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Trump’s unconventional plan to erase $35t debt

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Former President Donald Trump suggested using Bitcoin to eliminate the United States’ $35 trillion national debt. 

The U.S. national debt continues to rise, and the Republican presidential nominee has a bold idea to address the issue: Giving Bitcoin (BTC) to China to pay off U.S. debt.

“Crypto is a very interesting thing. It’s very high-level in certain ways, intellectually very high-level. But if we don’t do it, China’s gonna do it… maybe we’ll pay off our $35 trillion debt, hand them a little crypto check, right?” Trump said to Fox News’s Maria Bartiromo. “We’ll hand them a little Bitcoin and wipe out our 35 trillion.” 

This bold proposal will spark widespread discussion in the crypto space, but the feasibility of using crypto to mitigate the country’s financial debt does not come without its set of challenges.

The United States government currently holds 210,392 Bitcoin, which is currently worth $13.3 billion, making the country one of the largest holders of the coin. 

At the time of writing, Bitcoin is trading near $63,000. 

Trump math: How the United States can pay off its debt with Bitcoin

Believe it or not, in a perfect world where price predictions are met, Trump may be onto something. Here are some recent Bitcoin price targets by major financial institutions: 

Fundstrat Global Advisors estimates Bitcoin could reach $180,000 by the end of 2024, driven by spot Bitcoin ETF adoption. Standard Chartered has recently revised its 2024 year-end target from $100,000 to $120,000, citing increased institutional adoption and favorable market conditions.

Bernstein, an asset management firm with over $750 billion in assets, doubled down on its bold Bitcoin price prediction and raised its target for 2025 from $150,000 to $200,000. ARK Invest projects a long-term price target of $600,000 by 2030, emphasizing Bitcoin as a hedge against inflation and a store of value​. Fidelity has famously predicted that Bitcoin could hit $1 billion by 2038. 

At the current price of Bitcoin, the United States would need roughly 555,555,600 Bitcoin to pay off its debt. 

​​At $180,000 per Bitcoin, the United States would need 194,444,000 Bitcoin. 

At $280,000 per Bitcoin, the United States would need 125,000,000 Bitcoin.

At $600,000 per Bitcoin, the United States would need 58,333,000 Bitcoin.

At $1,000,000 per Bitcoin, the United States would need only 35,000,000 Bitcoin. 

And if Fidelity’s price prediction is correct, and Bitcoin reaches $1 billion by 2038, the United States would only need only 35,000 Bitcoin.

While using Bitcoin to erase national debt is intriguing, the practicality of such an approach is dubious — and it relies on several economic and logistical challenges. 

Bitcoin’s volatility, evolving regulatory environment, and significant trading volume must be considered. At the time of writing, Genesis Trading is beginning to sell its Bitcoin to repay debts, causing a large sell-off. Of coarse, Bitcion’s supply is limited to 21 million coins so many of the scenarios above represent unrealistic scenarios.

Currently, Trump’s assertion that a ‘small’ amount of Bitcoin could wipe out all of the US debt is premature, but if the U.S. continues to purchase and amass Bitcoin while its value keeps rising, maybe the country could be debt-free, or at the very least chip away at the massive multi-trillion dollar obligation.



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Bitcoin Breakout At $93,257 Barrier Fuels Bullish Optimism

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Bitcoin has shattered expectations once again, surging past the critical $93,257 level in a display of unstoppable momentum. This breakout has ignited fresh waves of bullish optimism across the crypto market, as traders and investors anticipate greater gains. With market sentiment shifting and key indicators aligning, could this be the spark for Bitcoin’s next major rally?

As optimism steadily increases in the market, the goal is to take a closer look at BTC’s impressive breakout above the $93,257 mark, analyze the positive sentiment driving its climb, and assess the potential for continued upward strength in the market.

Bullish Indicators: What’s Fueling BTC’s Uptrend?

Currently, on the 4-hour chart, BTC is sustaining its position after successfully surpassing the $93,257 mark while trading above the 100-day Simple Moving Average (SMA). By maintaining its position above this level and the 100-day SMA, BTC demonstrates resilience and capability for more price growth, targeting new highs.

Bitcoin

An analysis of the 4-hour Relative Strength Index (RSI) shows a significant surge, climbing to 70% from its previous low of 56%, indicating strong bullish pressure for BTC. While this increase signals growing positive market sentiment, it raises concerns about the rally’s sustainability since a price correction could occur if profit-taking ensues.

Bitcoin is showing strong positive movement after breaking past the $93,257 level, supported by a rise above the 100-day SMA, reflecting sustained bullish strength and potential for continued upward movement. The fact that BTC is consistently above the 100-day SMA suggests a solid trend and that the bulls are eager to push prices higher, possibly leading to an extended growth if pressure continues to build.

