Anika Begay
Amid recent market turmoil that pushed Bitcoin to a seven-month low of $49,000, former President Donald Trump has reached out to Twitch streamer Adin Ross in an effort to drum up support for a potential re-election campaign in November.
Trump Urges US Government to Maintain Bitcoin Reserves
In his speechTrump stressed the importance of the United States maintaining its reserves of Bitcoin and other cryptocurrencies, warning that failure to do so could allow China to seize the opportunity, as he has previously warned.
The former president stressed that Bitcoin is a modern currency with significant potential, citing individuals in his circle who support its value and urging the government to consider its benefits.
Drawing a parallel with artificial intelligence (AI), Trump stressed the need for the United States not to be left behind in the cryptocurrency space, as other nations such as China are rapidly advancing in this space.
Trump’s recent statements are based on his previous statements in Nashville in late July, where he promised to remove Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), as an initial move toward cryptocurrency adoption if re-elected president.
Furthermore, Trump reiterated his proposal to establish a national reserve of Bitcoin, positioning the main cryptocurrency as strategic reserve activities for the U.S. dollar. He affirmed the government’s commitment to retaining ownership of all Bitcoin rather than opting for a market sell-off, aligning with his position expressed together with Adin Ross.
Bitcoinist reported On Sunday, Senator Cynthia Lummis, a strong cryptocurrency advocate, introduced a bill on July 31 that would establish a “Bitcoin Strategic Reserve” program within the government.
Following the announcement of the development of this plan and his remarks on Bitcoin 2024 ConferenceSenators have received a significant influx of letters from constituents urging their support for Lummis’s bill, which has now been forwarded to the Senate Banking, Housing and Urban Affairs Committee, which will consider the legislation.
What’s next for BTC price?
While it is difficult to gauge the next significant move for the largest cryptocurrency on the market, BTC has managed to climb back above the $53,900 mark, with one analyst continuing to suggest a bullish forecast for Bitcoin’s price.
In the midst of this bullish thesis that is emerging after the sharp decline of the last 24 hours, technical analyst Mitchell has highlighted an interesting indicator that has historically signaled the start of powerful bull markets.
The indicator in question revolves around the dynamics of the costs of mining Bitcoin versus buying it directly from the spot market. Mitchell says that whenever the cost of mining a BTC using a medium-efficiency ASIC exceeds the cost of acquiring a BTC on the spot market, a parabolic bull market tends to emerge.
Historical cases from November 2022, September 2022, March 2020, December 2018, January 2016 and January 2015 underscore the importance of this scheme. However, it remains to be seen whether BTC can sustain the current recovery and regain previously lost support levels, preventing further price declines.
Featured image from DALL-E, chart from TradingView.com
