Trump quickly pushes 200 million USD PAC, is the Bitcoin market about to change?

As David Bailey, an advisor on Bitcoin to U.S. President Trump, announced the formation of a political action committee (PAC) with up to $200 million, Bitcoin has once again become the focal point of the intersection between global finance and politics. However, just as Bitcoin was welcoming the imaginative space of policy dividends, warnings came from the market—analysts cautioned that Bitcoin's support is weak and price momentum is dwindling. Where will this tug-of-war between political funding and market confidence lead Bitcoin?

Bitcoin Political Influence Upgrade: $200 Million PAC Target and Controversy

David Bailey, founder of Bitcoin Magazine and BTC Inc., as well as a key advisor to the Trump campaign, recently publicly announced plans to launch a PAC for Nakamoto Holdings with a budget of $100 million to $200 million to maximize Bitcoin interests. He emphasized that this platform will focus on several policy demands such as enhancing the long-term value of Bitcoin, tax reform, and self-custody rights, even proclaiming a vision of "letting Bitcoin soar to $10 million."

Fairshake and other cryptocurrencies have invested over $130 million in the 2024 election, having a substantial impact on the American political landscape. Bailey undoubtedly hopes to further expand Bitcoin's influence in policy-making. However, industry insiders also warn that if public company funds are involved in political activities, they may face fiduciary responsibilities and legal risks, requiring careful operation.

Bitcoin price momentum is declining, market support is showing concerns

Despite positive news from the policy front, the price of Bitcoin has dropped by about 3.7% in the past week and is currently hovering around $114,000. Since reaching a high of $123,000 at the beginning of last month, BTC has continued to oscillate downward. Market analysts point out that weakened liquidity and unstable institutional demand are the main reasons putting pressure on the price.

According to CryptoQuant QuickTake data, the exchange-available Bitcoin inventory has fallen to just three months' supply, which should theoretically support prices. However, due to limited new buying interest, it has instead exacerbated market vulnerability. ETF inflows are volatile, and the lack of sustained institutional buying has led to amplified selling pressure. On-chain data also shows that large addresses are only slowly accumulating, unable to offset the selling pressure.

Expert Opinion: The Market Stabilization Still Requires New Demand to Enter

Analysts generally believe that Bitcoin's current key challenge lies in how to attract new capital inflows. When liquidity is constrained, any unilateral selling pressure can lead to severe price fluctuations. The outflow of ETF funds and the slowing pace of long-term investors increasing their holdings have resulted in a lack of solid support in the market. Only when institutional capital or large holders actively reposition themselves is there hope to reverse the downturn and restore Bitcoin's strong momentum.

Conclusion

Trump's Bitcoin advisor David Bailey's $200 million PAC plan symbolizes that Bitcoin is trying to gain greater influence on the U.S. policy stage. However, the market reality cannot be ignored - Bitcoin's short-term support is obviously weak, and price volatility has intensified. Whether Bitcoin can break through the dilemma in the future depends on whether policy dividends can be transformed into substantial capital inflows and whether market demand can explode again. Investors must closely monitor the dual variables of politics and the market to seize potential turning points.