Bitcoin experienced a significant price surge, rising 7% following the start of the Bitcoin 2024 conference in Nashville. The event, which began on Thursday, culminated with a pro-crypto keynote speech by former President Donald Trump. In his address, Trump outlined his plans to make the U.S. the “crypto capital of the planet and the Bitcoin superpower of the world.” As of Monday morning ET, Bitcoin is hovering just under $70,000, its highest price since June 6, according to CoinGecko data.
Trump’s Pro-Crypto Speech
In a 30-minute address to approximately 20,000 crypto enthusiasts at the industry’s largest U.S. conference, Trump vowed to end the hostile regulatory environment under President Joe Biden and SEC Chairman Gary Gensler. He promised that future crypto policies would be “written by people who love your industry.” Trump likened the current state of crypto to the steel industry a century ago, emphasizing its potential for growth and innovation.
Trump’s growing embrace of crypto and his improved electoral outlook, which prediction markets currently forecast at a 60% chance of victory, have been sending crypto prices soaring. Over the past week, Ethereum and Solana tokens have also climbed, with Ethereum up 8% and Solana 7%, according to CoinGecko data. Despite his historical skepticism of Bitcoin, Trump’s rebranding as a pro-crypto candidate was evident in Nashville, with attendees donning red “Make Bitcoin Great Again” hats and orange “Make Money Great Again” hats.
Bitcoin Strategic Reserve Proposal
During his speech, Trump pledged to create a Bitcoin “strategic reserve” if reelected. This proposal involves the U.S. government holding onto all tokens it currently owns, in addition to purchasing 1 million Bitcoin over five years, worth about $70 billion at current market prices.
Jack Mallers, CEO of Strike, a Bitcoin payments platform, expressed his support on social media, stating, “The US establishing a #Bitcoin Reserve would rank among the most important events in US economic history. In fact, this is more than an economic event; it is a declaration of a new era of prosperity and freedom.”
Democratic Reset and Market Optimism
Trump’s bullish rhetoric is not the sole reason for Bitcoin’s price surge. Optimism has been growing since President Biden announced his withdrawal from the presidential race on July 21. Vice President Kamala Harris, the presumed Democratic nominee, is seen as potentially more crypto-friendly than her predecessor.
Although Harris has yet to make any public comments about crypto, some industry insiders are optimistic due to her Silicon Valley roots—having been raised in California and serving as the district attorney of San Francisco. On Saturday, the Financial Times reported that Harris’s team had reached out to major crypto firms, including Coinbase (NASDAQ), Circle, and Ripple Labs, in an attempt to “reset” relations.
Market Reactions and Future Outlook
The positive market reaction to Trump’s remarks and the potential for a more favorable regulatory environment under Harris has contributed to the recent Bitcoin price surge. Institutional support and increased interest from major financial players have also bolstered the cryptocurrency market.
As Bitcoin and other cryptocurrencies continue to gain mainstream acceptance, events like the Bitcoin 2024 conference and political developments will play crucial roles in shaping the market’s future. Investors are closely watching how the political landscape evolves and its impact on crypto regulations and market dynamics.
Conclusion
The recent 7% surge in Bitcoin’s price underscores the significant influence of political developments and public statements by key figures like Donald Trump. His pro-crypto speech at the Bitcoin 2024 conference and the potential for a Democratic reset under Kamala Harris have fueled optimism in the market. As the U.S. navigates its regulatory approach to cryptocurrencies, the actions and promises of political leaders will remain pivotal in shaping the industry’s future.
Investors and industry stakeholders will continue to monitor these developments closely, balancing optimism with caution as the market responds to evolving political and economic landscapes.
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