Bitcoin

Finally, the RSI on the daily chart is currently at 81%, well above the key 50% threshold, signaling a strong uptrend for Bitcoin. With the RSI at this level, it suggests that the upside pressure is likely to continue, which means that Bitcoin’s price could keep rising in the near term, as there are no signs of a reversal or decline.

What The $93,257 Breakout Signals For Bitcoin

The $93,257 breakout opens the door to a more optimistic future outlook for Bitcoin. This key resistance level has been decisively breached, suggesting that BTC may continue its upbeat momentum, potentially targeting higher price levels such as the $100,000 mark and beyond.

However, careful monitoring is essential for any signs of resistance or market corrections that could hinder its ascent. Should such a scenario occur, Bitcoin’s price could begin to drop toward the $93,257 mark. A break below this level might trigger further declines, possibly testing additional support levels in the process.

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Bitcoin Approaches $100K; Retail Investors Stay Steady

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Bitcoin trades at $99,340.23, approaching the $100K mark as retail investors retain market dominance.

What is more interesting about this rally is the dominance of retail investors, who currently account for 88.07% of all Bitcoin (BTC) in circulation, according to The Block. Contrary to the recent claims that institutional investors are leaving retail investors behind in ownership of BTCs, the asset is still in the hands of retail investors, which underlines their stronghold in the market. This grassroots stronghold contrasts the much smaller shares held by whales at 1.26% and institutional investors at 10.68%.

Bitcoin edges at $100K while retail investors still hold the reins - 1
A heat map showing whales, investors and retail investors of Bitcoin. | Source: crypto.news

Adding momentum to BTC, the historic debut of BlackRock’s BTC ETF options witnessed $1.9 billion in notional value traded on the first day. It is a landmark news because it signifies growing institutional interest in BTC, yet lowers entry barriers for everyday investors. But there’s still some way to go, says Jeff Park, Head of Alpha Strategies at Bitwise Invest, in his observations on X about the ETF’s potential to reshape access to BTC. 

Jeff Park comment on BTC ETF

Bitcoin Breakdown:

How BTC ownership is distributed supports the overall trend of asset availability in the market. Companies such as Coinbase have substantial quantities of BTC, holding more than 2.25 million BTC. However, most of this is kept for their clients. Satoshi Nakamoto‘s wallet, which contains 96,8452 BTC, remains untouched as it played a role in creating the Genesis block.  

Overall, funds and ETFs account for 1.09 million BTC, or about 5.2%, while governments such as the U.S. and China collectively hold around 2.5%. 

Despite BTC witnessing price surges, the market is far from stable and often shows extreme volatility. For instance, on Nov. 21, the price of BTC dipped to $95,756.24, with trading volume reaching $98.40 billion. This volatility then reflects the vital role that retail investors play during price hikes, even as institutional investors become more active in the market. 

Some argue that BTC is becoming more centralized, but the data does not back this claim. Financial products like ETFs are attractive to institutions, but they also make BTC more accessible to retail investors. BTC continues to align with Satoshi Nakamoto’s vision of a decentralized and democratized financial system. As BTC nears the $100,000 threshold, its open-and-shut conversation that BTC’s ownership remains essential.





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Bitcoin Nears $100,000 As Trump Council Expected To Implement BTC Reserve

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Follow Nikolaus On X Here

What an enormous day it has been today.

Gary Gensler officially announced that he is stepping down from his position as Chairman of the Securities and Exchange Commission (SEC), and minutes later, Reuters reported that Donald Trump’s “crypto council” is expected to “establish Trump’s promised bitcoin reserve.” A bitcoin reserve, that would see the United States purchase 200,000 bitcoin per year, for five years until it has bought 1,000,000 bitcoin. 

Image via Julian Fahrer

Right after both of those, Bitcoin continued its upward momentum and broke $99,000, with $100,000 feeling like it can happen at any second now.

It is hard to contain my bullishness thinking about the United States purchasing 200,000 BTC per year. They essentially have to compete with everyone else in the world who is also accumulating bitcoin and attempting to front run them. There are only 21 million bitcoin and that is a LOT of demand.

To put this into context, so far this year the US spot bitcoin ETFs have accumulated a combined total of over 1 million BTC. At the time of launch the price was ~$44,000 and now bitcoin is practically at $100,000. And that’s all ETFs combined. Imagine what will happen when just one entity wants to buy a total of 1 million coins, having to compete with everyone else accumulating large amounts as well?

I mean MicroStrategy literally just completed another $3 BILLION raise to buy more bitcoin, and will continue raising until it purchases $42 billion more in bitcoin. The United States are most likely going to be purchasing their coins (if this legislation is officially signed into law) at very high prices. The demand is insane and only rising in the foreseeable future.

With two months left to go until Trump officially takes office, it remains to be seen if this bill becomes law, but at the moment things are looking really good. As Senator Cynthia Lummis stated, “This is our Louisiana Purchase moment!” and would be an absolutely historic moment for Bitcoin, Bitcoiners, and the future financial dominance of the United States of America.

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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