The growing interest in Bitcoin and other cryptocurrencies has led to a significant discussion about how Bitcoin could become a central element in US economic policy. With former President Donald Trump running for the 2024 presidential election, there is growing speculation about how his possible re-election could influence Bitcoin’s role in the US government.
Bitcoin and Donald Trump
During his election campaign, Donald Trump often referred to himself as the first ‘crypto president’, expressing strong support for cryptocurrencies and, in particular, for Bitcoin (BTC). In an interview with Bloomberg, Trump stated that cryptocurrencies ‘are not going away’ and stressed the importance for the US to become a global leader in cryptocurrency.
Bitcoin as reserve currency
According to CNBC analysts, a Trump-led government could start holding Bitcoin as a reserve. Currently, the US Department of Justice holds about 200,000 Bitcoins, a value of about $13 billion at the time of writing. The management of these reserves is crucial: if the Justice Department continues to sell Bitcoins intermittently, this could have a negative impact on the price of the asset. However, if these Bitcoins were transferred to the Treasury Department, they could be held as a reserve, possibly causing the price to rise.
The potential economic impact
Should the US decide to hold Bitcoin as a reserve, it could become one of the largest holders of this cryptocurrency. This would not only increase Bitcoin’s value, but could also strengthen the US’s position as a leader in the cryptocurrency industry. Furthermore, the upcoming launch of Ethereum ETFs could positively influence Bitcoin, offering healthy competition in the cryptocurrency ETF market.
