Since November 5, Bitcoin has experienced an unprecedented bull market, rising 10.29% on November 11, breaking $81,000, and the momentum shows no signs of stopping, with breaking the $100,000 mark appearing to be only a matter of time. Some 'radical' overseas institutions have set target prices for Bitcoin as high as $125,000. The head of asset research at Standard Chartered publicly stated that Bitcoin could reach $200,000 by the end of 2025. The entire cryptocurrency space is filled with waves of wealth freedom.

'Never sell your Bitcoin'

The sudden bull market in Bitcoin is primarily due to Trump's recent successful second presidential campaign.

On July 28 this year, Trump attended the Bitcoin 2024 conference held in Nashville, Tennessee, and delivered a keynote speech.

'For a long time, our government has been violating a fundamental rule that every Bitcoin player keeps in mind: never sell your Bitcoin.' Trump praised Bitcoin, 'This afternoon, I will outline my plan to ensure that the U.S. will become the global capital of cryptocurrency and a superpower in Bitcoin, and we will achieve this goal.'

To raise campaign funds and gain support from the cryptocurrency sector, Trump has made several promises: advocating for all Bitcoins to be made in the U.S., the government retaining 100% of the Bitcoins it owns, and creating a stablecoin framework to support Bitcoin, among other measures.

After Trump ended his speech of 'never sell your Bitcoin', Bitcoin surged, breaking $68,000 on the same day, reaching a peak of $69,370.

These remarks have also been seen as the cryptocurrency industry beginning to collaborate with Trump, but it is worth mentioning that five or six years ago, when Trump was still the U.S. president, his attitude towards Bitcoin was completely opposite. According to reports from Hongxing News, Trump publicly stated during his presidency that he did not like Bitcoin, believing that such cryptocurrencies were 'air without a value foundation'. Trump also feared that Bitcoin mining activities would contribute to rising crime rates, viewing cryptocurrency as a scam and 'a huge disaster waiting to happen'. Once, Bitcoin was merely a financial investment attribute, a carnival for a minority group. Now, Bitcoin has equated itself with currency and gold and can even influence U.S. elections. According to the New York Times, the cryptocurrency industry has invested $130 million through various channels into this election. Besides Trump, another presidential candidate, Robert F. Kennedy Jr., also publicly promised that if he becomes president, the government will be required to purchase 550 Bitcoins daily until reserves reach 4 million.

Bitcoin's deep involvement in politics also means that its price is highly correlated with the outcomes of the U.S. elections.

Statistics show that a week before the presidential election, Bitcoin remained around $68,000; on November 6, with Trump’s victory virtually assured, Bitcoin skyrocketed to $74,000; then it consecutively broke through $75,000, $80,000, $85,000, $90,000, $95,000... just a step away from the $100,000 mark.

Currently, Bitcoin's market value is about $3.1 trillion, surpassing silver to become the 8th largest asset globally, following gold, Nvidia, Apple, Microsoft, Amazon, Google, and Saudi Aramco.

The carnival of virtual currencies

By 2024, Bitcoin's cumulative price increase has exceeded 100%. Compared to mainstream alternative investment products like gold and crude oil, it’s a world apart.

Even though gold has been making headlines recently, its increase this year is only 24%, just a quarter or a fifth of Bitcoin.

The investment enthusiasm for Bitcoin is unprecedentedly high, which has also indirectly boosted other virtual currencies. Ethereum (ETH) rose to $3,100; SOL rose to $239, with a peak increase of over 15%; Dogecoin (DOGE) under Musk's name peaked at over 30% increase.

The rise of virtual currencies is encouraging, providing many top players with room to play, such as: Elon Musk.

Since entering the cryptocurrency market in 2019, Musk, although not as seasoned as older players, is very adept at using his influence to manipulate the virtual currency market as the world's richest person and a marketing master.

Furthermore, in this U.S. election, Musk, as the 'First Buddy', was inseparable from Trump and deeply involved in the speculation of Bitcoin.

One virtual currency called PNUT features a cartoon hamster, based on a pet squirrel that was euthanized by New York authorities on the grounds of 'rabies'.

This incident caused a stir across the U.S., with Trump criticizing the New York Democrats for overreach, while Musk repeatedly posted about this pet squirrel on social media, stating, 'A squirrel and a virtual currency (PNUT) saved America.'

PNUT was inexplicably dragged into political struggles, with its increase expanding to 88.9% in just 24 hours, reaching the top ten on major trading platforms within less than ten days of its establishment.

Similar 'Musk trades' that forcibly elevate prices by leveraging personal influence are not limited to Squirrel Coin; Dogecoin is also included. On November 12, Trump announced that Musk would lead the proposed 'Department of Government Efficiency' (abbreviated as 'DOGE'), which coincidentally is also the abbreviation for Dogecoin, leading to a 19% surge in Dogecoin. It’s hard to believe that Musk’s successful rise to power and the surge in Dogecoin happened without some behind-the-scenes manipulation.

Is it market sentiment? Or price manipulation?

Whether it’s Squirrel Coin or Dogecoin, their surge is not directly related to the cryptocurrency market.

This also verifies that the meme coins they belong to are typical internet celebrity products.

The typical characteristic of the meme coin market is its high emotionality, where prices are often more easily influenced by celebrity statements or sudden events to achieve so-called 'consensus value': even if it is worthless, as long as enough people believe in it, it becomes valuable in the end.

Stirring up emotions and driving public opinion is also an area where Musk excels.

As for whether those who believed his words and bought Squirrel Coin and Dogecoin will suffer losses, that is not within his consideration.

However, the 'regular army' Bitcoin also operates on the same logic. Because Trump, who supports Bitcoin, was successfully elected, Bitcoin boomed.

So a year or two from now, if Trump says 'I oppose Bitcoin' again, will Bitcoin be knocked back to its original state, crashing from the sky to the ground?

Bitcoin and meme coins are not fundamentally different; both are products of emotional value speculation.

At the same time, as Bitcoin's price continues to rise, it is attracting more and more speculative funds. The influx of these funds further pushed up prices, creating a self-reinforcing cycle. However, whether this cycle can be sustained completely depends on the continued inflow of new funds. Once the inflow stops, the entire market will face the risk of collapse.

Therefore, investors who have never touched virtual currencies should remain cautious when entering the market.