bull market
How Trump’s Promises Could Influence BTC $250k forecast
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2 months agoon
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adminAs analysts predict Bitcoin could reach $250K, how might Trump’s promises influence this potential? What should you be watching for in the coming months?
Trump triumphs
Donald Trump is back in the Oval Office, officially winning the 2024 U.S. presidential election as the 47th president. After a high-energy election night celebration at Mar-a-Lago with guests including Elon Musk and Robert F. Kennedy Jr., digital asset markets surged in response.
Bitcoin (BTC) rocketed past $75,000, reaching a fresh all-time high, while crypto-linked stocks like Coinbase and MicroStrategy saw strong after-hours gains.
For crypto supporters, Trump’ win signals more than just another GOP presidency, especially as he has made bold commitments to protect crypto, a notable departure from the past, when Trump’ stance on digital assets was anything but warm.
Moreover, with Trump’ Republican allies securing a Senate majority, the path is now open for the policies he hinted at throughout his campaign—policies that could reshape the future of crypto in both the U.S. and globally.
So, what promises has he made, and what should we expect from his term? Let’s find out.
Trump’s promises to the crypto industry
Bold vision for a national crypto stockpile
One of Trump’ biggest promises to the crypto world is to create what he calls a “strategic national crypto stockpile.” In simple terms, Trump aims to prevent the government from auctioning off seized Bitcoin, instead holding onto it as a national asset.
Trump believes that, just as countries hold reserves of gold or oil, the U.S. should secure a portion of Bitcoin to hedge against future financial uncertainties.
Currently, the U.S. government often auctions off Bitcoin seized from criminal cases, such as after the Bitfinex hack, but Trump has suggested putting a halt to these sales.
This promise is crucial, given that the U.S. Marshals Service has regularly auctioned Bitcoin holdings, sometimes causing temporary market dips. Earlier this year, Germany’s sale of hundreds of millions in seized Bitcoin led to similar price swings.
While Trump hasn’t provided a concrete plan for how this reserve would be managed, some view it as a step toward positioning the U.S. as a global crypto leader.
Creating a strategic Bitcoin reserve
One of Trump’ more intriguing promises is to establish a “strategic Bitcoin reserve” for the U.S. His idea is to retain Bitcoin seized from criminal activities, rather than auctioning it off, to gradually build a substantial national Bitcoin reserve.
This proposal gained further traction when Senator Cynthia Lummis introduced a bill to create a “Bitcoin strategic reserve,” aiming to accumulate one million BTC over five years as a hedge against the national debt.
If realized, this reserve could signal a shift in the U.S. approach to crypto, positioning Bitcoin as a strategic asset on par with gold or foreign currency reserves.
Promise to fire SEC Chair Gary Gensler “on day one”
Trump has also set his sights on the U.S. Securities and Exchange Commission, pledging to fire its current chair, Gary Gensler, on his first day in office.
Appointed by President Joe Biden, Gensler has led an aggressive crackdown on the crypto industry, initiating over 100 enforcement actions against crypto companies for alleged securities violations since he
Gensler’ stance — that much of the crypto industry falls under SEC jurisdiction — has sparked frustration among industry players, who argue they need clearer guidelines, not constant lawsuits.
However, Trump’ promise may not be as straightforward to execute. While the president can appoint the SEC chair, dismissing one requires valid grounds, like neglect or inefficiency, due to the SEC’ independent status.
Legal experts caution that firing Gensler “on day one” could prompt a lengthy review and may not happen as swiftly as Trump suggests.
Still, if Trump does manage to appoint a new SEC chair, it could mark a shift toward more crypto-friendly policies — though how much freedom the new leadership would truly have remains uncertain.
A national push for Bitcoin mining
Another bold promise from Trump is his call to ensure that all remaining Bitcoin is mined within the U.S. He envisions Bitcoin mining as “Made in the USA,” aiming to establish America as a global hub for the industry.
