Bitcoin Hits $118,000 High After Trump Endorsement, SEC ETF Approval

Bitcoin has reached an unprecedented high of $118,000, causing significant ripples in the global financial markets. This surge in value has brought into sharp focus the recent actions of major players, particularly Germany's government, which sold 50,000 BTC at approximately $54,000 per coin. This decision resulted in a loss of roughly $3.1 billion in unrealized profits, according to Warcher Guru. The sale temporarily depressed prices, raising concerns about the execution of the trade and the broader implications of government-led crypto liquidations.

Analysts have been quick to criticize the strategy, pointing out that the sale suffered from slippage due to poor trade execution. This large-scale liquidation underscored how government sell-offs can have a significant impact on the crypto market. Beyond the financial loss, the move also highlighted inefficiencies in managing digital assets at a national level.

Bitcoin's ascent to new heights was not an isolated event. The momentum began to build after Donald Trump publicly endorsed Bitcoin during his campaign. His support helped propel Bitcoin past the $100,000 mark shortly after his election victory. Additionally, growing institutional interest played a pivotal role in driving the price higher. The U.S. Securities and Exchange Commission's approval of spot Bitcoin ETFs in early 2024 further fueled the rally. This approval allowed investors to gain exposure to Bitcoin without directly owning it, leading to an influx of both retail and institutional money into the market. Companies also began to hold Bitcoin in their corporate treasuries, following a strategy popularized by Michael Saylor’s firm, MicroStrategy.

With a market capitalization of $2.25 trillion, Bitcoin now dwarfs Ethereum's $340 billion market cap. What was once considered a niche asset is now in the hands of major corporations and funds. If Satoshi Nakamoto, the anonymous creator of Bitcoin, were to reappear, his holdings would be worth over $100 billion.

Despite the criticism surrounding Germany's Bitcoin sale, the country has made significant strides in blockchain innovation. NRW.BANK, a state-owned development bank, issued a €100 million bond on the Polygon network. This two-year bond falls under Germany’s Electronic Securities Act, which allows for digital issuance and registration. The bank utilized Cashlink Technologies and Polygon to complete the bond sale, marking a major shift toward blockchain adoption in the public sector. This move demonstrates Germany's commitment to advancing digital finance through innovative solutions, despite past missteps.