In general, Donald Trump’s presidency is seen as positive for Bitcoin. Although the Strategic Bitcoin Reserve he promised has not yet been implemented, there are already many improvements for the industry in the US. But last night, Trump did something that temporarily put BTC under pressure.
Donald Trump puts Bitcoin in trouble
Last night, Donald Trump announced that he wants to impose import tariffs of 25% on Mexico and Canada starting February 1st.
As a result, all financial markets fell at the end of the US trading session, and Bitcoin also struggled. This came at a very bad time, as BTC was just approaching its all-time high of $109,000.
The cryptocurrency was at $106,000 at the time, but has since fallen to $104,000.
This does not necessarily mean the end of the uptrend, but it is a sign that the market views such interventions by Trump as negative for financial assets.
The market remains optimistic
Despite the short-term uncertainty, the market remains positive about BTC overall. There are particularly high expectations for MicroStrategy at the moment, as the betting markets on Polymarket show.
There is a 60% probability that MicroStrategy will own more than 500,000 BTC by March.
PSA: This is the market that will signal how much STRK has raised. Polymarket is a gift.
The company currently holds 471,107 BTC, which were purchased at an average price of around $62,000. At the current price, this corresponds to a value of around $50 billion – a significant book profit for MicroStrategy.
If the bettors on Polymarket are right, MicroStrategy would have to buy almost 30,000 more BTC in February. At current prices, this would require over $3 billion.
So for this strategy to work, MicroStrategy would have to continue to successfully raise capital. What do you think? Will the company be able to buy that much BTC in the coming weeks?
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