Amid the recent market turmoil that drove Bitcoin to a seven-month low of $49,000, former President Donald Trump engaged with Twitch Streamer Adin Ross in a bid to garner support for a potential re-election campaign in November.
In his speech, Trump emphasized the importance of the United States holding on to its Bitcoin and other crypto reserves, warning that failure to do so could allow China to seize the opportunity, as he has previously cautioned.
The former president highlighted Bitcoin as a modern currency with notable potential, citing individuals within his circle who endorse its value and urging the government to consider its benefits.
Drawing a parallel with artificial intelligence (AI), Trump underscored the necessity for the US not to lag behind in the crypto sphere, as other nations like China are swiftly advancing in this domain.
Trump’s recent statements build upon his earlier declarations in Nashville at the end of July, where he vowed to remove Gary Gensler, the Chair of the US Securities and Exchange Commission (SEC), as his initial move towards embracing crypto adoption if re-elected as President.
Additionally, Trump reiterated his proposal to establish a national Bitcoin stockpile, positioning the leading crypto as a strategic reserve asset for the US dollar. He affirmed the government’s commitment to retaining ownership of all Bitcoin holdings rather than opting for a market sell-off, aligning with his stance expressed alongside Adin Ross.
Bitcoinist reported on Sunday that Senator Cynthia Lummis, a strong supporter of cryptocurrencies, introduced a bill on July 31 aimed at establishing a “Strategic Bitcoin Reserve” program within the government.
Following the announcement of the development of such a plan and her remarks at the 2024 Bitcoin Conference, Senators received a significant influx of constituent letters urging their support for Lummis’ bill, which has now been referred to the Senate Committee on Banking, Housing, and Urban Affairs, which will consider the legislation.
Although it is difficult to assess the next significant move for the largest cryptocurrency on the market, BTC has managed to climb back above the $53,900 mark, with one analyst still suggesting bullish predictions for the Bitcoin price.
In the midst of this bullish thesis that is emerging after the sharp decline of the past 24 hours, technical analyst Mitchell has highlighted a compelling indicator that has historically signaled the beginning of powerful bull markets.
The indicator in question revolves around the cost dynamics of mining Bitcoin versus purchasing it directly from the spot market. Mitchell asserts that whenever the expense of mining one BTC using an average-efficiency ASIC surpasses the cost of acquiring one BTC on the spot market, a parabolic bull market tends to emerge.
Historical cases in November 2022, September 2022, March 2020, December 2018, January 2016 and January 2015 underline the importance of this pattern. Nevertheless, it remains to be seen whether BTC can sustain the current recovery and regain previously lost support levels to prevent further price declines.
Featured image from DALL-E, chart from TradingView.com
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