Trump signs bill to end government shutdown! Bitcoin nearly breaks 100,000, with a total liquidation of 534 million dollars across the network.

The U.S. House of Representatives passed the final vote on the temporary budget allocation bill on Wednesday evening Eastern Time. The White House stated that President Trump hopes to sign the bill later today, ending the longest government shutdown in U.S. history. Bitcoin unexpectedly crashed, dropping to a low of $100,800, nearly falling below $100,000 again. In the past 24 hours, the total liquidation amount across the network reached $534 million, with over 136,000 people liquidated.

Trump's speech in Miami calls Bitcoin a superpower

(Source: X)

U.S. President Trump delivered a speech at the “U.S. Business Forum” held in Miami on Wednesday, urging America to embrace cryptocurrency and vowing to make the U.S. a “Bitcoin superpower” and the “cryptocurrency capital of the world.” Trump reminded that if Washington continues to hesitate, the U.S.'s leading position in the cryptocurrency industry will eventually be taken away by China.

“We gather here in Miami today to embrace a critically important industry,” Trump pointed out, noting that his administration has completely reversed Washington's long-standing hostility towards cryptocurrency, “I signed a historic executive order that officially ends the federal government's war on cryptocurrency. Cryptocurrency has been under siege, but now, the siege is over.”

Trump believes that the cryptocurrency industry is massive and supported by business leaders: “This is a big industry, really very big. Many excellent entrepreneurs around me are engaged in other industries, but they are also involved in the cryptocurrency field.” Trump then emphasized that cryptocurrency helps strengthen the position of the dollar: “This greatly alleviates the pressure on the dollar. It (cryptocurrency) brings many benefits, and we are diving into it.”

He immediately contrasted his position with that of the previous administration: “Biden is extremely hostile to cryptocurrencies. They hunt down those involved in cryptocurrency like a witch hunt. It's terrible. They are even being prosecuted.” Trump clearly stated in his speech: “We are making America a superpower in Bitcoin, becoming the global capital of cryptocurrency.” He also placed this vision alongside artificial intelligence, claiming, “America is the undisputed leader in the field of artificial intelligence.”

When discussing international competition, Trump warned: “Don't forget, if we don't push for the development of cryptocurrency with all our might, China will do it. They've already started, and they are watching us closely. Other countries are also catching up. If we mess this up - this is a huge industry.”

The market has not rebounded but has instead accelerated its decline

(Source: Trading View)

However, Trump's speech in Miami focused more on “position declaration” rather than presenting new specific measures; he did not announce any new timelines or directives to regulatory agencies. Bitcoin rapidly dropped after ten o'clock last night, at one point this morning falling to 100,800 USD, nearly breaching the hundred thousand dollar mark again. Before the deadline, it slightly rebounded to 102,245 USD, while Ethereum was reported at 3,428 USD, breaching the critical support of 3,400 USD.

(Source: Coinglass)

In the past 24 hours, the total liquidation amount across the network reached 534 million USD, with over 136,000 people liquidated, causing losses for investors who were optimistic about the rise expected from the U.S. government's restart. The scale of this liquidation indicates that the market's leverage ratio remains high, as many traders established bullish positions anticipating a rebound after the government's restart, but the market trend moved contrary to expectations, triggering large-scale forced liquidations.

A liquidation scale of 534 million USD is considered medium to large in a single day liquidation event. Even more shocking is the figure of 136,000 people being liquidated, which means an average liquidation amount of about 3,926 USD per person. This relatively small average liquidation amount indicates that many retail investors used high leverage to participate in trading, and their margin was relatively small, leading to rapid liquidation once the price experienced unfavorable fluctuations.

The reasons why the market has not rebounded and instead accelerated its decline may be multifaceted. First, “bad news is fully priced in” is an empirical rule rather than an absolute law; the market may sometimes continue to decline even after bad news is actually resolved, as the previous rebound has already exhausted the positive expectations. Second, although Trump's speech was friendly in tone, it lacked specific new policy measures and could not provide the market with substantial reasons to buy. Third, the macroeconomic environment remains unfavorable, with expectations for a rate cut by the Federal Reserve in December decreasing, weakness in U.S. tech stocks, and global geopolitical tensions, all of which suppress the performance of risk assets.

Bitcoin and the Trump Administration Restart Key Data

Bitcoin Current Price: 102,245 USD (Dangerously Close to 100,000 USD)

Current Price of Ethereum: 3,428 USD (fell below 3,400 USD)

24 Hour Liquidation: 534 million USD, 136,000 people affected

Trump's Speech Core: Bitcoin Superpower, Global Crypto Capital, Competing Against China

Substance of the Policy: The position is mainly declarative, with no new specific measures or timetable proposed.

Three Major Reasons Why Lifting the Suspension Does Not Equal Risk Removal

During the suspension period, multiple reviews by regulatory agencies such as the SEC and CFTC were forced to halt, and the release of important economic data that provides crucial references for the Federal Reserve was also suspended, amplifying policy uncertainty. After the government restarts, it will take time to handle these backlogged tasks, which may increase market uncertainty in the short term rather than reduce it.

This year, the White House has taken a series of “embracing cryptocurrency” actions, including using law enforcement to seize and confiscate cryptocurrencies to establish a “Bitcoin Strategic Reserve” and a “U.S. Digital Asset Inventory.” In addition, Trump signed the GENIUS Act on July 18 this year, which establishes a regulatory framework for stablecoins; broader market structure legislation is also in progress. It is worth mentioning that the Trump administration has clearly stated its refusal to issue a Central Bank Digital Currency (CBDC) in the United States and asserts that promoting cryptocurrency-friendly policies does not conflict with maintaining the dominance of the U.S. dollar.

Technically, Bitcoin has been repeatedly resisted above $107,000 and is currently testing the psychological level of $100,000. The 50-day moving average is forming a “death cross.” A death cross refers to the short-term moving average (usually the 50-day moving average) crossing below the long-term moving average (usually the 200-day moving average), which is an important bearish signal in technical analysis. If Bitcoin cannot stabilize above $107,000 in the near future, the death cross may form within the next few weeks.

If the U.S. government resumes liquidity replenishment, the chances of a technical rebound may increase. After the government restarts, federal agencies will resume procurement, payments, and various economic activities, which will inject liquidity into the market. In addition, government employees will regain their salaries, and consumer confidence may recover. These factors may gradually be reflected in the market in the coming days or weeks.

However, just like this drop, the market often moves in the opposite direction of the expectations of most retail investors. Investors should strictly control leverage and set stop-loss orders, patiently waiting for clarity in direction. When most people expect that the government's restart will bring a rebound, the market chooses to drop; when most people anticipate a surge in Moonvember, Bitcoin opts for sideways movement. This counter-consensus trend reflects the effectiveness of the market and is the fundamental reason why retail investors find it difficult to profit in the market.