US Republican Presidential candidate Donald Trump made headlines with his appearance at the Bitcoin 2024 conference in Nashville on July 27. He addressed the crypto community with promises that could potentially change the landscape of Bitcoin ownership in the United States. Trump boldly stated that if elected, his administration would mandate the US government to keep “100%” of its Bitcoin holdings. This move was seen as a direct response to previous government sales of Bitcoin and a nod to the crypto community’s belief in holding onto their assets rather than selling.
Trump’s pledge for the US to hold onto all its Bitcoin holdings could have a significant impact on the crypto market. Currently, the US government holds a substantial amount of Bitcoin, with data showing 213,239 BTC ($14.87 billion) in its possession. By committing to keeping all these assets, Trump’s plan provides a bullish outlook for Bitcoin. This move could potentially remove a significant amount of Bitcoin from circulation, leading to scarcity and possibly driving up the token’s price. Additionally, as the US government holds the most Bitcoin among all nations, this decision could have ripple effects on the global crypto market.
Most of the US government’s Bitcoin holdings came from seizures made during investigations into the dark web marketplace Silk Road. The infamous marketplace, created by Ross Ulbricht, was a central hub for illegal activities. Interestingly, Trump also mentioned his intention to commute Ulbricht’s sentence if elected, further tying in his promises to the crypto community. However, it is unlikely that Ulbricht will be able to recover the substantial amount of Bitcoin seized during his case. This is due to Ulbricht forfeiting claims to these funds in 2022 to offset unpaid balances related to his legal troubles.
Before the Bitcoin conference, Trump had already signaled his support for Bitcoin and other cryptocurrencies. This led to speculation that a Trump victory in the US presidential elections could lead to unprecedented highs for Bitcoin. Financial institutions like Standard Chartered even predicted that Bitcoin could reach $150,000 by the end of the year if Trump were to win. Additionally, a Trump victory could bring about clearer and more favorable crypto regulations, departing from the US Securities and Exchange Commission’s (SEC) current regulatory approach, which has had a negative impact on the crypto market.
Trump’s bold promises at the Bitcoin conference have the potential to reshape the crypto market in the US and globally. His commitment to holding onto all government-owned Bitcoin, along with the promise of favorable regulations, could lead to an uptick in Bitcoin prices and a surge in investor confidence. However, the actual implications of these promises remain to be seen, and only time will tell if Trump’s vision for the future of Bitcoin will come to fruition.
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