Bloomberg: Bitcoin records the biggest increase of the year, short-term "sell news" behavior may occur but long-term bullish

ChainCatcher reports, according to Bloomberg, Bitcoin has set the largest increase since the New Year, breaking through the $100,000 mark again. The latest U.S. inflation data reignited people's bets on further interest rate cuts by the Federal Reserve, boosting global markets.

Now, focus is shifting towards policy initiatives expected to be taken after President-elect Trump's inauguration on January 20th. These may include measures supporting the cryptocurrency industry. Speculators are weighing risks of inflation tariffs and immigration policies against Trump's promise to make America a global hub for digital assets; he also supports establishing a national bitcoin reserve.

A key question is whether Bitcoin will experience a "sell news" profit-taking after rising 50% following Trump's victory on November 5th when he actually takes power. Cosmo Jiang, portfolio manager at Pantera Capital said: "Our understanding is that Trump plans to issue numerous executive orders shortly after his inauguration next week; some of these are particularly beneficial for digital assets. In short term we might see some 'sell news' behavior but those who do so fail to see the big picture."