US Republican Presidential candidate Donald Trump recently attended the Bitcoin 2024 conference in Nashville, where he made promises to the crypto community. In his speech, Trump declared that if elected, his administration would enforce a policy mandating the US government to retain “100%” of its current Bitcoin holdings. This announcement was seen as a significant move towards supporting the cryptocurrency market, especially considering the government’s prior history of selling off its BTC holdings.
The US government currently holds a sizable amount of Bitcoin, totaling 213,239 BTC ($14.87 billion). Trump’s proposal to retain all these holdings could have a bullish effect on Bitcoin prices. The impact of the government’s past BTC sales on the token’s value is well-documented, and the prospect of removing a significant amount of Bitcoin from circulation for an extended period could lead to a surge in its price.
Most of the US government’s Bitcoin holdings were acquired through seizures from illegal activities, particularly from dark web marketplace Silk Road, founded by Ross Ulbricht. Trump’s vow to commute Ulbricht’s sentence if he becomes president adds another layer of controversy to the issue. However, due to Ulbricht’s forfeiture of the Bitcoin recovered from a previous hack, it is unlikely that he will be able to reclaim those funds even if he is released.
Trump’s vocal support for Bitcoin and cryptocurrencies prior to the conference had already sparked speculation about the potential impact on the market. Some analysts predicted that Bitcoin could soar to $150,000 by the end of the year if Trump wins the presidential elections. A Trump victory is also expected to bring about clearer and more favorable crypto regulations, a stark contrast to the SEC’s current approach, which has caused uncertainty in the market.
Trump’s promises regarding the US government’s Bitcoin holdings have the potential to significantly influence the cryptocurrency market. The decision to keep all Bitcoin holdings could boost prices and inject optimism into the crypto community. Additionally, a victory for Trump in the upcoming elections is anticipated to bring about positive regulatory changes that could further support crypto prices. However, the implementation of these promises and their actual impact on the market remains to be seen.
Leave a Reply