- We’ve heard positive signals on Bitcoin 2024
- Donald Trump is to establish a government
- Bitcoin Senator Lummis proposed a Bitcoin reserve bill
- However, Bitcoin has dropped by 2.2% to $66,482
We received positive signals from the Bitcoin 2024 conference regarding Bitcoin adoption.
Donald Trump promised to create a government Bitcoin reserve if re-elected, which you can read more about here. Also, Senator Lummis’ reserve bill here you can learn more about.
But Bitcoin dropped in price instead of skyrocketing.
What Exactly Is Happening?
Bitcoin dropped from a six-week high of nearly $70,000 by 2.2% to $66,482.
This decline occurred amid speculation that the U.S. government might sell cryptocurrency assets, which analysts believe were seized following the shutdown of the Silk Road marketplace, a platform used for illegal activities.
This move followed the transfer of $2 billion worth of Bitcoin to a new digital wallet, according to Arkham Intelligence.
Spencer Hallarn, global head of OTC trading at GSR, observed a surge in short-term buying ahead of Trump’s speech, followed by profit-taking by option buyers, which put downward pressure on prices.
After Trump stated his intention to make the U.S. the “crypto capital” and vowed not to sell seized cryptocurrencies, aiming to use them for a strategic Bitcoin reserve – speculation arose that the recent Bitcoin transfer might be a government action, which some, like Galaxy Digital’s Michael Novogratz, criticized as poorly timed.
Conclusions
Despite the price decline due to speculation, Bitcoin remains a hot topic among global political powers, serving as an incentive for its growth.
The coming period will show how the initiatives of major world leaders and the careful execution of these initiatives will impact the value of the central crypto asset.
