Donald Trump Unveils Plans for the US Government's 213,239 Bitcoin If Elected

Key Highlights from Trump’s Bitcoin 2024 Conference Appearance

On July 27, 2024, former President Donald Trump made a notable appearance at the Bitcoin 2024 conference in Nashville, where he outlined his plans for the US government's Bitcoin holdings if he wins the presidential election.

Trump’s Bitcoin Policy

During his speech, Trump declared that if elected, his administration would mandate the US government to retain “100%” of its Bitcoin holdings. He criticised the current administration for not adhering to what he described as a fundamental principle of Bitcoin enthusiasts: never selling their BTC.

Currently, the US government holds approximately 213,239 BTC, valued at about $14.87 billion, according to on-chain analytics platform Arkham Intelligence. Historically, the government has sold portions of its Bitcoin, with the most recent sale being 1,754 BTC in April. Trump's proposal to hold all government Bitcoin could potentially have a significant impact on Bitcoin’s market dynamics, reducing the available supply and potentially driving up the price.

Background of US Government’s Bitcoin Holdings

The bulk of the US government's Bitcoin holdings were obtained through seizures from the Silk Road dark web marketplace, founded by Ross Ulbricht. Trump reiterated his promise to commute Ulbricht’s sentence if he is elected. However, it is unlikely that Ulbricht will regain the 50,591 BTC previously stolen by hackers, as he forfeited claims to these funds in 2022.

Impact on the Crypto Market

Trump’s candidacy and promises have sparked bullish predictions for Bitcoin. Prior to the conference, Trump had already voiced strong support for Bitcoin and other cryptocurrencies. Analysts, such as those from Standard Chartered, have speculated that Bitcoin could reach $150,000 by the end of the year if Trump wins the election.

Trump's potential victory is also anticipated to bring more favourable and clearer crypto regulations, which could positively influence crypto prices. This is in contrast to the current regulatory climate, which has been criticised for its enforcement-based approach under SEC Chair Gary Gensler. Trump has promised to remove Gensler, further bolstering optimism in the crypto community.

In summary, Trump's plan to retain all US government-held Bitcoin and his supportive stance on cryptocurrency have contributed to a bullish outlook for the crypto market, with potential significant implications for Bitcoin's price and regulatory environment.