CoinWorld reported:
Donald Trump, the former President of the United States, attended and delivered a keynote speech at the Bitcoin 2024 conference held in Nashville, Tennessee on Saturday, July 28th, Eastern Time. He actively sought the support of voters in the cryptocurrency industry and raised campaign funds.
Advocating for all future bitcoins to be made in the United States, the government to hold 100% of the bitcoins it owns, and the creation of a stablecoin framework… From publicly questioning to intending to “make Bitcoin great again,” Trump’s change in attitude towards the cryptocurrency market has also led to a rise in the price of Bitcoin, and market confidence and compliance seem to be within reach. However, according to analysts, policy changes also come with many risks, and the digital asset market is expected to continue to maintain a high level of volatility.
“Today, I will outline my plan to ensure that the United States becomes the global capital of cryptocurrency and the Bitcoin superpower of the world, and we will achieve this goal,” Trump said first.
In his speech, Trump emphasized the growing acceptance of cryptocurrencies by Republicans, contrasting with the tough regulatory stance of the Biden administration. “Never sell your Bitcoin,” Trump said, noting that the value of Bitcoin has been increasing since its inception, making it the ninth-largest asset in the global market, soon to surpass silver and eventually gold.
Regarding the status of Bitcoin, Trump pointed out that if he could return to the White House, he would ensure that the government holds 100% of the bitcoins it owns and would list Bitcoin as a strategic reserve asset of the United States. He also promised to establish a presidential advisory committee on the cryptocurrency industry, create a stablecoin framework, and call for a reduction in law enforcement efforts.
The trend of Bitcoin also followed Trump’s statements and went on a “roller coaster” ride. During his speech, Bitcoin experienced a V-shaped trend, first falling below the $67,000 mark; however, by the end of the speech, when Trump announced the Bitcoin strategic reserve plan, it violently surged, recovering all losses. As of 10 a.m. on July 28th, Bitcoin had surpassed $68,000, reaching a high of $69,370.
However, after reaching its peak, Bitcoin fluctuated downward, with the price of Bitcoin at $67,469 at 5 p.m., a 0.8% decrease within 24 hours.
According to Yu Jianing, Co-Chair of the Blockchain Special Committee of the China Communications Industry Association and Honorary Chairman of the Hong Kong Blockchain Association, Trump’s proposal to list Bitcoin as a strategic reserve asset of the United States, if realized, would have significant symbolic and practical implications. On the one hand, this would signify a shift for Bitcoin from a niche asset to a nationally recognized reserve asset, greatly enhancing its legitimacy and acceptance. This policy shift has given Bitcoin a new status, significantly boosting market confidence in its long-term value.
On the other hand, as a strategic reserve asset, Bitcoin, together with traditional reserve assets such as gold and foreign exchange reserves, would provide the country with economic stability and financial security. This recognition may further consolidate Bitcoin’s position in the global financial system, prompting more global central banks and governments to reevaluate their positions on Bitcoin and digital assets.
At the same time, Yu Jianing stated that with regulatory compliance, institutional investors’ interest in Bitcoin and Bitcoin ETFs is expected to increase further. Many large institutions and asset management companies are still cautious about digital assets due to risk management reasons. However, once Bitcoin is listed as a strategic reserve asset and receives national recognition and support, these institutions will be more motivated to purchase Bitcoin or related ETF products on a large scale, injecting a significant amount of funds into the market, enhancing the stability and maturity of the digital asset market.
Can it be achieved?
From publicly disparaging Bitcoin as “air with no fundamental value” while in office to now “endorsing” it, Trump’s change in attitude has not only allowed him to raise a significant amount of donations but has also brought optimism to the cryptocurrency market, becoming one of the reasons for Bitcoin’s recent price fluctuations.
Over the past month, Bitcoin has fallen from around $63,000 in early July to a low of $54,000, then oscillated upwards, reaching above $68,000 on July 22nd. On July 25th, the price of Bitcoin was around $64,000, and on July 28th, it achieved a new high.
However, for most market participants, Trump’s enthusiastic promotion of Bitcoin is just a means of garnering votes, and the high risks of Bitcoin cannot be ignored.
So, with Trump’s support, will Bitcoin really “surpass gold” in the future as he claims? Yu Jianing said that Trump’s public support has boosted market confidence in Bitcoin, undoubtedly attracting more institutional investors and large financial institutions into the Bitcoin market, leading to a long-term influx of significant funds and driving up Bitcoin prices.
However, the policy changes mentioned by Trump also come with many risks, uncertainties, and remain the main theme of the Bitcoin market. Yu Jianing pointed out that the most important thing is the complexity and uncertainty of policy implementation. Although Trump has expressed clear support, translating these commitments into specific policies and laws still requires complex legislative procedures and coordination of multiple interests.
If Trump can successfully be elected and implement these policies, they will also face challenges. On the one hand, the complexity of the legislative process cannot be underestimated. The implementation of policies will also require interdepartmental coordination, involving multiple regulatory agencies such as the Treasury Department, the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), etc. On the other hand, political and economic resistance cannot be ignored. Although Trump now has a certain amount of support in the digital asset community, his policy proposals may face opposition from traditional financial institutions, conservative legislators, and interest groups skeptical of digital assets. In addition, international trade disputes, geopolitical tensions, etc., may also affect the priority and enforcement of the U.S. government’s digital asset policies.
It is worth noting that there are still strict restrictions on the use and trading of encrypted digital assets in China. Yu Jianing emphasized that Bitcoin still faces risks such as regulatory uncertainty in various countries, high volatility, and technical and security issues, although Bitcoin’s technology is relatively mature, infrastructure such as digital asset trading platforms and wallets still face security threats. It is expected that the digital asset market will continue to maintain a high level of volatility in the future, and market fluctuations and long and short games are important processes for the formation of new consensus.
