1. Introduction

1.1 Background and Significance

Since its birth in 2009, Bitcoin, as a decentralized digital currency, has gradually emerged in the global financial field. Its unique technical architecture and financial attributes have aroused widespread attention from investors, financial institutions, and regulators. The price of Bitcoin fluctuates dramatically, and its market size continues to expand, making it an indispensable part of the financial market.

Donald Trump served as the President of the United States from 2017 to 2021, and during his re-election in 2024, his economic policies and financial regulatory attitudes had a profound impact on the U.S. and global financial markets. The fiscal policy, monetary policy, and trade policy of the Trump administration intersected to varying degrees with the development of the Bitcoin market. During his tenure, the Bitcoin market experienced rapid development and change, frequent price fluctuations, a continuous increase in market participants, and a changing regulatory environment. Trump’s policy statements directly or indirectly affected the confidence and expectations of market participants, thereby influencing the price trend, market acceptance, and regulatory policy formulation of Bitcoin.

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2. Trump’s Policy Measures Related to Bitcoin

2.1 Promises and Positions During the Election Period

During the 2024 U.S. presidential campaign, Trump’s Bitcoin-related policy stance became a focus of attention. He proposed to promote Bitcoin as a strategic reserve asset for the United States, which sparked strong reactions in the cryptocurrency field. Trump is well aware of Bitcoin’s unique position and potential in the global financial market. He believes that as a decentralized digital currency, Bitcoin has the advantage of resisting traditional financial risks and addressing economic uncertainties. By listing Bitcoin as a strategic reserve asset, it can not only enhance America’s influence in the global cryptocurrency field but also add new stability factors to the U.S. financial system. Trump also promised to simplify cryptocurrency regulation, aiming to create a more relaxed and friendly development environment for the cryptocurrency industry. He realizes that cumbersome regulatory policies may hinder innovation and development in the cryptocurrency industry, so he advocates reducing unnecessary regulatory constraints to allow the market to operate more freely.

Trump supports the establishment of a stable coin framework. Stable coins, as a type of digital currency pegged to fiat currency, play an important role in the cryptocurrency market. A sound stable coin framework can enhance market stability, promote widespread use and circulation of cryptocurrencies. These commitments reflect Trump’s positive attitude towards the cryptocurrency industry. He is attempting to lead the U.S. in the cryptocurrency field and create the ‘World Capital of Cryptocurrency’ through a series of policy measures. His positions have garnered widespread attention and support from the cryptocurrency industry, with many practitioners and investors looking forward to him fulfilling these commitments after being elected, bringing new development opportunities to the industry.

2.2 Administrative orders and specific actions after taking office

2.2.1 Establishment of the digital asset research group

In January 2025, Trump signed an executive order to establish a special working group to study digital assets, which is of great significance in the development of Bitcoin. The main responsibilities of the working group cover several key areas, first of all, to assess the feasibility of establishing a national digital asset reserve. As a representative of digital assets, the decentralization and anonymity of Bitcoin make it unique in the global financial market. Establishing a national digital asset reserve can not only reflect the United States’ emphasis on the emerging financial sector, but also enable the United States to take the lead in the global digital economy competition. The working group needs to conduct in-depth research on the market characteristics, technical architecture, risk factors, etc. of Bitcoin, comprehensively consider various factors, and provide a scientific basis for the establishment of a national digital asset reserve.

Developing a clear and precise regulatory framework for the cryptocurrency industry is also an important task of the working group. The rapid development of the cryptocurrency industry has brought many regulatory challenges, such as market manipulation, money laundering, investor protection, and other issues. A sound regulatory framework can standardize market order, protect the interests of investors, and promote the healthy development of the cryptocurrency industry. When formulating regulatory frameworks, the working group needs to fully consider the characteristics of cryptocurrencies such as Bitcoin, balance the relationship between innovation and regulation, encourage industry innovation, and prevent financial risks. The signing of this executive order indicates that the Trump administration’s attention to the cryptocurrency industry is continuously increasing, beginning to strategically plan the development direction of the cryptocurrency industry, laying the foundation for subsequent policy making and market regulation.