This vision was echoed during a private Mar-a-Lago meeting with key figures in U.S. crypto mining, including executives from major companies like Riot Platforms, Marathon Digital, and Core Scientific.
Trump’ goal aligns with his broader agenda of “energy dominance” for the U.S., believing that Bitcoin mining could boost energy production and decrease reliance on foreign energy sources.
However, the path to this goal is challenging. Bitcoin mining is decentralized by nature, relying on thousands of miners across the globe. Centralizing it within one country would contradict the decentralized ethos on which Bitcoin was built.
Moreover, about 90% of Bitcoin’ total supply has already been mined, leaving only a small yet symbolically significant portion — around 10% — that Trump hopes to bring under U.S. control.
Stopping the central bank digital currency development
Trump has also pledged to block any progress toward a central bank digital currency in the U.S. He made his stance clear: “There will never be a CBDC while I’m president”, citing that CBDCs pose a potential threat to financial privacy.
Unlike decentralized cryptocurrencies like Bitcoin, a CBDC would be fully controlled by the government, potentially allowing for extensive surveillance of citizens’ transactions.
Trump’ position aligns with other Republican leaders, such as Ron DeSantis, who recently signed a bill in Florida to limit CBDC use within the state.
Opposition to CBDCs is also building in Congress. Representative Tom Emmer introduced the CBDC Anti-Surveillance State Act, aiming to prevent the Federal Reserve from issuing a CBDC without congressional approval.
The right to self-custody
Trump has also pledged to enshrine self-custody rights for crypto users into federal law, reinforcing the principle that “not your keys, not your coins” should be protected by the U.S. government.
Self-custody allows crypto holders to manage their private keys independently, ensuring they fully control their digital assets without relying on third parties like exchanges.
This promise aligns with recent legislative efforts by Republican Senator Ted Budd, who introduced the Keep Your Coins Act in 2023. The bill aims to safeguard Americans’ ability to transact with self-hosted crypto wallets, making it harder for regulators to impose restrictions on self-custody.
However, the proposal has sparked debate. Critics argue that self-custody could enable bad actors to evade anti-money laundering regulations, a concern highlighted by Senator Elizabeth Warren’ 2022 Digital Asset Anti-Money Laundering Act, which advocates for tighter controls.
While the crypto community largely views self-custody as an essential right, questions remain about how such laws might affect the balance between personal freedom and regulatory oversight.
A crypto-friendly advisory council
One of Trump’ more structural promises is to establish a dedicated “crypto advisory council” to guide his administration’s approach to crypto policy.
The goal of this council would be to create clear, industry-friendly regulations that support crypto growth rather than stifle it.
As Trump puts it, he wants “the rules to be written by people who love your industry, not hate it,” ensuring that crypto policies reflect a deep understanding of the industry’s needs and challenges.
Many industry insiders have voiced concerns that current regulations lack clarity, making it difficult for companies to operate within legal boundaries.
However, setting up such a council presents its own challenges, such as ensuring a diversity of perspectives and maintaining unbiased oversight.
Commuting Ross Ulbricht’s sentence
In a more controversial promise, Trump has vowed to commute the sentence of Ross Ulbricht, founder of the Silk Road marketplace.
Ulbricht, a first-time nonviolent offender, received a double life sentence plus 40 years without parole—a punishment many view as excessively harsh. Silk Road, the darknet marketplace he created, facilitated the trade of illegal goods, from drugs to weapons, with Bitcoin as the primary currency.
Ulbricht’ case has become a rallying point within the crypto and libertarian communities, where advocates argue that his sentence was disproportionate to the nature of his crime.
Critics, however, contend that his involvement in Silk Road fueled illegal activities and harmed individuals, making any consideration of leniency a sensitive issue.
What to expect from Trump’s crypto term
Recent tweets from crypto analysts reflect a mood of optimism as Trump’ presidency begins.
Michaël van de Poppe, a prominent crypto analyst, describes the current state of crypto as the end of the “longest and heaviest Altcoin bear market.”
