Bitcoin has recently experienced a resurgence in value, largely driven by optimistic speculation surrounding Donald Trump’s upcoming keynote address at the Bitcoin conference in Nashville.
Trump’s endorsement of cryptocurrency has generated significant excitement among investors, with many anticipating that he will propose new policies that could benefit Bitcoin, such as the establishment of a Bitcoin reserve. This speculation has contributed to a rise in Bitcoin’s price, as market participants expect potential positive announcements from Trump.
Markus Thielen, CEO of 10x Research, has pointed out that there is a notable lack of interest in selling Bitcoin over the weekend, suggesting that investors are confident in the cryptocurrency’s future.
Thielen also mentioned that many traders are avoiding short positions on Bitcoin due to fears of a possible price surge, further indicating strong market confidence in Bitcoin’s upward potential.
CoinGlass data supports this positive outlook, showing that future traders are predominantly focused on long positions rather than short ones. This shift in trading behavior is driven by the anticipation of potential price movements.
If Bitcoin’s price were to retrace to $65,000, a significant amount of long positions, totaling $1.11 billion, could be at risk of liquidation, highlighting the high stakes involved in current Bitcoin trading strategies.
As Bitcoin’s price climbs above $67,000 ahead of Trump’s speech, Thielen anticipates that it could rise even further if Trump announces plans related to Bitcoin reserves.
Drawing a comparison with the US Treasury’s gold reserves valued at $600 billion and the $15 billion worth of Bitcoin already seized by the government, Thielen speculates that Trump might propose a Bitcoin reserve ratio equivalent to 10% of the gold reserves. Such a move could potentially drive Bitcoin’s price even higher before the November elections.
The Bitcoin Conference in Nashville, which began on July 25, features prominent figures like Trump, Michael Saylor, and Cathie Wood. Additionally, presidential candidate Robert Kennedy Jr. has advocated for the federal government to purchase Bitcoin, suggesting that his administration would align Bitcoin reserves with gold reserves if elected.
This political endorsement of Bitcoin has been well-received, with the Kraken crypto exchange expressing enthusiasm about Bitcoin’s growing role in US politics. Analysts, including Daan Crypto Trades and Willy Woo, are observing Bitcoin’s price movements and macro signals, with predictions suggesting potential future gains despite current market fluctuations.
