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The cryptocurrency was trading near $70,000 on Monday, its highest level in six weeks after former U.S. President Donald Trump reaffirmed his support for cryptocurrencies over the weekend.
According to The Block’s price page, the world’s largest cryptocurrency was trading at around $69,800 at the time of writing, up 3.32% over the past 24 hours. Ether was up 4.28%, trading at $3,350, while Solana was up 5.9% over the past 24 hours, trading at around $193.
“Investor sentiment is strengthening as many politicians and economic stakeholders are now expressing positive stances on crypto,” Justin d’Anethan, head of APAC business development at crypto market maker Keyrock, told The Block. “The Bitcoin conference in Nashville was a long stream of respected speakers talking about the importance of crypto and the potential for further allocations to BTC. Of course, this is something many traders believe and want to get ahead of.”
At the Bitcoin 2024 conference in Nashville on Saturday, Republican presidential candidate Donald Trump pledged to create a “strategic bitcoin reserve” and stop the U.S. from selling off its existing holdings if elected in November. Trump also said he would fire current Securities and Exchange Commission Chairman Gary Gensler.
Meanwhile, Interview with The Block According to a report published over the weekend, Senator Cynthia Lummis plans to introduce legislation next week that would direct the U.S. Treasury to purchase 1 million bitcoins, or about $68 billion, over five years.
Loomis added that if the bill were to pass, the Treasury would have its own custody of bitcoin across “multiple geographic locations,” and that the government would keep the coins for at least 20 years unless they are sold “to reduce debt.”
“The continued belief that Republicans have a better chance of winning this year’s election than Democrats has led us to believe that a more accommodative monetary environment and a business-focused administration are needed,” d’Anethan said. “Tax cuts and potential rate cuts are broadly supportive of risk assets.”
Peter Chung, Presto’s head of research, said following the US election developments now through November is “more important than ever.”
“Short-term speculators’ positions were liquidated ahead of Trump’s speech as the market briefly plunged during the speech on a ‘news sell’ movement, as evidenced by the massive liquidations in the futures markets. As a result, short-term speculators shifted to long-term investors who understood the significance of the changes in US politics as they relate to Bitcoin,” Chung said.
“With the additional burden removed, the market is now free to reflect on not only Trump’s speech but also Lummis’ Bitcoin Strategic Reserve Bill,” Chung added.
Nick Ruck, head of growth at BitU Protocol, said traders are waiting for potential changes in interest rates and who will fill key positions if Trump is elected, particularly “the Federal Reserve and the Securities and Exchange Commission (SEC).”
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