Bitcoin's $100K Volatility: USPS Halts China Shipments, US Eyes Bitcoin for Sovereign Wealth Fund

Bitcoin's volatility has surged near the $100,000 mark, as geopolitical tensions and regulatory developments continue to shape the cryptocurrency landscape. The US Postal Service's recent halt on China shipments has raised concerns about the impact on the crypto market, while the US's plans to establish a sovereign wealth fund have sparked speculation about potential Bitcoin inclusion.

The US Postal Service's temporary suspension of international package acceptance from China and Hong Kong has disrupted the flow of goods between the two nations. This move, aimed at countering drug trafficking, has significant implications for e-commerce giants like Shein and Temu, which have been major beneficiaries of the US-China trade. The use of digital assets in this trade has gained momentum, with payment methods such as PayPal, Visa, Apple Pay, MasterCard, and Google Pay heavily adopting cryptocurrencies.

Meanwhile, the US's plans to create a sovereign wealth fund have sparked debate about the potential inclusion of Bitcoin. Crypto czar David Sacks' announcement has led investors to wonder if the US will start buying Bitcoin to stay ahead of other nations in the race to accumulate the cryptocurrency. Sacks has emphasized the importance of stablecoins and digital asset regulation, stating that the US is entering a "golden age in digital assets."

Despite the recent volatility, Bitcoin's price has been following a downtrend within a range of sideways movement since November 2022. There is horizontal support at the current level, which may allow the price to bounce. If the price continues to fall, further support can be found at $95,000 and $92,000, with the major ascending trendline acting as a large ditch support.

Looking ahead, the continuation of the uptrend appears more likely, as the final stage of the bull run may come to an end towards the latter part of this year. The geopolitical landscape and regulatory developments will continue to shape the cryptocurrency market, with Bitcoin's volatility remaining a key factor in investor decisions.