Bitcoin has experienced a notable recovery, rising 4.3% to reach $67,000 as traders anticipate former U.S. President Donald Trump’s upcoming speech at the Bitcoin 2024 conference in Nashville, Tennessee. The event, scheduled for July 27, has generated significant buzz in the crypto community.
Market Sentiment and Futures Positions
According to Markus Thielen, CEO of 10x Research, traders are hesitant to short Bitcoin going into the weekend due to high expectations surrounding Trump’s potential announcements. In a July 25 analyst note, Thielen suggested that Trump might unveil plans for a strategic Bitcoin reserve if he is re-elected in the November presidential election.
“Because if Trump announced a strategic reserve, Bitcoin would gap higher,” Thielen told Cointelegraph, indicating that such an announcement could lead to a significant price surge. This anticipation has led futures traders to favor long positions heavily. CoinGlass data indicates that even a minor pullback to $65,000 could jeopardize $1.11 billion worth of long positions.
Political Influence and Crypto Lobby
Thielen pointed out that Trump is likely aware of the influential crypto lobby, which has raised $150 million for the Crypto Super PAC. This financial backing underscores the growing political clout of the cryptocurrency sector.
As of the time of publication, Bitcoin is trading at $66,985, marking a 4.42% increase over the past 24 hours, according to CoinMarketCap.
Potential Strategic Reserve and Market Impact
Thielen also highlighted that the U.S. Treasury holds gold reserves valued at $600 billion, while the government has seized Bitcoin worth $15 billion. He speculated that Trump might propose increasing the Bitcoin reserve to a significant percentage of the gold reserves, possibly around 10% or more.
“Trump could indicate his intention to increase this ratio to about 10% of the gold reserves, if not higher,” he stated. Thielen believes that even hinting at such a move could spark a bullish run in the market well before the November election.
Feasibility of Bitcoin as a Reserve Asset
Recently, Cointelegraph reported on asset manager Bryan Courchesne’s views on the feasibility of Bitcoin as a reserve asset. Courchesne acknowledged the challenges but noted that it is not impossible. He suggested that the Department of Justice could transfer confiscated Bitcoin to the Department of the Treasury, facilitating the accumulation and long-term holding of the asset by the Treasury.
As anticipation builds ahead of Trump’s speech, Bitcoin’s price movement reflects the market’s cautious optimism. Traders and investors will be closely watching for any significant announcements that could further influence Bitcoin’s trajectory in the lead-up to the 2024 U.S. presidential election.
