Bitcoin broke through the $80,000 mark and hit a new record high . From a technical perspective, after half a year of adjustment, it has broken through the adjustment platform and started a new wave of upward trend. Analysts at the StarEx exchange believe that the market believes that after Trump took office, in addition to the policy of relaxing regulations, the world will enter an era of large-scale money printing, and long-term inflation is a foregone conclusion . Gold and US bond yields have given the same expectations.
When Trump was the US president last time , his monetary policy was known for being " loose and aggressive " , with tax cuts and large-scale fiscal stimulus. Trump is a businessman who is more pragmatic, and his policy tone tends to stimulate the economy through fiscal expansion. It is highly likely that Trump will continue his previous policies in his new administration , and printing money has become one of the means to control the economy, and it may be the only means .
This will not only increase the money supply, but also intensify the market's inflation expectations, thereby threatening traditional savings and investment methods. The market will look for new ways to preserve value, and Bitcoin, as a " digital gold " , will become an object of pursuit for investors.
The expectation of monetary expansion brought about by Trump's election, combined with the uncertainty of the global economy in recent years, has made the inflation problem more serious. The logic behind inflation lies in the increase in money supply. When the number of dollars circulating in the market increases, the purchasing power of money decreases, which in turn leads to rising prices. This not only affects the domestic market in the United States, but also affects the global trust in the dollar. Against the backdrop of global currency depreciation, central banks in various countries have adopted interest rate hikes to deal with inflation, and the United States is no exception , which can be seen from the continued rise in U.S. bond yields.
From the past strong interest rate hikes and balance sheet reductions of the Federal Reserve, it can be seen that although inflation has declined, it is obviously difficult to cure the inflation problem caused by money printing by simply raising interest rates. Especially when Trump may take office and restart the loose policy, the inflation risk will be further exacerbated. Faced with this situation, investors gradually turned their attention to assets such as Bitcoin and gold . The BTC market trend reflects the market's expectations for this prospect.
Analysts at StarEx Exchange believe that Bitcoin has a positive long-term trend, especially in the context of increasing global economic uncertainty and inflationary pressure. In the future, Bitcoin may not only continue to play an anti-inflation role, but may even become an important part of global asset allocation. With the entry of more institutional investors, the liquidity and stability of the Bitcoin market will be further improved, which will further consolidate its position as " digital gold " .
Judging from past Bitcoin cycles, whether the Federal Reserve is printing money or halving the price, Bitcoin will lead the market into a crazy bull market in the second half of the bull market. It is highly likely that Bitcoin will reach the $ 100,000 mark this year, and is expected to hit $ 150,000-200,000 in 2025 .
