The Federal Reserve meeting at 3 a.m. has concluded, and the market showed a pinning trend during the meeting. First, in January, it announced to maintain interest rates, which was discussed a few days ago; the negative impact of not lowering interest rates in January was already released last December, so the sentiment has already been released, and the price did not break 100,000. Additionally, the expectation for a rate cut in March has once again decreased, meaning that a rate cut in March may be unlikely. Unexpectedly, Powell spoke, and the market began to rebound, mainly because Old Powell talked about the relationship between crypto and banks, which is good for the crypto market.
He also clearly stated that as long as regulation is in place, banks entering the crypto market is not a problem. This is the second time he has released a crypto-friendly signal. Last time he said Bitcoin can compete with gold; this time he acknowledged that banks can provide BTC services. This indicates that U.S. crypto policy has started to influence the decision-makers at the Federal Reserve. In the future, if the U.S. government supports cryptocurrencies more, the Federal Reserve is unlikely to oppose it, which is a long-term positive for Bitcoin.
Additionally, some U.S. state governments are beginning to view Bitcoin as a strategic asset. Arizona has passed a Bitcoin strategic reserve bill, allowing state governments to invest public funds in BTC and other crypto assets.
The Lieutenant Governor of Texas has also made it clear that Bitcoin reserves will be a legislative focus in 2025. South Dakota also has legislators planning to propose a bill to establish a 'strategic Bitcoin reserve.' These actions indicate that local governments in the U.S. have begun to treat Bitcoin as a reserve similar to digital gold.
If more and more state governments start hoarding BTC, it will benefit Bitcoin's long-term rise. Overall, Bitcoin's fundamentals are becoming stronger. Various states in the U.S. are beginning to hoard Bitcoin, and Bitcoin is becoming 'digital gold.'
During Trump's four-year presidency, Bitcoin is very likely to experience a long bull market.
Besides tomorrow's PEC, there are no macro impacts on the market in the short term, so I believe that February will be a rare window period for the entire crypto market. If altcoins warm up comprehensively, it is most likely to happen in a few months, probably February has potential. Since Christmas, macro data has been released every half month to influence market price trends, but there is very little in February, so everyone can look forward to it.
The sentiment is currently good, and Bitcoin is steadily rising above 100,000. We are waiting for the PEC data to be released. Next week's financial reports will definitely continue to be favorable. Although Ethereum is not strong, it is doing well to keep up whenever Bitcoin recovers. We can place our hopes for Ethereum on the staking ETF; it just depends on when the news will be released for further independent upward movement.
As for altcoins, it remains as previously stated: with the external situation forming and BTC sentiment stable, we just need to wait for the leading coins or Ethereum to release news.
