news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

"King of Understanding" has "understood" Bitcoin again. On July 28, last Saturday, Eastern Time, at the Bitcoin 2024 Conference held in Nashville, Tennessee, the United States, former US President Trump attended and delivered a keynote speech to actively win voters in the cryptocurrency industry and raise campaign funds. Advocating that all Bitcoins in the future be made in the United States, the government retains 100% of its Bitcoins, and creates a stablecoin framework... From public questioning to the intention to "make Bitcoin great again", Trump's change in attitude towards the cryptocurrency market has also led to a rise in Bitcoin prices, and market confidence and compliance seem to be just around the corner. However, in the view of analysts, policy changes are also accompanied by many risks, and the digital asset market is expected to continue to maintain a high volatility in the future.

"This afternoon, I will outline my plan to ensure that the United States will become the cryptocurrency capital of the world and the Bitcoin superpower of the world, and we will achieve this goal," Trump said first.

In his speech, Trump highlighted the Republican Party's growing acceptance of cryptocurrencies, in contrast to the Biden administration's tough regulatory stance. "Never sell your Bitcoin," Trump said, adding that Bitcoin's market value has been increasing since its birth, and it has become the ninth-largest asset in the world by market value, and will soon surpass silver and gold in the future.

As for the position of Bitcoin, Trump pointed out that if he can return to the White House, he will ensure that the government retains 100% of its Bitcoin and will list Bitcoin as a strategic reserve asset of the United States. He also promised to form a presidential advisory committee for the encryption industry, create a stable currency framework, and call for a reduction in law enforcement efforts.

Bitcoin's trend also took a "roller coaster" ride following Trump's statement. During his speech, Bitcoin took a V-shaped trend, first falling below the $67,000 mark; and at the end of the speech, when Trump announced the Bitcoin strategic reserve plan, it rose violently again, recovering all the losses. As of 10:00 on July 28, Bitcoin had exceeded $68,000, reaching a high of $69,370.

However, after reaching its peak, Bitcoin fluctuated downward. As of 17:00, the price of Bitcoin was US$67,469, down 0.8% in 24 hours.

In the view of Yu Jianing, co-chairman of the Blockchain Committee of the China Communications Industry Association and honorary chairman of the Hong Kong Blockchain Association, Trump's proposal to list Bitcoin as a strategic reserve asset of the United States, if implemented, will have great symbolic significance and practical impact. On the one hand, this will mark the transformation of Bitcoin from a niche asset to a state-recognized reserve asset, greatly enhancing its legitimacy and recognition. Such a policy shift has given Bitcoin a new status and significantly enhanced the market's confidence in its long-term value.

On the other hand, as a strategic reserve asset, Bitcoin will provide economic stability and financial security for the country together with traditional reserve assets such as gold and foreign exchange reserves. This recognition can further consolidate Bitcoin's position in the global financial system and prompt more global central banks and governments to reassess their positions on Bitcoin and digital assets.

At the same time, Yu Jianing said that with the compliance of policies, institutional investors' interest in Bitcoin and Bitcoin ETFs will further increase. Currently, many large institutions and asset management companies are still taking a wait-and-see attitude towards digital assets due to risk management reasons. Once Bitcoin is listed as a strategic reserve asset and is recognized and supported at the national level, these institutions will be more motivated to purchase Bitcoin or related ETF products on a large scale, thereby injecting a large amount of funds into the market and improving the stability and maturity of the digital asset market.

From publicly disparaging Bitcoin as "air without value foundation" while in office to "strongly supporting" it today, Trump's change in attitude has not only enabled him to raise a large amount of donations, but also brought optimism to the cryptocurrency market, becoming one of the reasons for Bitcoin's price fluctuations in recent times.

In the past month, Bitcoin fell from around $63,000 in early July to a low of $54,000, and then fluctuated upward, climbing above $68,000 on July 22. On July 25, the price of Bitcoin reached around $64,000, and reached its peak on July 28, Beijing time.

However, in the view of most market participants, Trump's publicity of his importance to Bitcoin is just a means to win votes, and the high risks of Bitcoin cannot be ignored.

With Trump's support, will Bitcoin really surpass gold in market value in the future? Yu Jianing said that Trump's public support has boosted market confidence in Bitcoin, which will undoubtedly attract more institutional investors and large financial institutions to enter the Bitcoin market, thus bringing in huge capital inflows in the long term and driving up Bitcoin prices.

However, the policy changes mentioned by Trump are also accompanied by many risks, and uncertainty remains the main theme of the Bitcoin market. Yu Jianing pointed out that the most important thing is the complexity and uncertainty of policy implementation. Although Trump expressed clear support, turning these promises into specific policies and laws still requires complex legislative procedures and coordination of interests among multiple parties.

If Trump is elected, the implementation of these policies will also face challenges. On the one hand, the complexity of the legislative process cannot be underestimated. The implementation of policies also requires cross-departmental coordination, involving multiple regulatory agencies such as the Treasury Department, the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC). On the other hand, political and economic resistance cannot be ignored. Although Trump now has a certain support in the digital asset community, his policy proposals may also be opposed by traditional financial institutions, conservative lawmakers, and interest groups that are skeptical of digital assets. In addition, international trade disputes, geopolitical tensions, etc. may affect the priority and enforcement of the US government's digital asset policies.

It is worth noting that there are still strict restrictions on the use and trading of encrypted digital assets in my country. Yu Jianing emphasized that Bitcoin still faces risks such as uncertainty in the regulatory environment of various countries, high volatility, and technical and security issues. Although Bitcoin technology is relatively mature, infrastructure such as digital asset trading platforms and wallets still face security threats. It is expected that the digital asset market will continue to maintain a high volatility in the future. Market fluctuations and long-short games are also important processes in the formation of a new consensus.

Beijing Business Daily reporter Yue Pinyu Dong Hanxuan