Trump Media invests $2.5 billion in Bitcoin: A big boost for the market?

Former President Donald Trump's media empire has once again caused a shock. A huge round of fundraising to build Bitcoin reserves has surprised institutional investors, rekindling interest at a time when the market is watching low price zones with thin trading volumes, ranging from $74,000 to $99,000.

As market volatility increases and the price discovery process is not yet finished, traders are preparing to embrace a new wave of orders along with the potential for significant disruptions in the coming months.

Trump Media commits to invest 2.5 billion dollars into Bitcoin reserves

Trump Media and Technology Group has just announced a $2.5 billion private fundraising round to establish a Bitcoin reserve — making them one of the companies with the largest Bitcoin purchase deals ever recorded.

This funding round involves around 50 institutional investors, marking a bold bet on the future of Bitcoin, right at a time when the asset is consolidating below its all-time high and the low price zones from $74,000 to $99,000 have yet to be tested.

CEO Devin Nunes stated in a press release:

"We see Bitcoin as the pinnacle tool of financial freedom and now Trump Media will hold cryptocurrency as an important part of its assets."

The company is currently operating platforms such as Truth Social and Truth+, planning to use its Bitcoin reserves as a hedge against the risk of being blocked from financial access, while also laying the groundwork for future financial technology integrations — including subscription payments and utility tokens.

The timing of the announcement, combined with the current technical situation of Bitcoin, is causing analysts to closely follow in order to detect fluctuations and new entry points as capital flow begins to return to the digital asset market.

The "memory zones" of the market are now being activated

The price of Bitcoin is fluctuating below its all-time high, but the real story lies in the zones that have yet to be tested.

According to the liquidity trading records over the past 4 years published by Alphractal, the important price zones from 74,000 to 99,000 dollars still have very low trading volume, creating a liquidity gap.

These are the zones where Bitcoin has previously moved too quickly or did not attract significant participation from investors.

bitcoinSource: AlphractalWhen institutional capital begins to return to the market — led by a commitment of $2.5 billion from Trump Media, low price zones with low trading volume may become "magnets".

This drives BTC up through a process of "technical filling", often facilitating quick movements through less traded zones such as $74,000, $77,000, $81,000, $89,000, and $99,000.

The significance of institutional capital for liquidity

Large investments like those of Trump Media often serve as both a support zone and a catalyst for market fluctuations.

Whether this company chooses a dollar-cost averaging strategy at the low price zone of 60,000 dollars, waiting for a retest of the zone at 70,000 dollars, or anticipating a breakout into the liquidity gap from 80,000 to 99,000 dollars, the market is likely to follow.

Similar to the historical buy-ins of Strategy, these purchases not only absorb the supply but also establish a long-term price foundation and drive the upward momentum.

Thus, it can be seen that the trust of the organization is returning, along with deeper liquidity and a clearer market trend.

Minh Anh

TRUMP1.63%
BTC0.56%
CHO8.71%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Share
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate app
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)