It’s no secret that cryptocurrency prices rose after Donald Trump made his announcement about crypto reserves Sunday. They had retreated by early Monday.
He did not provide any timeline.
David Sacks has been added as the “crypto czar” “More to come at the Summit.”
Bitcoin’s price jumped by about 10% over the weekend to around $95,000. At the opening of this morning’s markets, Bitcoin was about $93,100. At 2pm ET, it was $87.300.
Some people were not thrilled with the idea of adding assets other than bitcoin. Brian Armstrong and Nic Carter are Bitwise execs. Donovan Choy of Blockworks has written a piece.
Josh Gilbert, eToro’s market analyst, said that Trump’s announcement was a good example of the speed with which a crypto-friendly regime could turn around the market.
“However, the concerns from last week remain unchanged from a macro perspective, and clearly, the market is willing to overlook that for now,” He said.
“Macro perspective” This includes all the inflation-related and monetary policy related stuff. Then there’re the tariffs on Canada and Mexico imports set to hit tomorrow — and a new investigation into lumber imports.
BTC fell briefly under $80,000 due to macro headwinds, and also the Bybit Hack. Trump’s space interests are a signal. “sell-offs of this nature could continue to be supported moving forward,” Gilbert added.
Many predicted a rise in BTC prices on Monday, as investors piled into Bitcoin ETFs following Trump’s remarks over the weekend. Those don’t trade 24/7, after all.
Although we will not know Monday’s inflow tally until a few hours later, BlackRock iShares Trust’s (IBIT) volumes as of 2pm ET were not atypical.
While we await more details on the US crypto reserves, we have seen some movement by a number US states. Last week, Sen. Cynthia Lummis stated that she expected one state to be able to hold a BTC before the federal government.
The Wyoming Republican made those comments before Trump published his post. The sheer number of ideas at state level indicates she might be right.
Though such efforts are effectively dead (at least for now) in five states — Pennsylvania, Wyoming, Montana, North Dakota and South Dakota — 19 others have live proposals, according to Bitcoin Laws data.
Utah has a proposal that passed through the House and now is moving to the Senate. Oklahoma House, and Texas Senate will vote soon on plans for similar reserves.
Lummis, before the election, had proposed a Federal Reserve. It was a proposal for BTC, with specifics such as holding periods of at least twenty years and funding from the revaluation of existing Fed gold certificate.), noted S&P Global’s Andrew O’Neill.
“Yesterday’s proposal lacks details on size, timing and whether it will be managed by the Federal Reserve or another new or existing entity,” O’Neill added.
Trump’s unreserved remarks (see what I mean?) This is not unusual. On Friday, we’ll learn more and see how Congress decides to respond.
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