He suggests we’re on the brink of a new “Dot.com bubble in Crypto,” hinting that this cycle could “go way higher than we all expect.”
If this outlook proves accurate, Trump’ pro-crypto stance could pave the way for a strong market rebound, benefiting from a more supportive regulatory environment.
Meanwhile, technical analyst Gert van Lagen forecasts that Bitcoin is on its “final ascent,” with a target of $250,000 by February next year.
He points to the recent reversal of the 10-2 yield curve — a classic precursor to recessions — as a sign that economic conditions could fuel a BTC rally.
For now, the industry watches to see if Trump’s bold promises can translate into action. If he delivers, the U.S. could emerge as a leader in crypto adoption, creating jobs and establishing financial alternatives that could leave a lasting mark on the entire crypto space.
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Cathie Wood, who is the CEO and chief investment officer of Ark Investment, made a prediction during an interview with Bloomberg, suggesting that Bitcoin will hit a price of $1 million by 2030.
In the conversation on Dec. 20, Cathie Wood pointed towards Bitcoin’s (BTC) fixed supply of 21 million cap as the key denominator which will drive the asset’s value. She brought to light the scarcity of BTC as more than 19.5 million BTCs have already been mined, which she says have increased the institutional investor’s hunger for the asset.
“Bitcoin is really the first of a new asset class, and it will be the largest opportunity of them all,” Wood stated. As a result of this increasing institutional adoption and supply-demand dynamic, she argues that the likelihood of BTC reaching $1 million is now considerably higher. Referencing Ark Investment’s Big Ideas 2023 research report, Wood highlighted the asset’s inherent scarcity as a key driver of its growing demand.
Responding to criticism of BTC’s speculative character, Wood drew parallel to gold, with both acting as stores of value. Also, she noted that BTC’s annual supply growth rate has recently fallen to 0.9%, lower than gold’s long-term average supply growth rate of 1%, meaning that BTC is more scarce than gold.
Wood said that while gold could lead to increasing supply in a rising price environment, BTC cannot due to its decentralized mechanism. “Like gold, Bitcoin is secured by its scarcity, but unlike gold it’s backed by the largest computing system in the world, making it the most secure network in the world,” she explained. It is this mathematical scarcity along with its decentralized and rules-based design that differentiates BTC as a radically new era financial asset, Wood claimed.
Wood largely credits the sudden boom in digital asset adoption to the COVID-19 pandemic, which she says has “turbocharged” a period of financial self-education by younger investors whose personal standards for accreditation traditionally fall short. This change has been also documented in statistics; where 63% of people invested in cryptocurrency in 2021 during the pandemic, with the bulk of adopters being millennials and Gen Z.
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American HODL
Buying Bitcoin Is Easy, HODLing Is the Hard Part
Published
5 days agoon
December 18, 2024By
adminHODLing bitcoin is so simple, yet it’s one of the most difficult and challenging things to do.
HODLing bitcoin is a choice. You have to wake up every day and choose to continue HODLing BTC. When you have every reason to sell bitcoin, you have to continue HOLDing. This is where most people fail.
The anxiety of losing money kicks in. The fear of being wrong becomes a cloud over your head and you start to wonder if you’re wasting your time and ruining your future by HOLDing bitcoin.
It really isn’t for the weak, so I understand why so many people could not fathom holding onto an asset this volatile, this early into its existence. It makes sense why most people were not ready to go all in on bitcoin, but those who did were highly rewarded for their efforts.
This American HODL thread sums up HODLing bitcoin perfectly.
Here’s a story for $106,600 per Bitcoin.
6 years ago in 2018 I stacked cash all year knowing I would rebuy bitcoin at the “bottom”.
We spent 3 months or so consolidating around $6,600.
I got impatient and was like fuck it this is my moment and deployed half my stack.…
— AMERICAN HODL 🇺🇸 (@americanhodl8) December 17, 2024
I remember what it was like back in 2018 when the price of bitcoin dropped by 50%. Only at the time, I was a young college student working in physical therapy. I was in a position to take on as much risk as possible because taking care of myself was my only responsibility, so that giant drop did not affect me mentally too much. But for American HODL, as well as many other Bitcoiners who had wives and children to take care of, the stakes here were raised significantly.
