During a challenging market period where Bitcoin hit a seven-month low of $49,000, former President Donald Trump interacted with Twitch Streamer Adin Ross to gather support for a possible re-election bid coming up in November.
Trump’s Encouragement for US Bitcoin Reserves
In his recent statement, Trump stressed the importance of the United States retaining its Bitcoin and other cryptocurrency reserves to prevent China from taking advantage, echoing his previous warnings. He acknowledged Bitcoin as a modern currency with great potential, citing supporters within his circle endorsing its value and urging the government to explore its advantages.
Comparing it to artificial intelligence (AI), Trump emphasized the need for the US not to fall behind in the crypto realm, as countries like China are rapidly progressing in this area.
Trump’s recent comments follow his earlier promises in Nashville at the end of July, where he pledged to replace Gary Gensler, the Chair of the US Securities and Exchange Commission (SEC), as a step towards embracing crypto adoption if he were to be re-elected as President. He also reiterated his idea of creating a national Bitcoin reserve, positioning the primary cryptocurrency as a strategic asset for the US dollar.
Additionally, Senator Cynthia Lummis, a strong advocate for cryptocurrencies, introduced a bill on July 31 to establish a “Strategic Bitcoin Reserve” program within the government, receiving significant constituent support and now under consideration by the Senate Committee on Banking, Housing, and Urban Affairs.
Future Bitcoin Price Trends
While predicting the next move for Bitcoin’s price is challenging, BTC has moved back above $53,900, with one analyst maintaining a bullish outlook on its price trajectory. The analyst highlighted an indicator indicating the start of strong bull markets, centered around mining Bitcoin versus purchasing it directly from the spot market, historically signaling the emergence of bullish trends.
Past instances in November 2022, September 2022, March 2020, December 2018, January 2016, and January 2015 highlight the significance of this trend. The sustainability of the current recovery by BTC and its ability to reclaim lost support levels will determine whether further price declines can be avoided.
Featured image from DALL-E, chart from TradingView.com
