Bitcoin is currently utilized as a liquid proxy to hedge against a possible triumph by former President Trump, suggests a market analyst. This strategic positioning emerged from the perception that a Trump victory was initially underpriced, thus sparking interest in using Bitcoin as a hedge.
Given the current macroeconomic conditions, analysts believe that the rally lacks the necessary support to drive Bitcoin to an all-time high. The existing financial environment is not conducive to sustaining such a parabolic increase in its value.
The recent notable increase in Bitcoin’s value, dubbed the "Trump hedge" rally, reflects wider market sentiment concerning political uncertainties. Nonetheless, the analyst remains skeptical about its long-term potential amid the absence of robust macroeconomic catalysts.
