Bitcoin Encounters Hesitant Market as Trump Advocates for New Stimulus

Trump's Tariff Stimulus Plan: President Trump's proposed $2,000 tariff stimulus plan has reignited discussions about its potential to drive Bitcoin prices higher, similar to past fiscal measures that coincided with significant BTC rallies.

Long-Term Holder Behavior: Long-term Bitcoin holders have sold over 371,000 BTC since July, indicating a shift towards profit-taking and suggesting a possible transition into a consolidation phase rather than a continuation of the bull market.

Risk-Return Metrics Decline: Key risk-adjusted performance metrics, such as the Sharpe Ratio, have weakened, reflecting reduced institutional enthusiasm and caution among investors regarding Bitcoin's risk exposure.

Market Volatility and Outlook: Bitcoin is currently consolidating above $100,000, with mixed signals in the market. While historical patterns suggest potential upside from government spending, uncertainty remains due to selling pressure from long-term holders and macroeconomic conditions.