2.2.2 Establish Bitcoin Strategic Reserves

Trump signs executive order to establish Bitcoin Strategic Reserve, causing a stir in the Bitcoin market. The reserve is capitalized with about 200,000 Bitcoins owned by the federal government, which were confiscated as part of criminal or civil asset forfeiture proceedings, making the establishment of the reserve not require taxpayer funds. The government has explicitly stated that it will not sell any of the Bitcoins stored in the reserve, sending a strong signal to the market of a ‘hold-only’ principle. From a market liquidity perspective, a large amount of Bitcoins being included in the strategic reserve and no longer entering the circulation market has somewhat reduced the market supply of Bitcoin. Based on the principle of supply and demand, the reduction in supply may provide support for market prices and drive up the price of Bitcoin. From a market confidence perspective, the government’s move demonstrates recognition of the value of Bitcoin and a positive long-term outlook, which helps strengthen investors’ confidence in Bitcoin, attract more investors to the market, and further drive the development of the Bitcoin market.

The government has also authorized the Minister of Finance and the Minister of Commerce to develop strategies to maintain budget neutrality to acquire more Bitcoin, indicating the government’s intention to further expand the scale of Bitcoin strategic reserves. This action not only reflects the Trump administration’s positive support for the cryptocurrency industry but may also have far-reaching implications for the global Bitcoin market, triggering other countries’ attention and imitation of digital asset reserves. This move also faces some challenges and controversies. The high volatility of the Bitcoin market poses significant risks to reserve asset management, and ensuring the preservation and appreciation of reserve assets in price fluctuations is an important issue for the government to address. The legitimacy and compliance of including Bitcoin in strategic reserves are also subject to some questioning, requiring the government to provide clarity and regulation at the legal level.

2.2.3 White House Cryptocurrency Summit Promotion

On March 7, 2025, the White House hosted the first cryptocurrency summit, where Trump’s remarks and promotion had a profound impact on the cryptocurrency market. Trump clearly stated that the US federal government will support the development of cryptocurrencies represented by Bitcoin and the digital asset market, injecting strong confidence into the cryptocurrency industry. He pointed out that the ‘war’ waged by the previous administration against the entire cryptocurrency industry has ended, meaning that the Trump administration will adopt a different policy orientation from the previous administration to create a more relaxed development environment for the cryptocurrency industry.

Trump supports Congress passing legislation at the summit to provide regulatory certainty for the cryptocurrency and digital asset markets. Clear regulatory rules are crucial for the healthy development of the cryptocurrency market, as they can reduce market uncertainty, lower investor risks, and attract more funds into the market. In the absence of clear regulation, the cryptocurrency market often tends to be chaotic, with issues such as fraud and money laundering, which not only harm the interests of investors but also hinder the industry’s normal development. Providing regulatory certainty through legislation can regulate the behavior of market participants, promote fair competition in the market, and drive the cryptocurrency industry towards a more mature and standardized direction.

The summit was attended by about 30 senior government officials, congressmen, and corporate executives, indicating that the cryptocurrency industry has attracted high attention from the US government and various sectors. The summit provided a platform for government, enterprises, and industry experts to exchange views, facilitate consensus on issues such as the development and regulation of cryptocurrencies, and jointly promote the development of the cryptocurrency market. The hosting of the summit also sent a signal globally that there has been a significant shift in US policy in the cryptocurrency field, actively engaging in and promoting the development of the cryptocurrency market, which may have a significant impact on the global cryptocurrency market landscape, prompting other countries to re-examine and adjust their own cryptocurrency policies.

3. The Impact of Trump’s Policies on the Price Trend of Bitcoin

3.1 Short-term Price Volatility Performance

3.1.1 Immediate price reaction at the time of policy release

Trump’s policies and remarks in the cryptocurrency field have significantly impacted the short-term price volatility of Bitcoin. On March 2, 2025, Trump posted on his social platform, stating that he is considering including five cryptocurrencies, namely Bitcoin, Ethereum, Ripple, Solana, and Cardano, in the new US cryptocurrency strategic reserve, aiming to make the US the ‘world capital of cryptocurrency.’ Upon the announcement, the price of Bitcoin soared instantly. Within a few hours, the price of Bitcoin rapidly surged from around $85,000 to $94,000, with an increase of over 10%. The total market value of the cryptocurrency market also rose by about 10% within a few hours, increasing the global cryptocurrency market value by about $300 billion. This reaction fully reflects the strong market expectation of Trump’s support for cryptocurrency policies. Investors generally believe that including Bitcoin in the strategic reserve will enhance its status and value, thus triggering a substantial amount of buying behavior and driving up the price of Bitcoin in the short term.

