The post How Trump’s Strategic Reserve Proposal is Shaking the Crypto Market appeared on BitcoinEthereumNews.com.
Bitcoin’s rise to $106,533 reflects a strong market momentum as President-elect Donald Trump hinted at a groundbreaking plan to establish a U.S. Bitcoin strategic reserve during his interview with CNBC. With a recent price of $105,688, the cryptocurrency has increased by more than 50% since the election on November 5. Plus, ether increased by about 3% to $4,014. On Chain data revealed that nearly 27,000 Bitcoins, worth $2.8 billion, were withdrawn from major exchanges over the weekend, potentially driving prices higher due to reduced supply. This is an electrifying effect of Trump’s ultimate vision is to ensure America’s dominance in crypto before anyone else takes over, particularly against competitors like China, has fueled confidence among investors. Moreover, his selection of crypto-friendly figures, including David Sacks as the White House AI and crypto czar and Paul Atkins to head the SEC, signals a policy shift towards mainstream adoption. This move is a green flag for global powers, including Russia, to explore Bitcoin’s potential to counter geopolitical challenges, signaling a possible “Bitcoin cold war.” President Vladimir Putin explores alternatives to the U.S. dollar. Putin recently emphasized Bitcoin’s resilience against restrictions, highlighting its appeal as a hedge against traditional currencies. The Bitcoin reserve plan gained traction as companies like MicroStrategy and Tesla adopted Bitcoin as a hedge against economic risks. MicroStrategy now holds 423,650 BTC, worth $43.6 billion, showcasing Bitcoin’s potential as a modern reserve asset. Trump’s proposal for a Bitcoin reserve echoes his earlier promise at the Bitcoin 2024 Conference, where he predicted Bitcoin’s market cap could rival gold’s $16 trillion. Supporting this vision, Republican Senator Cynthia Lummis introduced the BITCOIN Act, advocating for the U.S. to acquire 1 million Bitcoins over five years to address the $35 trillion national debt. Critics Have Mixed Views on Trump’s Bitcoin Plan Trump needs Congress…