Many Bitcoiners want the price to drop lower, so they can accumulate cheaper BTC. But for many Bitcoiners who have already accumulated bitcoin at cheaper prices, it can be soul crushing to watch the price of bitcoin drop by 70-80% in the bear markets. Bitcoiners, after all, are in this for wealth preservation and to increase their purchasing power. So when bitcoin dramatically drops in price, many feel like it’s a punch in the gut. Losing money sucks.
However, if you can withstand the brutal bear markets, the bull markets reward those who sheltered the storm, those who put in the effort to understand this asset and why it has these intense drops and rises. Historically, the price of bitcoin rises for three years in a row, then dumps for one year.
HODLing bitcoin is not easy. It is normal and human to feel the depression of the bear market and the euphoria of the bull. So when bitcoin inevitably dumps in the future after the bull market, be prepared to HODL.
Don’t put yourself in a position where you cannot withstand a 70-80% correction.
Understand the asset you got into and realize this is normal and everything is OK. If you can do that, you will make it out of the bear market alive, and be in prime position to take advantage of the next bull market.
This article is a Take. Opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
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Bitcoin
Bitcoin Sell-Off Likely When This Metric Reaches 4%, Analyst Explains
Published
1 week agoon
December 14, 2024By
adminWhile Bitcoin (BTC) fluctuates around the critical $100,000 price level, some investors may seek the ideal opportunity to take profits and exit the market. In this context, a CryptoQuant analysis highlights a key BTC metric that can serve as a valuable tool for crafting an exit strategy.
Have Profits In Bitcoin? Keep An Eye On This Indicator
In a Quicktake blog post published today, CryptoQuant contributor Onchain Edge shared insights into timing the sale of BTC during the current bull market. The analyst emphasized the importance of the Bitcoin supply in loss metric, noting its potential to signal when to start exiting the market to preserve profits.
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For those unfamiliar with Bitcoin, the supply in loss measures the percentage of BTC held at a loss based on its last moved price. A low percentage of supply in loss typically indicates peak market euphoria and serves as a warning to secure profits before a bear market correction begins.
According to the CryptoQuant analysis, when BTC supply in loss drops below 4%, it signals a good time for investors to consider dollar-cost averaging (DCA) out of their BTC holdings and wait for the next bear market lows. Currently, the BTC supply in loss sits at 8.14%.
DCA is an investment strategy where investors allocate a fixed amount of money to an asset at regular intervals, regardless of its price. This method helps reduce the impact of market volatility and lowers the average cost per unit over time. The analyst adds:
Why? Below 4% means a lot of people are in a profit this is the peak bullrun phase. Trust me you don’t want to be bagholding because you thought we will never see a bear market again. Be fearful when others are greedy.
Analysts Confident Of Further Upside In BTC Price
While tracking the BTC supply in loss metric can help investors safeguard their profits, recent forecasts from crypto analysts suggest there might still be room for further upside before this indicator becomes crucial.
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According to crypto analyst Ali Martinez, BTC forms a classic cup and handle pattern on the weekly chart. The premier cryptocurrency looks poised to break out of the bullish formation, with targets as high as $275,000.
Similarly, Donald Trump’s victory has brought fresh optimism in the crypto industry. In the recently concluded Bitcoin MENA conference in Abu Dhabi, Trump’s former campaign chairman, Paul Manafort, noted that BTC investors can “expect more than $100,000” during the ongoing market cycle.
Other forecasts remain equally bullish. Tom Dunleavy, Chief Investment Officer at MV Global, projects BTC to reach $250,000, while Ethereum (ETH) might climb to $12,000 during this market cycle. BTC trades at $100,983 at press time, up a modest 0.1% in the past 24 hours.
Featured image from Unsplash, Charts from CryptoQuant and TradingView.com
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