However, the market’s reaction is not always positive. On March 7, 2025, David Sachs, the White House official in charge of artificial intelligence and cryptocurrencies, stated that Trump signed an executive order to establish a Bitcoin strategic reserve, with reserves of approximately 200,000 bitcoins owned by the federal government as capital. These bitcoins were confiscated as part of criminal or civil asset forfeiture proceedings, and the government will not sell any bitcoins deposited into the reserve. After the news was released, the price of Bitcoin broke through $94,000 and then fell to around $85,000, a drop of over 5% for the day, with a fluctuation of 10%. Token prices such as Ethereum, Ripple (XRP), and Solana (SOL) also experienced significant fluctuations. This is because the market originally expected the government to increase reserves by purchasing bitcoins, bringing in new funds and driving prices up. However, the reality is that the government is only converting existing bitcoins into reserves without adding new funds, which has disappointed the market and triggered selling, leading to a decline in the price of Bitcoin.

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3.1.2 The difference between market expectations and actual implementation causing fluctuations

The difference between market expectations and the actual implementation of Trump’s policies is an important factor causing short-term fluctuations in the price of Bitcoin. After Trump announced that Bitcoin would be included in the strategic reserves, the market generally expected the US government to continue to purchase and hold Bitcoin, which would increase the demand for Bitcoin in the market and drive up prices. On March 6, 2025, Trump signed an executive order to establish a strategic reserve of Bitcoin. In reality, the strategic reserve is capitalized with about 200,000 Bitcoins owned by the federal government, which were obtained through criminal or civil asset forfeiture proceedings, and the government does not have a new purchase plan. This result is far from market expectations, causing the market sentiment to shift from optimism to disappointment. Investors have been selling off Bitcoin, leading to a significant short-term decline in Bitcoin prices.

When President Trump signed an executive order in January 2025 to establish a working group specifically studying digital assets, the market expected the group to quickly formulate a regulatory framework favorable to the development of Bitcoin. This would bring more stability and development opportunities to the Bitcoin market, thereby driving up the price of Bitcoin. However, in the period following the release of the executive order, the working group did not implement specific regulatory measures. The market’s expectations for the regulatory framework gradually faded, and as a result, the price of Bitcoin was impacted and experienced a certain degree of decline. This disparity between market expectations and actual implementation reflects the high sensitivity of the market to Trump’s policies, and also reveals the complexity of price fluctuations in the Bitcoin market. When investors face policy news, they often make investment decisions based on their expectations. When the actual situation does not meet expectations, it triggers market adjustments, leading to fluctuations in the price of Bitcoin.

3.2 Long-term Price Trend Changes

3.2.1 Overall Price Trend Analysis from 2024 - 2025

From 2024 to 2025, Bitcoin’s overall price trend has shown a significant upward trajectory. In September 2024, Bitcoin began its ascent from around $45,000. As Donald Trump expressed a supportive stance on cryptocurrency during his election campaign, market sentiment toward Bitcoin’s future gradually improved, driving a steady price increase. By November 2024, following Trump’s election victory, market confidence surged, propelling Bitcoin past the $75,000 mark. Entering 2025, Bitcoin continued its strong bullish momentum, approaching $110,000 in January and setting a new all-time high.

In this process, market sentiment has played a key role. Trump’s supportive remarks and policy commitments have greatly boosted investors’ confidence in the cryptocurrency market, attracting a large influx of funds into the Bitcoin market. Institutional investors have also been increasingly involved, with many of them increasing their allocation to Bitcoin, further driving up its price. The changing global macroeconomic environment has also had an impact on Bitcoin prices. Against the backdrop of increasing economic uncertainty and heightened volatility in traditional financial markets, Bitcoin, as an asset with hedging properties, has gained favor among more investors.

3.2.2 The Relevance to Policy Promotion

Trump’s policies have a close correlation with the long-term upward trend of Bitcoin prices. During his campaign, Trump promised to promote Bitcoin as a strategic reserve asset for the United States, triggering market expectations of large-scale purchases of Bitcoin by the U.S. government. This expectation has led investors to believe that the demand for Bitcoin will increase significantly, thereby driving up the price of Bitcoin. In January 2025, Trump signed an executive order to establish a digital asset research working group to assess the feasibility of establishing a national digital asset reserve. This move further strengthens the market’s expectations for Bitcoin to become a strategic reserve asset, providing strong support for the rise in Bitcoin prices.

