$Trump Media & Tech(DJT.US)

Recently, many people are discussing Trump's DJT (Trump Media & Technology Group) planning to invest $2.5 billion to enter the Bitcoin field. Friends and communities are asking: 'Can this push Bitcoin to $120,000?' As an ordinary investor who has been following the crypto market for years, I'd say: It might rise, but don't be blindly optimistic.

First, while $2.5 billion seems like a lot, Bitcoin's circulating supply is actually limited. Many early coins are held long-term, and the actively traded coins are far fewer than the total supply. So, a large inflow of funds can indeed drive up prices. Especially now, with market sentiment already optimistic, politically-backed financial moves like this are more likely to be amplified.

Second, after Trump's re-election, he publicly supported cryptocurrencies, clearly stating he wouldn't ban Bitcoin and opposed central bank digital currencies, believing they threaten personal privacy and property rights. He also said the U.S. should lead globally in crypto. These policy signals have made the market react positively, expecting a new wave of growth in the crypto market under his leadership.

However, reality is more complicated than imagination.

✅ The market has already priced in some of the positives. Bitcoin and related stocks have risen recently, but after news breaks, there's often a 'buy the rumor, sell the news' effect, leading to short-term pullbacks.

✅ To push Bitcoin to $120,000, besides news, sustained large-scale funding is needed. $120,000 is about 9% higher than the current price, requiring billions in new buy orders. Only with more institutional funds—like pensions and sovereign wealth funds—entering the market can prices rise steadily, which also depends on better regulation and macro environment.

✅ Historically, Bitcoin's surges during bull markets have been massive, but they were driven by retail FOMO and loose liquidity. The current rally hasn't reached the frenzy stage yet. While $120,000 is plausible, it also feels like painting an overly optimistic picture.

I believe DJT's $2.5 billion is a spark, not the engine. It can boost market sentiment, but for Bitcoin to truly reach $120,000, more funding and policy support are needed.