Bitcoin (BTC) has rallied over the past weekend and surpassed the $100,000 mark. However, the digital currency has often been held back by short-term resistance levels.
By 2:00 p.m. on January 20, Vietnam time (2:00 a.m. on January 20, US time), BTC had increased sharply from $102,000 to more than $108,000 in less than an hour. The new record of $109,115 was recorded at around 2:00 p.m. Vietnam time, higher than the old peak of $847.
The rise in Bitcoin prices was driven by expectations of the policies of Mr. Trump, who is scheduled to take office at 12:00 on January 20 (US time). He has expressed his intention to establish a national reserve of Bitcoin and is likely to sign a related executive order shortly after his inauguration.
CoinDesk quoted venture capitalist Matt Higgins predicting that countries could start holding strategic Bitcoin reserves by 2025. He estimated that if 1 million BTC were transferred to national reserves, the circulating supply would decrease by 6.6%, leading to a price increase of over 30%.
Key positions related to cryptocurrency have also been filled in Trump's team. Former PayPal CEO David Sacks will head the White House's artificial intelligence and cryptocurrency division. Cryptocurrency advocate Paul Atkins has been nominated to head the Securities and Exchange Commission (SEC).
Not only Bitcoin, memecoins named TRUMP and MELANIA also made waves in the market. TRUMP, launched on January 18 at a price of $6, quickly increased to $33 after only 12 hours and peaked at $75.35 before cooling down to below $60. With a total supply of 1 billion tokens, of which 20% are in circulation, TRUMP's market capitalization is about $11.7 billion, ranking 18th in the market.
The MELANIA token also recorded a staggering increase, rising 24,000% to a peak price of over $13, attracting liquidity from TRUMP.
According to some observers, the debuts of TRUMP and MELANIA represent a phase of “FOMO” (Fear of Missing Out) in the market, contributing to the Bitcoin price correction. However, these moves are also seen as positive signals.
Jeff Dorman, chief investment officer of Arca Cryptocurrency, said the presence of TRUMP has removed the biggest regulatory risk in the cryptocurrency market. He said that this memecoin is a "green light" for companies, cities and individuals to use cryptocurrencies as a new mechanism for raising capital.
In Vietnam, representatives of the State Bank have repeatedly sent out the message: Bitcoin and other similar virtual currencies are not legal currencies and payment methods in Vietnam. The issuance, supply, and use of Bitcoin and other similar cryptocurrencies as payment methods are acts that are not in accordance with current laws.
