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What risks are still present in the current market? Is there a possibility of a sharp drop in bitcoin?
It is recommended to moderately adjust investment positions to diversify risks, it is currently not advisable to excessively bet on the market.
Replaying 2021! Bitcoin leads the surge of risky assets, while the US stock market fears a repeat of the major decline in 2022.
Currently, the 10-year US Treasury bond yield is about 4.43%, far higher than the 1.5% in December 2021. Analysis suggests that the current higher borrowing costs have increased market risks. If corporate profits fail to meet expectations, or if Trump fails to fulfill his commitment to create a national reserve of bitcoin, the stock market and bitcoin may face difficulties.
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Trump camp suddenly released major 'revelations'. Bitcoin surged violently by 0.097 million. Musk reportedly has accepted dogecoin payment.
On Monday, November 25th, bitcoin surged violently above $97,000. Newly elected US President Donald Trump announced that the prominent crypto hedge fund manager Scott Bessent will serve as the new Treasury Secretary. Republican Representative French Hill from Arkansas revealed that Hester Peirce, considered the "mother of cryptos" by some, will take over as the Acting Chair of the US Securities and Exchange Commission.
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The commerce minister nominated by Trump is also a crypto enthusiast and is said to promote a bitcoin lending project.
① The Secretary of Commerce nominee Howard Lutnick, appointed by Trump, has always hoped to popularize cryptos, and his company is reportedly planning to offer dollar loans to customers secured by bitcoin; ② He will collaborate with the stablecoin company Tether, with an initial project scale of 2 billion dollars and a final goal of hundreds of billions of dollars.
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Market sees a "Mnuchin 2.0"? Bezent nominated as Treasury Secretary, US dollar falls, US bonds rise, bitcoin follows suit by declining.
Analysis believes that Benson will usher in the era of 'Mnuchin 2.0', Mnuchin cannot stop all tariff policies, but he knows where the red line is and ensures the smooth running of the US bond market. The market expects that the new government's fiscal policy will be implemented gradually, in stages, implementing tariff policies, rather than as radical as promised during the Trump campaign.
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Trump's nominated Secretary of Commerce's company is negotiating with stablecoin giant Tether on a $2 billion bitcoin loan project.
Lutnick's financial services company Cantor Fitzgerald is negotiating with Tether to launch a $2 billion project, offering clients dollar loans with bitcoin as collateral.
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