Is Trump's reserve just 'empty talk'? Crypto bigwigs weigh in, Bitcoin may dip to $70,000 at its lowest, what's next?
Although Trump has been pushing to 'embrace' cryptocurrency since taking office, the crypto market has fallen back after an initial surge. Even Trump's announcement on Monday to create a U.S. strategic crypto reserve did not spark a rebound in cryptocurrency.
As of press time, Bitcoin has fallen below $85,000. Previously, news of the 'Trump Reserve' had pushed Bitcoin's price up to $93,000 at one point. Now, investors are all watching to see when Bitcoin will stop falling.
Arthur Hayes, co-founder of BitMEX, expressed his firm belief that we are still in a bull market cycle, but in the worst-case scenario, he expects Bitcoin to return to the previous cycle's historical high of $70,000.
He also mentioned that the decline in the U.S. Treasury's total account balance is equivalent to liquidity injection, and he expects new opportunities at the low point of $80,000. However, if the S&P 500 or Nasdaq 100 corrects by 20% to 30% from historical highs, and there are large financial institutions facing bankruptcy risks, all risk assets could be affected, and Bitcoin may drop below $80,000 again, possibly even to $70,000. But in the long run, Hayes remains optimistic about Bitcoin's future.
Gracy Chen, general manager of Bitget, also believes that Bitcoin's price could drop to the range of $72,000 to $80,000. She pointed out that major buyers, including sovereign wealth funds and family offices, are still hesitant. Trump's Bitcoin reserve is more of a promise than actual action. Large buyers are waiting for a better opportunity before investing significant amounts of money. Chen also holds a long-term bullish outlook but thinks Bitcoin will fluctuate between $90,000 and $110,000 in the short term, possibly dropping to a low of $80,000.
Overall, although Trump has proposed a strategic reserve plan for cryptocurrency, the market's response remains complex, and Bitcoin's price trend is filled with uncertainty. Different crypto leaders have varying judgments and expectations regarding Bitcoin's short-term and long-term trends.
