The post Bitcoin Reaches New Highs Amid Cautious Sentiment as Traders Await Potential Executive Order from Trump appeared on BitcoinEthereumNews.com.

Bitcoin’s recent price surge to $109,321 has ignited speculation regarding the stability of the market as sentiment remains neutral post-Trump’s inauguration. Amidst these developments, investors are scrutinizing the potential impact of government fiscal policies on Bitcoin’s performance. “The market is poised for cautious optimism as traders await further direction from regulatory changes,” said a COINOTAG analyst. Bitcoin hit all-time highs as traders evaluate new regulations under Trump. Market sentiment remains neutral amidst fiscal uncertainties. Bitcoin whales display cautious sentiment amidst market fluctuations Despite Bitcoin’s remarkable rise, the sentiment among whales and institutional investors has remained notably cautious. Data from derivatives markets illustrate a trend of moderate optimism, as only a portion of traders express confidence in consistent gains above $110,000 in the immediate future. This hesitance is reflected in the recently observed premium on Bitcoin futures, which reached 14%, highlighting a cautious outlook in the overarching market landscape. Regulatory changes under the new administration spark cautious optimism The anticipation surrounding President Trump’s regulatory approach to cryptocurrencies has led to a unique dichotomy in market sentiments. While many traders are hopeful for clearer regulations that could bolster the crypto sector, the apprehension in taking positions reflects a broader uncertainty in the face of potential fiscal challenges. With Bitcoin’s options 25% delta skew currently resting at -6%, it indicates a state of restrained optimism without veering into outright bullish sentiment. Fiscal concerns overshadow Bitcoin’s upward momentum The escalating US fiscal deficit has emerged as a critical factor influencing Bitcoin’s price trajectory. With the Treasury Department reporting a nearly 40% increase in the federal budget deficit year-over-year, uncertainty lingers around the government’s financial obligations. Expected costs associated with debt financing surpassing $1.2 trillion in 2025 poses significant risks for market stability, prompting many traders to reassess their involvement in the crypto market. The…

---

Filed under: News - @ January 21, 2025 12:27 am