Today, both the Israeli military chief and Iranian officials confirmed that the US has indeed bombed Iran's nuclear facilities. This effectively marks the end of the war, and the market no longer needs to worry about this thunder. Looking at Bitcoin's trend, it is about to rush to $110,000 soon, so everyone, fasten your seatbelts!
Bitcoin is really stable; last night, Trump was erratic, sometimes calling for peace and sometimes declaring war, which scared Ethereum and altcoins half to death, but Bitcoin remained unmoved. From the small cycle K-line, it has been climbing upward all the way, and today during the day, it has again risen above $108,000. Now that the news of the end of the war is confirmed, it is certain to rush towards $110,000 again. The current market resembles the situation when it rushed to a historic high two weeks ago, and since it has already broken through $110,000, this time it will be easier. I guess it will reach that mark by the weekend at the earliest, and by next week at the latest. Once it stabilizes at $110,000, those quality altcoins should see some upward adjustment.
The battle is over, and now the market's biggest concern is the tariff issue. There are less than two weeks left until the July 9 tariff deadline, and from the statements of various parties, the negotiations do not seem to be going well. Last night, the EU also stated that even if Trump raises taxes, they will retaliate, implying that not a penny more can be charged. Negotiations with China are also not going smoothly; it is estimated that in the end, both sides will just restrict chip and rare earth exports, and this issue may drag on until August. Recently, Trump has been pressuring Japan to pay more military expenses, hoping to reduce the trade deficit through this. The negotiations with Canada and Mexico are also back and forth, likely dragging on until the final deadline. Currently, only a few minor allies like the UK and Vietnam have reached agreements, and they are basically being tightly controlled by the US. In Europe, NATO countries have agreed to increase military spending to 5% of GDP, except for Spain, which refuses. Trump directly threatened to impose double tariff packages. In short, the tariff situation still has a lot of variables, but the US's precise strike on Iran's nuclear facilities has indeed flexed its muscles and is quite deterrent to smaller countries. It is estimated that we also have to make some noise in response. Since Trump took office, the whole world has become more aggressive, which is a good thing for gold and Bitcoin in the long term.
Last night, Powell went to Congress again. This time, he was a bit tougher than the day before, directly stating that the reason for not lowering interest rates now is because of the trade war. If the trade war eases, they might consider lowering rates, but for now, they will definitely not move, especially since high tariffs have an uncertain impact on inflation. Trump was not pleased to hear this and directly said he is already interviewing candidates for a new Federal Reserve chairman, with a shadow chairman list to be announced this summer. The market immediately guessed that the new chairman would definitely be a dove, so yesterday Morgan Stanley predicted there would be 7 rate cuts. However, the Wall Street Journal said that changing personnel now could have the opposite effect; if the new chairman comes in and immediately starts flooding the market with liquidity, they would be seen as Trump's bootlicker. Anyway, Trump is determined to control the Federal Reserve, which means the money printing machine will soon be running at full capacity, and interest rates will drop to historic lows, which is very beneficial for Bitcoin.
The US housing regulatory agency plans to allow cryptocurrency to be used as collateral for mortgages, requiring Fannie Mae and Freddie Mac to prepare accordingly. They also mentioned that cryptocurrency can be used as reserves. The key point is not that Bitcoin can be used to buy houses, but the three words 'reserve funds'—which means that if they accept the coins, they won't sell them, effectively turning their original stock of houses and cash into cryptocurrency. This is in line with the Bitcoin reserve legislation in various states and companies hoarding coins. Now New Hampshire, Arizona, and Texas have already passed reserve legislation, and Utah and Oklahoma will soon follow. The federal government's detailed rules will also be out soon, and the Treasury will certainly find the money to buy coins. In short, Bitcoin has already been tied to the fate of the United States, and the market cap ceiling has been thoroughly opened.
Recently, altcoins have been plummeting, but stocks related to cryptocurrency concepts are flying high. Yesterday, Guotai Junan, and today it was revealed that more than one firm in Hong Kong has obtained virtual asset trading licenses, with Victory Securities rising by 130% and Ade Securities also taking off. The stocks of Xinan Century and Kexin Information on the A-share market directly hit the daily limit, with Lakala rising over 10%. In the US stock market, apart from Circle dropping last night, other crypto stocks were all rising. Now it seems that every Tom, Dick, and Harry is rising, while altcoins are getting beaten up. Some say that now good projects all want to go public on Nasdaq; previously, they came to the crypto circle to issue coins because of unfavorable policies, but now that policies have opened up, the opportunity to get rich may not be in the crypto circle but in the stock market. Just look at how many of those crypto circle celebrity VCs are left? Capital is the smartest; it goes wherever it can make money. Therefore, this round of investment shouldn't just focus on the crypto circle; we need to pay more attention to traditional markets, and when buying coins in the crypto circle, we must be very selective.