Trump promises to simplify cryptocurrency regulation, creating a more favorable environment for the development of the Bitcoin market. In situations of regulatory uncertainty, the development of the Bitcoin market is often restricted, and investor participation decreases. Trump’s commitment to simplifying regulation reduces market uncertainty, attracts more investors to enter the Bitcoin market, promotes the development of the Bitcoin market, and further drives up Bitcoin prices. At the cryptocurrency summit hosted by the White House, Trump clearly expressed support for the development of the cryptocurrency market, sending a positive signal to the market, enhancing investor confidence in Bitcoin, and playing a role in driving long-term price increases for Bitcoin.

4. The impact on the cryptocurrency market structure and industry development

4.1 The Impact of Cryptocurrency Market Investment Sentiment

4.1.1 Changes in Investor Confidence

Trump’s policies and remarks on cryptocurrency have significantly affected investor confidence. During the 2024 election campaign, Trump proposed to promote Bitcoin as a strategic reserve asset for the United States, which greatly boosted investor confidence. Investors believe that once Bitcoin becomes a strategic reserve asset for the United States, its value will be officially recognized and supported, and its market position will greatly improve. This has led investors to be optimistic about the future of the cryptocurrency market, prompting them to increase their investments in cryptocurrencies.

In January 2025, Trump signed an executive order to establish a digital asset research working group, and in March signed an executive order to establish a strategic reserve for Bitcoin, further enhancing investor confidence. These measures demonstrate the Trump administration’s attention and support for the cryptocurrency industry, leading investors to believe that the cryptocurrency market will usher in a more stable and favorable development environment. In this scenario, investors are more willing to take risks, actively participate in cryptocurrency market investments, and drive market prosperity.

When there is a gap between market expectations and the actual implementation of Trump’s policies, investor confidence will also be shaken. In March 2025, Trump signed an executive order to establish a Bitcoin strategic reserve, which actually used the Bitcoin confiscated by the federal government as capital and did not have a new purchase plan. This is contrary to the market’s expectation of the government’s large-scale purchase of Bitcoin, leading to a significant drop in investor confidence and the price of Bitcoin. Investor confidence in the cryptocurrency market is also affected by other factors such as the global economic situation and regulatory policies. However, Trump’s policies and statements undoubtedly play an important role, becoming one of the key factors affecting investor confidence.

4.1.2 Dynamic Changes in Fund Inflows and Outflows

Trump’s policies have led to significant changes in the inflow and outflow of funds in the cryptocurrency market. Since 2024, when Trump expressed his support for cryptocurrencies during the election campaign, funds have been pouring into the cryptocurrency market. According to data compiled by the media, after Trump won the election in November 2024, the monthly net inflows of funds into Bitcoin and Ethereum exchange-traded funds (ETFs) in the United States hit record highs, with the Bitcoin ETF seeing a net inflow of $6.5 billion in November. Since Trump was elected President of the United States, US exchange-traded funds (ETFs) investing directly in Bitcoin have attracted nearly $10 billion in inflows, increasing the total assets of these funds to approximately $113 billion.

The trend of this influx of funds will continue in 2025. A series of executive orders signed by Trump in support of cryptocurrencies, as well as a cryptocurrency summit hosted by the White House, have further stimulated the influx of funds. Bitcoin funds from BlackRock and Fidelity have performed well in terms of fund inflows, reflecting institutional investors’ positive attitude towards the cryptocurrency market. When the market expects Trump’s policies to have a positive impact, a large amount of funds will flow in; however, when the policies actually implemented do not meet expectations, or when other unfavorable factors appear in the market, funds will flow out. In March 2025, after Trump signed the executive order on Bitcoin strategic reserves, the price of Bitcoin fell due to not meeting market expectations, showing clear signs of fund outflows. This indicates that Trump’s policy dynamics play an important guiding role in the flow of funds in the cryptocurrency market, and the changes in fund inflows and outflows also reflect the market’s reaction and expectations towards Trump’s policies.

4.2 The Impact of Cryptocurrency Industry Regulation

4.2.1 Change in Attitude of Domestic Regulation in the United States

The Trump administration’s attitude towards the cryptocurrency industry has undergone a significant shift. Prior to the 2024 election, Trump was skeptical of cryptocurrencies and even called Bitcoin a ‘scam’ in 2021. With strong support from the cryptocurrency industry during the 2024 election, Trump’s attitude made a complete 180-degree turn. During the campaign, he promised to simplify cryptocurrency regulation, promote Bitcoin as a strategic reserve asset for the United States, and support the establishment of a stablecoin framework. These commitments demonstrate his positive stance towards the cryptocurrency industry.

