Future Market Value to Surpass Gold How Will Bitcoin Fare with Trumps Support

CoinWorld reported:
“Dou Wang” understands Bitcoin again. On July 28, Saturday Eastern Time, at the Bitcoin 2024 conference held in Nashville, Tennessee, USA, former U.S. President Trump attended and delivered a keynote speech, actively seeking voters in the cryptocurrency industry and raising campaign funds.
Advocating for all future bitcoins to be manufactured in the United States, the government to hold 100% of its owned bitcoins, creating a stablecoin framework… From publicly questioning to the intention to “make Bitcoin great again,” Trump’s change in attitude towards the cryptocurrency market has also led to a rise in Bitcoin prices, with market confidence and compliance seeming imminent. However, according to analysts, policy changes also come with many risks, and the future digital asset market is expected to continue to maintain a high volatility.
Trump’s “pie in the sky”
“This afternoon, 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 first said.
In his speech, Trump emphasized the increasing acceptance of cryptocurrencies by the Republican Party, contrasting with the tough regulatory stance of the Biden administration. “Never sell your Bitcoin,” Trump said, noting that since its inception, Bitcoin’s market value has been increasing and has become the ninth-largest asset in the global market, surpassing silver soon and gold in the future.
Regarding the position of Bitcoin, Trump pointed out that if he could return to the White House, he would ensure that the government holds 100% of its owned bitcoins and would list Bitcoin as a U.S. strategic reserve asset. He also promised to establish a presidential advisory committee for 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 rode a roller coaster. During his speech, Bitcoin experienced a V-shaped trend, first falling below the $67,000 mark; but 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 28, Bitcoin had surpassed $68,000, reaching a high of $69,370.
However, after reaching its peak, Bitcoin oscillated downward, with the price at $67,469 at 5 p.m., down 0.8% in 24 hours.
In the view of 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 U.S. strategic reserve asset, if realized, will have significant symbolic and practical implications. On the one hand, this will mark Bitcoin’s transition from a niche asset to a nationally recognized reserve asset, greatly enhancing its legitimacy and acceptance. Such a policy change gives Bitcoin a new status, significantly strengthening 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, will provide the nation with economic stability and financial security. This recognition can further consolidate Bitcoin’s position in the global financial system, prompting more central banks and governments worldwide to reassess their positions on Bitcoin and digital assets.
At the same time, Yu Jianing stated that with the compliance of policies, institutional investors’ interest in Bitcoin and Bitcoin ETFs will further increase. Many large institutions and asset management companies are still cautious about digital assets for risk management reasons. However, once Bitcoin is listed as a strategic reserve asset and receives national-level recognition and support, these institutions will be more motivated to invest in Bitcoin or related ETF products on a large scale, thereby injecting a large amount of capital into the market, enhancing the stability and maturity of the digital asset market.
Can it be realized?
From publicly denigrating Bitcoin as “air without any fundamental value” while in office to now “supporting” it, Trump’s change in attitude has not only raised a substantial amount of donations but also brought optimism to the cryptocurrency market, becoming one of the reasons for Bitcoin’s recent price fluctuations.
Looking at the past month, Bitcoin fell from around $63,000 in early July to a low of $54,000, then fluctuated upward, reaching above $68,000 on July 22. On July 25, the price of Bitcoin was around $64,000, and it achieved a new high on July 28 Beijing time.
However, according to most market participants, Trump’s fervent promotion of Bitcoin is merely a means to garner votes, and the high risks of Bitcoin cannot be ignored.
So, with Trump’s support, will Bitcoin really “surpass gold” in the future? Yu Jianing stated that Trump’s public support has boosted market confidence in Bitcoin, undoubtedly attracting more institutional investors and large financial institutions to enter the Bitcoin market, thereby bringing in a substantial inflow of funds in the long term, driving up the price of Bitcoin.
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. Despite Trump’s clear support, translating these commitments into specific policies and laws will still require complex legislative processes and coordination of interests from various parties.
If Trump were to be successfully elected and these policies implemented, they would also face challenges. On the one hand, the complexity of the legislative process cannot be underestimated. Policy implementation will also require inter-agency coordination, involving multiple regulatory bodies such as the Treasury Department, the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), among others. On the other hand, political and economic resistance cannot be ignored. Although Trump currently has some support in the digital asset community, his policy proposals may face opposition from traditional financial institutions, conservative lawmakers, and interest groups skeptical of digital assets. In addition, international trade disputes, geopolitical tensions, and other factors may affect the U.S. government’s priorities and enforcement efforts on digital asset policies.
It is worth noting that there are still strict restrictions on the use and trading of encrypted digital assets in our country. Yu Jianing emphasized that Bitcoin still faces risks such as uncertainty in regulatory environments in various countries, high volatility, as well as technical and security issues, even though 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 volatility in the future, and market fluctuations and long and short struggles are also important processes for forming new consensus.