Bitcoin is crazy! It soared to a historic high overnight, is it due to the collapse of U.S. credit + manipulation by capital giants?

Recently, the price of Bitcoin has reached a historic high, and there are many reasons behind this. From a macro perspective, U.S. Treasuries have been heavily sold off, Moody's has downgraded the U.S. sovereign credit rating, and the attractiveness of traditional safe-haven assets has decreased, making Bitcoin, as 'digital gold', more appealing. Moreover, U.S. inflation data has weakened, trade frictions have eased, and there is more money in the market, making high-risk assets more popular.

In terms of capital flows, although the total inflow of Bitcoin ETF has decreased significantly over the past few weeks, a large amount of capital surged in on the day it broke the new high, and listed companies are continuously increasing their Bitcoin holdings, indicating that there are many large institutions that are optimistic about Bitcoin in the long run. At the same time, the Trump administration's push to include Bitcoin in national reserves and other policies has made people feel that the regulatory environment may be friendlier in the future, reflecting this expectation in the price in advance.

From a technical and market sentiment analysis, Bitcoin has broken the previous historical high of $109,500, triggering many quantitative trading strategies to chase the rise, and also wiping out short positions. The current market sentiment is particularly greedy, but the open interest in the futures market has reached a historical high, and the number of Bitcoins on exchanges has not significantly decreased, so in the short term, many people who have made money may want to sell.

For us traders, it is important to pay attention to the $107,000 level in the short term; if it falls below, it could trigger a large amount of selling; if it can hold steady, the key levels above are $110,000 - $112,000. In terms of operation, those who have bought Bitcoin earlier can sell a portion between $109,000 - $110,000, while those who haven't bought can wait for the price to pull back to $107,000 - $108,000 to try to buy in. Additionally, there are price differences for Bitcoin between different trading platforms, which can be utilized to earn some risk-free profits. Furthermore, upcoming events such as the Federal Reserve Chair's speech and the release of U.S. CPI data may also impact Bitcoin prices, so it’s essential to keep an eye on them.

Overall, Bitcoin's new high is the result of multiple factors working together, but we should also be wary of market overheating and ensure good risk control in our operations. If you find this analysis useful, feel free to share it with friends who are interested in Bitcoin, discuss your views in the comments, and give a thumbs up for support!