$BTC

Cailian Press, December 25 (Editor: Huang Junzhi) As 2025 approaches, the focus of the cryptocurrency market has returned to the United States due to the re-election of Donald Trump as the US President: global funds have an increasing demand for the country's digital asset type funds (for example, Bitcoin ETF and Ethereum ETF) and cryptocurrency derivatives contracts.

Since Trump was elected, he has repeatedly demonstrated his determination to support cryptocurrencies: not only has he added several "crypto supporters" to key economic posts in the next administration, he has also vowed to make the United States the "global cryptocurrency capital." This has triggered a trading frenzy, driving global funds to the U.S. cryptocurrency trading market.

And before this, since the unexpected launch of the Bitcoin exchange-traded fund (i.e., Bitcoin ETF) in the United States at the beginning of this year, trading activity has started to surge. Therefore, with the positive factor of Trump's election, the trading price of Bitcoin successfully reached the epic threshold of $100,000.

Because of this, the U.S. market has become increasingly critical for global cryptocurrency liquidity and benchmark pricing for cryptocurrencies like Bitcoin, while for most of last year, Asia seemed to be the biggest beneficiary of the Biden administration's crackdown on cryptocurrencies; now Trump is fully reversing this situation.

Changes in market structure

Statistics from Kaiko show that the daily trading share between Bitcoin and the U.S. dollar conducted during U.S. hours has surged from 40% in 2021 to about 53%.

Other data shows that since its launch in January this year, the cumulative trading volume of the U.S. Bitcoin ETF has exceeded $500 billion, with a net inflow of about $36 billion. The "iShares Bitcoin ETF" issued by the world's largest asset management giant BlackRock is one of the most successful funds in history.

On the other hand, the Chicago Mercantile Exchange (CME Group Inc.) has seen the open interest in Bitcoin and Ethereum futures reach historic highs this year. The significant increase in the number of open contracts in the futures market usually means more net inflows of funds, indicating a strong bullish interest among most investors regarding the future price trends of Bitcoin and Ethereum.

Currently, the Chicago Mercantile Exchange ranks first in terms of the scale of open interest in Bitcoin futures, while the offshore cryptocurrency trading platform Binance Holdings Ltd. was previously the absolute leader in the cryptocurrency futures trading market.

Thomas Erdösi, product head at CF Benchmarks, stated that the participation of institutional cryptocurrency investment led by large asset management institutions on Wall Street has significantly increased, completely shifting the "dominance of cryptocurrency liquidity" to the United States.

Wall Street is bullish

Analysts also expect that under Trump's leadership, the variety of U.S. cryptocurrency ETFs is likely to surpass the current range (currently limited to Bitcoin and Ethereum). Wall Street is already looking forward to a new wave of investment after Trump officially takes office.

Wall Street investment bank Bernstein expects that with Trump's official taking office, there may be greater support for the development of cryptocurrencies, and by the end of 2025, the price of Bitcoin will reach $200,000.

This target price is consistent with that given by Geoff Kendrick, global head of digital asset research at Standard Chartered Bank.

"We expect that Bitcoin will eventually replace gold in the next decade, becoming the primary 'store of value asset' in the new era, and a permanent component of multi-asset allocation for investment institutions and a standard for corporate financial management," Bernstein pointed out.

(Financial Alliance Huang Junzhi)