Donald Trump, the US Republican Presidential candidate, recently attended the Bitcoin 2024 conference in Nashville on July 27. During his appearance, Trump made bold promises to the crypto voters in attendance regarding the US government’s Bitcoin holdings. He stated that if elected, his administration would enforce a policy mandating the US government to retain “100%” of the Bitcoin it currently holds or acquires. This promise comes as a surprise, considering the government’s history of selling off some of its Bitcoin holdings, with the most recent sale taking place in April.
Trump’s commitment to having the US government hold all of its Bitcoin holdings could have a significant impact on the market. Given that the US government currently holds 213,239 BTC, which amounts to $14.87 billion, the prospect of these coins being kept off the market for an extended period could lead to a bullish outlook for Bitcoin. Historically, the US government’s BTC sales have influenced the token’s price, and by removing a substantial amount of Bitcoin from circulation, Trump’s plan could further drive up its value.
It is crucial to note that most of the US government’s Bitcoin holdings were obtained through seizures from the dark web marketplace Silk Road, which was created by Ross Ulbricht. Interestingly, Trump also mentioned his intention to commute Ulbricht’s sentence if he were to be elected. However, even if Ulbricht is released, the 50,591 BTC reportedly recovered from a hacker who stole funds from him may remain inaccessible to him. This is due to Ulbricht forfeiting claims to these funds in 2022 to offset an outstanding money judgment.
Prior to the Bitcoin 2024 conference, Trump had already expressed his support for Bitcoin and other cryptocurrencies. This has led to speculation that Bitcoin’s price could surge to unprecedented levels if Trump emerges victoriously in the US presidential elections. Financial institutions like Standard Chartered have even made bold predictions, suggesting that Bitcoin could reach $150,000 by the end of the year if Trump is elected. Additionally, a Trump win is anticipated to bring about clearer and more favorable crypto regulations, which could positively impact the overall market sentiment.
The current regulatory environment, particularly under the US Securities and Exchange Commission (SEC), has left a negative mark on the crypto market. The agency’s regulation by enforcement approach has created uncertainty and hindered the growth of the crypto industry. However, a potential Trump victory could herald a shift towards more transparent and favorable crypto regulations. This would not only benefit market participants but also contribute to the mainstream adoption of cryptocurrencies.
Donald Trump’s promises and commitments regarding Bitcoin at the Bitcoin 2024 conference have sparked both optimism and speculation within the crypto community. The prospect of the US government holding onto its Bitcoin holdings, along with the potential for clearer regulatory frameworks under a Trump administration, could have a profound impact on the future of Bitcoin and the broader cryptocurrency market. As the presidential election draws nearer, all eyes will be on how these promises materialize and shape the evolving crypto landscape.