitcoin’s expected trading range on Friday is between $86,000 support and $93,000 resistance.”
