Bitcoin Reserve Strategy: Is Donald Trump Quietly Preparing for a Crypto Power Move?

Share This Post

Bitcoin Reserve Strategy

The post Bitcoin Reserve Strategy: Is Donald Trump Quietly Preparing for a Crypto Power Move? appeared first on Coinpedia Fintech News

Following Bitcoin’s recent price jump and upcoming events like the FOMC meeting and CPI report are expected this month the market is in a mixed state. While everyone is eyeing an early announcement of Bitcoin Reserve plans, Macro expert Luke Gromen suggests President-elect Donald Trump



President



should hold off announcing plans for a US Bitcoin reserve on his first day in office.

Speaking to venture capitalist Preston Pysh, Gromen explained that revealing such a plan too soon could lead investors to front-run the government, driving Bitcoin prices higher before the US secures a position. According to Trump, this strategy will help them to stay ahead in creating a crypto powerhouse before China and other nations take over this trillion-dollar industry. 

Instead, Gromen advises Trump to quietly accumulate Bitcoin while expressing optimism for the asset. Once the reserve is built, Donald Trump could announce it publically, sparking a huge rally that boosts government holdings. 

In the current scenario, the Bitcoin reserve strategy is only a passing ball for political parties rather than a realistic plan, especially after the Fed’s negative comments on Bitcoin accumulation by the US govt. However, the market is expecting that Trump will push his policies aggressively after taking charge in the White House even if they meet political resistance. 

Polymarket Poll Sparks Bitcoin Reserve Speculation

A recent poll shows that 40% of people think President-elect Donald Trump might start a national Bitcoin reserve, which could mark a big change in how the U.S. views digital money. Many believe Trump’s administration might support Bitcoin as a key asset, especially since he’s spoken positively about it before. Supporters say this move could make the U.S. stronger financially and a bigger player in the global crypto market.

Challenges and Global Context

Trump, a former Bitcoin critic turned supporter, has indicated a pro-crypto stance, suggesting the US hold seized 200,000 Bitcoins as an investment and even hinting at using crypto to address the national debt. Moreover, experts suggest keeping these assets could stabilize Bitcoin’s price.

But, proposals like Senator Cynthia Lummis’s plan to buy one million Bitcoins face political resistance due to legal and security concerns. Some critics highlight Bitcoin’s price volatility and hacking risks as significant barriers. While countries like Bhutan and El Salvador have adopted Bitcoin on smaller scales, the U.S. could set a global trend if it formalizes a Bitcoin reserve. 

Bitcoin currently trades at $99,147. Bitcoin is in recovery mode from its recent losses and is expected to go much higher if it clears its resistance level of $100K.

Never Miss a Beat in the Crypto World!

Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.

FAQs

Which country has the most Bitcoin reserves?

As of now, the U.S. holds the most Bitcoin in reserves, primarily from seizures, with speculation that it may formalize a Bitcoin reserve.

How much Bitcoin is left unmined?

Around 2.1 million Bitcoins are left to be mined, with the final Bitcoin expected to be mined around 2140.

What are the risks of a U.S. Bitcoin reserve?

Legal concerns, price volatility, and security issues like hacking are major obstacles in formalizing a U.S. Bitcoin Reserve.

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Solana Rally Stalls: Pullback To Key Support Signals Potential Correction

Solana’s strong rally is losing momentum as prices face a pullback, suggesting a potential correction toward the $2099 support level After a period of bullish gains, market dynamics and

Meta adopts ‘Community Notes’ for moderation, wins crypto community approval

Social media giant Meta is replacing its fact-checking program with a user-driven “Community Notes” system, according to a Jan 7 statement This move follows the model adopted by X

Garanti BBVA Kripto Partners With Bitstamp to Offer Crypto Services in Turkey

Garanti BBVA Kripto, a subsidiary of Turkey’s Garanti BBVA, has announced a partnership with Luxembourg-based cryptocurrency exchange Bitstamp to provide crypto trading services to its customers

Cardano (ADA) Price Prediction for January 8

The post Cardano (ADA) Price Prediction for January 8 appeared first on Coinpedia Fintech News Amid the ongoing market crash, Cardano (ADA) has turned bearish and is poised to continue its price

CFTC Chair Rostin Behnam Resigns Amid Anti-Crypto Exodus

Rostin Behnam, chairman of the US Commodity Futures Trading Commission (CFTC) announced his resignation on Tuesday, just a day after Michael Barr, Federal Reserve Board governor and vice chair for

Major Portuguese bank blocks fiat transfers to crypto platforms

Banco of Investimentos Globais (BiG), one of Portugal’s largest banks, started blocking fiat transfers to crypto platforms, according to a notification shared by Delphi Labs co-founder José