After being elected president, Trump quickly took action to support the industry. In January 2025, he signed an executive order establishing the President’s Working Group on Digital Asset Markets to assess the feasibility of establishing a national digital asset reserve and develop a regulatory framework. This move marked the beginning of the U.S. government’s strategic planning for the development of the cryptocurrency industry, bringing cryptocurrency regulation into a normalized and institutionalized track. The executive order signed in March to establish a strategic reserve of Bitcoin, as well as the first White House Cryptocurrency Summit, further demonstrate the Trump administration’s support and attention to the cryptocurrency industry. Trump expressed support for Congress to pass legislation to provide regulatory certainty for the cryptocurrency and digital asset markets, indicating that the U.S. government is committed to creating a more stable and predictable regulatory environment for the cryptocurrency industry.

The shift in regulatory attitude from focusing primarily on risk prevention to promoting development and emphasizing regulation has had a profound impact on the development of the cryptocurrency industry in the United States. It has provided more development opportunities for cryptocurrency companies, attracted more investment and innovation, and further promoted the development of the U.S. cryptocurrency market. It also poses new challenges to regulatory agencies, such as how to effectively prevent financial risks while promoting innovation, becoming an important issue that regulatory agencies need to address.

4.2.2 The Impact on Global Cryptocurrency Regulatory Strategies

As the global financial hub, the United States’ shift in cryptocurrency regulations has significantly influenced regulatory strategies worldwide. The Trump administration’s pro-crypto stance and policy initiatives have prompted other countries to reassess their own regulatory approaches. Some nations may follow the U.S. by easing crypto regulations to attract more cryptocurrency businesses and investments, fostering domestic industry growth. Regions such as the European Union and parts of Asia may accelerate their legislative processes, formulating more favorable regulatory frameworks to enhance their position in the global crypto financial landscape.

Some cryptocurrency regulatory issues promoted by the United States, such as the management of stablecoins, Bitcoin strategic reserves, etc., may become a template for global regulation. International institutions such as the International Monetary Fund (IMF) may strengthen international cooperation in the field of cryptocurrencies, promoting the formulation of globally unified cryptocurrency regulatory standards. This will help promote the healthy development of the global cryptocurrency market, reduce regulatory arbitrage, and financial risks. The cryptocurrency policy of the Trump administration may also intensify competition and volatility in the global cryptocurrency market. Some countries may be concerned that the United States’ leading position in the cryptocurrency field could impact their domestic financial markets and monetary policies, leading to a more cautious or conservative regulatory strategy. This may result in different regulatory models and development paths in the global cryptocurrency market, increasing market complexity and uncertainty.

5. Analysis of Disputes and Challenges

5.1 Suspected Insider Trading and Market Manipulation

5.1.1 Analysis of Potential Insider Trading Cases

During the process of Trump’s promotion of Bitcoin-related policies, there have been some notable potential insider trading cases. In March 2025, a few hours before Trump announced the inclusion of Bitcoin in the strategic reserve, an anonymous trader bet $200 million in Bitcoin, immediately cashed out, and made a profit of $6.8 million. This event has sparked widespread scrutiny in the market, with many believing it is highly likely to be a case of insider trading. If the trader had advance knowledge of the Trump administration’s decision and used this undisclosed information for trading, it would seriously undermine the fairness and transparency of the market.

The existence of insider trading puts ordinary investors at a disadvantage in the market. They cannot access the same information as insider traders, making it difficult for them to make accurate investment decisions, leading to a shake in the market’s trust foundation. In a fair market environment, all investors should trade based on the same information to ensure the normal operation of the market and the efficient allocation of resources. The occurrence of insider trading disrupts this fairness, turning the market into a tool for a few to seek private gains. This not only harms the interests of investors but also hinders the healthy development of the Bitcoin market. If insider trading is not effectively curbed, investors’ confidence in the market will gradually diminish, affecting market liquidity and activity, ultimately leading to market contraction.

