Bitcoin has been on a tear, recently hitting a new high of over $82,000! This is a huge jump, especially considering it’s up 17% since the recent election.
Trump’s Victory Fuels Bitcoin’s Rise
The biggest reason for this surge is the election of Donald Trump. Trump’s campaign promises and support for crypto have boosted market sentiment. He pledged to create a national Bitcoin reserve, buying up the 208,000 Bitcoins seized by law enforcement over the years.
Senator Cynthia Lummis, a strong supporter of Bitcoin, introduced legislation to buy 1 million BTC over five years. Trump’s advisor, David Bailey, even said this could happen within the first 100 days of his term.
This pro-crypto environment has led many to believe that Bitcoin’s upward momentum is unstoppable.
Bitcoin Nation-State Adoption: A Global Race?
Trump’s plan to create a national Bitcoin reserve has sparked a potential global race to amass Bitcoin.
Bailey believes that at least one nation-state is already a top 5 holder of Bitcoin, and more are likely to follow suit.
Short Squeeze Adds Fuel to the Fire
Another factor driving Bitcoin’s price up is a short squeeze. Short sellers, who bet on the price going down, have been forced to buy back their positions, adding to the upward pressure.
Data shows that over $133 million worth of Bitcoin short positions were liquidated on Sunday alone. This reduces selling pressure and pushes the price higher.
Retail Investors Are Back
Finally, retail investors are returning to Bitcoin. This is evidenced by a surge in Bitcoin-related searches and a steady increase in demand for Bitcoin ETFs.
With more people buying and holding Bitcoin, the price is likely to continue its upward trend.
Overall, the combination of Trump’s pro-crypto policies, nation-state adoption, short squeeze, and renewed retail interest has created a perfect storm for Bitcoin. It remains to be seen how high the price will go, but one thing is clear: Bitcoin is back in the spotlight.
