Bitcoin finally crashed the USD80,000 party over the weekend, cementing itself as the new “Trump Trade” of 2024! Back on the campaign trail, now President-elect Donald Trump became crypto’s biggest cheerleader, pledging to create a Bitcoin Strategic Reserve, battle the “big, bad CBDCs,” and protect every citizen’s God-given right to self-custody.
The real juice? Trump’s promise to clean house on the regulatory front, pledging to ax those pesky tough and unclear laws that crypto enthusiasts say are stifling the industry.
If the Trump administration seriously considers making Bitcoin a US reserve asset and supports the technology, it could give a substantial boost to Bitcoin’s global adoption. Even if every promise does not materialize once Trump takes office in January, the mere possibility of this shift would shine a spotlight on Bitcoin worldwide.
Meanwhile, a partner reached out with exciting news this morning. His team, one of the sharpest in the game when it comes to digital assets, is adding a little turbo to our existing exposure. They are known for navigating the crypto volatility with the finesse of a lion tamer in a bull ring, spotting opportunities in places most people would not dream of.
In their hands, our digital assets strategy might just get a glow-up that would make even Bitcoin blush. I have also been closely monitoring our indicators to assess potential actions for a number of existing positions.
According to a Bloomberg article, leverage in the crypto market is also surging, with open interest in both the futures and options markets elevated. The termed Bitcoin futures contracts on CME is one of the most popular ways for the US-based institutional investors to add leverage, whereas offshore traders usually tap into the perpetual futures on Binance and options on the Deribit exchange to make bets.
Bitcoin options traders are already eyeing a landmark price of USD100,000 for the original cryptocurrency. Investors are lining up bets that Bitcoin will pass the milestone as soon as the end of the year, according to data from crypto options exchange Deribit.
Here is my humble advice – know exactly what you are getting into. The biggest risk for most investors is going overboard on crypto, then panicking and selling at a loss when prices drop sharply which is part of the game. Instead, stay patient, keep a long-term perspective, and think like a venture capitalist.