Coinglass data shows that the Bitcoin market had a liquidation amount of up to $121 million in the past 24 hours, with the price once dropping to $93,700. HOYA BIT founder Peng Yunxian analyzed that the "California wildfires" and "strong US employment data" are the main factors causing this market volatility. Peng Yunxian pointed out that as an important region for cryptocurrencies, California has an extremely high cryptocurrency holding rate among residents, but the recent sudden wildfires have destroyed many residents' homes, forcing them to sell Bit to raise living funds, exacerbating the selling pressure in the market. In addition, some investors suffered serious losses due to the loss of private keys of their cold wallet assets, further affecting market sentiment. At the same time, the US non-farm employment data in December showed an increase of 256,000, far exceeding market expectations. This news triggered a across-the-board decline in the four major US stock indexes, and the 10-year US bond yield rose to 4.77%, further deepening market volatility.

Well-known cryptocurrency trader Ansem said that Bit will still face challenges in the short term, but the price is expected to stabilize in the range of $91,000 to $92,000. He believes that with the inauguration of Trump, the market's depressed sentiment is expected to ease. Although the market is optimistic about the cryptocurrency-friendly policies that Trump may implement after taking office, some believe that if Trump does not mention cryptocurrencies in his last public speech on the 19th and does not mention the relevant issues when formally handing over power on the 20th, it may indicate that cryptocurrency policy is not a high priority in his administration, which could weaken the market's optimism.

Trump's Positive Factors Spur Action, US States Frenziedly Promote Cryptocurrency Strategic Reserves

Peng Yunxian, the founder of Taiwan cryptocurrency exchange HOYA BIT, pointed out that although the market sentiment has been depressed recently, with Trump's inauguration only 8 days away, his friendly policies are expected to inject confidence into the market. Multiple US states are actively promoting plans to include Bit in their strategic reserves. According to Web3 media Decrypt, North Dakota has become the latest state to consider including Bit on its balance sheet, with the state legislature proposing to incorporate digital assets into the state government's investment strategy to combat inflation and enhance fiscal stability. New Hampshire has also introduced a similar reserve bill, with Representative Keith Ammon warning that other states that do not act quickly will miss the opportunity to establish Bit reserves.

Peng Yunxian said that states including Florida, Texas, Pennsylvania and Ohio have successively responded to this reserve wave, demonstrating a high recognition of Bit as a digital asset value. This also reflects the trend of the global financial system gradually becoming digitalized. Under economic uncertainty and inflationary pressure, countries and state governments are choosing Bit as a value-preserving tool, opening up a new chapter for the future development of cryptocurrencies.

Major Enterprises Embrace Bit, New Trend in Asset Allocation

MicroStrategy has successfully incorporated Bit into its core asset management strategy and made large-scale investments, not only driving up the company's stock price, but the value of its Bit holdings has also exceeded $40 billion, becoming a focus of industry attention. This successful case has inspired many companies to follow suit, including Tesla, payment giant Block, and video sharing platform Rumble, all of which have joined the ranks of Bit asset allocation. For example, Tesla currently holds about 10,000 Bit, worth billions of dollars, demonstrating its high confidence in the long-term potential of Bit. Block has been actively purchasing Bit since 2020, accumulating more than 8,000 Bit, becoming another case that the market is paying attention to. Peng Yunxian, the founder of Taiwan cryptocurrency exchange HOYA BIT, pointed out that more and more companies are viewing cryptocurrencies as assets with long-term appreciation potential, and this trend is rapidly emerging as a new focus in the global business field.

HOYA BIT Founder Peng Yunxian Analysis: Market Downturn is Only a Short-term Phenomenon

Peng Yunxian, the founder of Taiwan cryptocurrency exchange HOYA BIT, believes that the recent downturn in the cryptocurrency market is only a temporary phenomenon. With Trump's imminent inauguration, his policies are expected to inject confidence into the market, which will be a key moment for the market to rebound. Moreover, more companies and state governments are actively promoting Bit as part of their asset allocation, and the long-term value of cryptocurrencies is still worth looking forward to. He urged investors not to be overly pessimistic.

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