Bitcoin Surges 10% on U.S. Gold-for-BTC Proposal

Bitcoin (BTC) experienced significant price volatility following remarks from a U.S. government official who suggested that the government might use its gold reserves to purchase BTC. This proposal, aimed at increasing the nation's digital asset holdings, sparked a wave of speculation and uncertainty in the market. The potential for the U.S. to formally acquire BTC could ignite bullish sentiment, potentially leading other nations to consider similar strategies and initiating a global race to establish national Bitcoin reserves. However, the market remains skeptical about the feasibility of this plan, and if it turns out to be merely a policy discussion, the market could see short-term volatility before stabilizing.

According to a Bitunix analyst, the short-term support level for BTC is at $83,000. If this level is breached, the price could retest the $80,000 mark. The key resistance zone is identified between $87,000 and $88,000. A successful breakthrough in this range could push the price towards the $90,000 level. The analyst advises investors to closely monitor the market's interpretation of this policy and to be prepared to adapt to potential fluctuations in the short term.