Trump’s Bitcoin announcement sparks unprecedented price surge
This month, traders who bet that former US President Donald Trump will spark a bitcoin price boom have seen the cryptocurrency explode back to life.
Due in large part to the “crazy” prediction made by Shark Tank billionaire Mark Cuban, the price of bitcoin has increased by nearly 20% since its low points in early July.
Wild rumors are now circulating that, following his disclosure of a JPMorgan bitcoin bombshell, Trump may declare he would establish a U.S. bitcoin strategic reserve during his highly anticipated speech at the Bitcoin 2024 conference in Nashville next week.
This announcement could set off a bitcoin price “instant moon.”
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In an email note to clients, Markus Thielen, CEO of institutional-focused analysis firm 10x Research, noted that there is “speculation that Trump might announce the launch of a U.S. bitcoin strategic reserve during the Bitcoin 2024 conference in Nashville.”
The note also highlighted how the price of bitcoin surged by nearly 1,900% during Trump’s first term.
Thielen suggested that the U.S. could strategically incorporate bitcoin into its reserves to diversify its portfolio and reduce reliance on traditional assets like gold and foreign currencies. He noted that the U.S. government currently holds around 212,000 bitcoin, worth approximately $15 billion, in contrast to its $600 billion worth of gold reserves.
Lark Davis, a bitcoin analyst and author of the Wealth Mastery newsletter, mentioned to his subscribers that Donald Trump may already be considering adding bitcoin to the U.S. balance sheet.
Earlier, Dennis Porter, the chief executive of the Satoshi Action Fund regulatory lobby group, posted on X that Trump will announce a USA bitcoin strategic reserve in Nashville, citing unnamed, anonymous sources.
Porter added that while people don’t believe the USA could implement a bitcoin strategic reserve, it is inevitable at this point.
A strategic reserve, such as the U.S.’s strategic petroleum reserve, is a store of assets kept on hand and designed to either be deployed in emergencies or to guarantee debt.
Simon Dixon, founder of the BnkToTheFuture investment platform, also posted on X, stating that he is getting more and more confirmations that these rumors may be true.
Ari Paul, chief investment officer at BlockTower Capital, estimated there is a 10-to-1 chance that the U.S. will establish a Bitcoin strategic reserve within the next four years. He suggested that it is plausible Trump might propose the idea, which would be very bullish for bitcoin in the medium term.
Paul elaborated that such a proposal from Trump could generate significant enthusiasm and support within the cryptocurrency community, potentially influencing market sentiment positively.
He also added that if Wall Street seriously believed in the possibility of a bitcoin strategic reserve, it could trigger a rapid increase in the bitcoin price, commonly referred to in the bitcoin community as “instant moon.” This reflects the expectation of a swift and substantial price surge, driven by heightened investor confidence and speculative momentum.
Furthermore, Bloomberg reported that Trump invited Bitcoin 2024 conference goers to a private fundraiser this week, with a seat at a round table event reportedly costing nearly $845,000.
The Washington Post reported that conference organizer David Bailey will host the fundraiser. Bailey, who has had multiple meetings with Trump, expressed that Trump’s speech at the event will be the most significant political event in Bitcoin’s history and a pivotal cultural moment for society.
El Salvador’s president, Nayib Bukele, used Bailey’s conference to declare that the nation would accept bitcoin as legal tender in 2021.
Regardless of the specifics, one thing is certain – the potential announcement from Trump has already caused a significant impact on the crypto market, with traders eagerly anticipating the outcome of his appearance at the Bitcoin 2024 conference.
