President Donald Trump has given assurances regarding the establishment of a U.S. Bitcoin strategic reserve. The move has sparked reaction from the financial community. This step makes cryptocurrency one of the strategic financial tools in the United States under the presidency of Donald Trump.
According to a report by Forbes, Trump’s BTC reserve plan comes at the heels of increasing acknowledgment of an imminent debt crisis in the United States, the subsequent possibility of the dollar’s collapse and subsequent efforts of investors to look for hedge investment. Besides, there is also geopolitical rivalry rising with reports that Russia may launch a ‘Bitcoin cold war’.
Nations across the world are competing to implement Bitcoin as a reserve asset in the world’s financial arena, giving it mixed reactions from various market analysts.
Trump’s proposal generates a positive market outlook
Donald Trump’s announcement about exploring Bitcoin as a strategic reserve has created a positive outlook. Trump compared this idea to the U.S. oil reserve and suggested he would pave the way to integrating Bitcoin into the nation’s financial portfolio.
We’re gonna do something great with crypto because we don’t want China, or anybody else … but others are embracing it, and we want to be ahead,
Trump responded while being interviewed by CNBC last week.
Market analysts have echoed Trump’s statement. In an interview with NDTV, Giottus CEO Vikram Subburaj said that Bitcoin is currently up and has sustained strong momentum. According to Vikram, Bitcoin may reach $110k before any pullback as long as it has good Spot ETF inflows, and it would be beneficial if there is a U.S. rate cut this week.
Bitcoin reaches new all-time-high
On Dec.16, 2024, Bitcoin touched $106,533 for the first time. The price surge was boosted by Trump’s confirmation that he will setup a Bitcoin reserve. While Bitcoin is currently oscillating near $106k at the moment, the world’s largest cryptocurrency, has risen by approximately 50% since early November.
BTC’s price could be propelled further by Trump’s favourable attitude towards the crypto industry. Support from Trump after the election has also helped build investor sentiment. Still, a growing number of investors anticipate new policies supporting cryptocurrencies, which has already enhanced Bitcoin’s position.
Other aspects have also enhanced the crypto market. Some of these factors include the recent announcement that MicroStrategy has joined the Nasdaq 100 index. The established corporate Bitcoin investor is highly credited for boosting BTC’s institutional interest.
The data from CoinGecko shows that the total crypto market cap has surpassed $3.80 billion and is almost two times higher in 2024. Furthermore, BTC’s dominance is high, supported by inflows from retailers and institutions.
While markets await further details of Trump’s Bitcoin reserve plan, analysts are optimistic that BTC will hit new levels. Some view Trump’s pro-crypto actions as a process of bringing crypto into the mainstream in the United States. Trump’s move as a step toward mainstream adoption of cryptocurrencies in the U.S.
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