Data from Glassnode indicates a significant decline in Bitcoin’s hot supply, dropping by 50%. This decrease raises questions about potential influences from President Trump’s recent crypto initiatives, leading to mixed reactions among market observers.
What is Hot Supply?
Hot supply tracks the active Bitcoin trading within short timeframes. A contraction in this metric signals reduced market enthusiasm, often influenced by external uncertainties.
Related: Arizona House Committee Greenlights Bitcoin Reserve Bill
Could Trump’s Crypto Actions Be Behind the Cooling Speculation?
Some supporters hail Trump’s favorable digital asset stance, while others suspect market manipulation. Analyst Atlas claims Trump’s team engaged in a pump-and-dump scheme, alleging they took long positions, hyped the market, and then sold for profit. This notion gained traction after Trump announced a U.S. Crypto Reserve, intensifying speculation.
Trump’s Crypto Reserve Plan for Market Manipulation
Though Trump’s push for blockchain innovation is welcomed by some, skeptics see it as a market manipulation tactic. His ambitious plan to buy 200,000 BTC annually for five years has sparked criticism, suggesting it aims to artificially elevate market sentiment for quick gains.
Market volatility has observers divided; some foresee price corrections while others hope for stability through institutional participation.
Bitcoin’s Resistance Test: Bullish Hopes Meet Cautious Reality
Bitcoin’s price is currently testing a crucial resistance zone. While the recent optimism due to the Federal Reserve’s slowing of quantitative tightening is notable, a cautious approach is advised until a confirmed breakout occurs.
Source: Luca
Related: Ripple CTO David Schwartz Explains Why Bitcoin Lost Its Transactional Edge
Market participants are closely monitoring this situation. Though bullish potential exist, Bitcoin’s downtrend since early December calls for caution. Many traders hedging positions to mitigate risks continue accumulating BTC amid price fluctuations.
At present, sentiment is fragile. A decisive break above resistance might indicate a trend reversal, but until then, cautiousness prevails, especially among short-term traders in Bitcoin’s volatile market.
Disclaimer: The information presented is for informational purposes only and does not constitute financial advice. Coin Edition is not liable for any losses. Caution is advised before taking any action related to the information provided.
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