5.1.2 Market manipulation controversy triggered by government policy regulation

The controversy between government policy regulation and Bitcoin market manipulation is increasingly prominent. The Federal Reserve openly opposes government-led hoarding of Bitcoin, emphasizing that ‘monetary policy should not be tied to cryptocurrency assets.’ This is because once the US government holds a large amount of Bitcoin, it may use its policy influence to control the price of Bitcoin, triggering controversy of ‘being both a referee and a player.’ The government can stimulate the rise in Bitcoin prices by issuing favorable policies, or suppress Bitcoin prices by tightening regulatory policies to achieve its specific policy objectives.

This kind of government intervention in the market disrupts the principle of free competition in the market, making it difficult for market prices to truly reflect the supply and demand relationship and intrinsic value of Bitcoin. The government plays a dual role as both regulator and participant in the Bitcoin market, and this dual identity leads to a lack of effective supervision and constraint in its behavior, making it easy to cause market instability. If the government artificially raises the price of Bitcoin through policy measures in order to enhance its influence in the field of cryptocurrency, it may attract a large number of investors to blindly follow suit, leading to the formation of market bubbles. Once the bubble bursts, it will bring huge losses to investors and also impact the entire financial market. Market manipulation will also affect the inherent nature of Bitcoin as a decentralized digital currency, weakening its credibility and competitiveness in the global financial market.

5.2 Questioning the Actual Effects and Economic Risks

5.2.1 The effectiveness of Bitcoin reserves in addressing inflation and debt issues

The Trump administration has included Bitcoin in its strategic reserves, with one of the goals being to address issues such as inflation and national debt through Bitcoin. Some American financial professionals have expressed doubts about this, believing that the significant price fluctuations of Bitcoin make it difficult to serve as a stable asset to tackle these complex economic issues. The price of Bitcoin has experienced drastic fluctuations in the past few years, ranging from tens of thousands of dollars to hundreds of thousands of dollars, making it difficult to predict the value of this highly volatile asset.

When facing inflation, the price of Bitcoin may not necessarily stabilize and rise, and it may even experience a significant decline. When the global economic situation is unstable and market panic intensifies, Bitcoin may be sold off like other risk assets, leading to a price crash. The total supply of Bitcoin is limited, only 21 million, which to a certain extent restricts its ability to address large-scale inflation and national debt issues. Compared with traditional strategic reserve assets such as gold, the market size of Bitcoin is relatively small, and there are certain limitations in liquidity, making it difficult to play an effective buffering role at critical moments. Therefore, there is still great uncertainty about whether Bitcoin reserves can effectively address inflation and national debt issues.

5.2.2 Potential Risks to US Dollar Credit and Global Financial Order

Professor Austin Campbell of the Stern School of Business at New York University pointed out that the Bitcoin-related measures of the Trump administration may actually pose a threat to the global value of the US dollar. As a decentralized digital currency, the development of Bitcoin may weaken the dominant position of the US dollar in the global financial system. With the increasing popularity and application scope of Bitcoin, more and more countries and investors may choose Bitcoin as an alternative asset, reducing their dependence on the US dollar. This will lead to a decline in the international reserve status of the US dollar, affecting the economic benefits the United States gains through dollar hegemony.

The development of the Bitcoin market may also pose potential risks to the global financial order. The lack of effective regulation in Bitcoin trading makes it susceptible to being used for money laundering, terrorist financing, and other illegal activities, posing a threat to global financial security. A large-scale collapse or crisis in the Bitcoin market could trigger chain reactions in the global financial markets, leading to instability in the financial system. The decentralized nature of Bitcoin conflicts with the centralized management model of traditional financial systems, which could exacerbate the fragmentation and chaos of the global financial system. Therefore, the Trump administration, in promoting the development of Bitcoin, needs to fully consider these potential risks and formulate reasonable policy measures to maintain the stability of the US dollar’s credit and the global financial order.

Conclusion

The development of the Bitcoin market also faces some risks and challenges. In addition to the uncertainty of regulatory policies, the Bitcoin market may also be influenced by factors such as technological innovation, market competition, and investor sentiment. With the continuous development of blockchain technology, new digital currencies or financial innovative products may emerge, posing challenges to the market status of Bitcoin. Fluctuations in investor sentiment may also lead to excessive speculation and bubbles in the Bitcoin market, increasing market instability. Therefore, the future development of the Bitcoin market needs to achieve a balance in policy support, regulatory compliance, technological innovation, and risk management to achieve sustainable development.