Bitcoin ($BTC) is nearing the $70,000 mark, reaching its highest level in six weeks after former US President Donald Trump reiterated his support for cryptocurrency.
As of Monday, Bitcoin was changing hands for $69,514, up by over 3% daily.
Other major cryptocurrencies also saw gains, with Ether ($ETH) up 4.28% at $3,350 and Solana ($SOL) rising 5.9% to around $193.
“The current positive statement regarding crypto from many politicians and economic stakeholders is bolstering investor sentiment”, said the head of APAC business development at Keyrock, Justin d’Anethan.
In a recent interview, Senator Cynthia Lummis also revealed plans to introduce a bill directing the US Treasury to purchase 1 million Bitcoins (worth about $68 billion) over five years.
This legislation would require the US Treasury to securely store these Bitcoins across various locations and hold them for at least 20 years unless sold to reduce national debt.
d’Anethan suggested that a Republican win in the upcoming elections could lead to a more business-friendly administration, potentially benefiting risk assets like Bitcoin.
Trump’s crypto promises
At the Nashville conference, Trump, who is the Republican presidential nominee, promised that if elected, he would create a “strategic Bitcoin reserve”.
He also pledged to replace SEC Chair Gary Gensler and prevent the US from selling its 213,000 Bitcoins (worth nearly $14.5 billion) seized from prior enforcement actions.
“It will be the policy of my administration to keep 100% of all the Bitcoin the US government currently holds or acquires in the future”, Trump announced.
He also promised to commute the sentence of Silk Road founder Ross Ulbricht and halt the development of a Central Bank Digital Currency (CBDC).
Trump then expressed support for stablecoin development and the Bitcoin mining industry, positioning himself as a “pro-innovation and pro-Bitcoin candidate”.
Bitcoin’s price fell to $66,600 during Trump’s speech but quickly recovered to about $68,500.
Trump’s ambitious promises to make the US the “crypto capital of the world” have significantly influenced social media and market reactions, driving positive speculation around Bitcoin.
Market reactions
The head of research at Presto, Peter Chung, highlighted the importance of monitoring US election developments saying that it has become “more important than ever”.
He explained that short-term speculative positions were liquidated during Trump’s speech due to a brief market drop.
These positions have since shifted to long-term investors who recognise the significance of political changes affecting Bitcoin.
“With the overhang removed, the market is now under no constraints to reflect the implications of not just Trump’s speech, but also Lummis’ Bitcoin Strategy Reserve Bill”, Chung added.
The head of growth at BitU Protocol, Nick Ruck, pointed out that traders are closely watching potential changes to interest rates and Trump’s choices for key positions like the Federal Reserve and the SEC if he is elected.
Surging Bitcoin sentiment
Data from market analytics firm Santiment showed that social media sentiment around Bitcoin has reached its most positive level in 16 months.
The firm’s weighted sentiment index indicates a strong surge in positive comments about Bitcoin, now 4.7 times above the normal standard deviation.
The Crypto Fear & Greed Index, which measures market sentiment, showed a ‘Greed’ score of 71, up 24 points since 28 June.
This reflects a predominantly bullish outlook among investors and traders, indicating confidence in Bitcoin’s long-term potential.
Bitcoin nearly hit the $70,000 mark on 29 July, reaching a seven-week high and coming within 6% of its all-time high of $73,757 from 14 March.
During Asia trading hours today, Bitcoin prices tapped $69,775.
Analyst “Titan of Crypto” suggested on X that Bitcoin at $110,000 “is programmed” as the asset is “breaking out from the handle” of a cup and handle chart pattern.
