At the Bitcoin 2024 conference in Nashville, US Republican Presidential candidate Donald Trump made a bold promise to the crypto community. He stated that if elected, his administration would mandate the US government to keep “100%” of the Bitcoin it currently holds or acquires. This promise sparked optimism among Bitcoin enthusiasts, as it would potentially remove a significant amount of Bitcoin from circulation.
Trump’s plan for the US government to hold all of its Bitcoin holdings could have a bullish outlook for the cryptocurrency. The US government currently holds 213,239 BTC, making it the government with the most Bitcoin holdings. By keeping these holdings intact, Trump’s administration could prevent any future sell-offs, which have affected Bitcoin’s price in the past.
Most of the US government’s Bitcoin holdings were acquired through seizures from the dark web marketplace Silk Road. The founder of Silk Road, Ross Ulbricht, forfeited claims to a significant amount of Bitcoin recovered from a hacker. Despite Trump’s promise to commute Ulbricht’s sentence if elected, it is unlikely that he will be able to retrieve these funds due to legal complications.
Trump’s support for Bitcoin and other cryptocurrencies has led to market predictions of potential unprecedented growth if he wins the US presidential elections. Some analysts, such as Standard Chartered, have predicted that Bitcoin could reach $150,000 by the end of the year if Trump is elected. This optimism is fueled by the expectation of clearer and more favorable crypto regulations under a Trump administration.
One of the key factors contributing to the positive market sentiment towards Trump’s Bitcoin promises is the expectation of clearer and more favorable crypto regulations. The current regulatory approach by the US Securities and Exchange Commission (SEC) has been criticized for its enforcement-heavy tactics, which have dampened the crypto market’s growth. A Trump victory could potentially lead to a more supportive regulatory environment for cryptocurrencies.
Donald Trump’s promises regarding Bitcoin at the Bitcoin 2024 conference have sparked optimism within the crypto community. His bold pledge to have the US government hold all of its Bitcoin holdings, combined with his support for cryptocurrencies, has raised expectations of potential growth and price surges in the market. However, it remains to be seen whether these promises will materialize if Trump is elected as the next US President.