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Bitcoin (BTC) briefly exceeded $71,000 early Monday, buoyed by the optimism from the Bitcoin 2024 conference in Nashville over the weekend. However, it soon reversed course, dropping 2% to approximately $67,000 by 2 p.m. ET.
Initial Buzz About Bitcoin Reserve Boosts Price
At the Bitcoin 2024 conference, former U.S. President Donald Trump stated that if he returns to the White House, his administration would retain all bitcoin currently held by the U.S. government, as well as any future acquisitions, effectively creating a "strategic national bitcoin stockpile."
The U.S. government currently possesses bitcoin and other crypto assets often seized through enforcement actions.
In addition, Republican U.S. Senator Cynthia Lummis of Wyoming introduced a bill to further enhance this strategic reserve by acquiring up to 5% of the total bitcoin supply over a specified number of years.
Independent presidential candidate Robert F. Kennedy Jr. also presented a similar proposal at Bitcoin 2024. He pledged that, if elected, he would use executive orders to transfer the more than 200,000 bitcoins held by the U.S. government to the Treasury as a "strategic asset" and instruct the Treasury to buy 550 bitcoins daily until the reserve reaches 4 million bitcoins.
Trump also mentioned his intention to replace U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler, who has faced significant criticism for the SEC's regulatory actions against the crypto industry.
The Growing Impact of Crypto on U.S. Elections
Crypto is increasingly becoming a focal point in the U.S. presidential election.
According to Politico, twenty-eight Democratic lawmakers and candidates have sent a letter to the party’s national committee chair, urging a change in the party's stance on bitcoin and cryptocurrency.
"From an electoral perspective, crypto and blockchain technologies play a significant role in securing victories across the ballot," the letter stated.
Additionally, the Kamala Harris campaign has engaged with various crypto companies to improve relations with the industry, as reported by the Financial Times.
The Harris campaign faced criticism from the crypto community for not accepting an invitation to speak at the Bitcoin 2024 conference over the weekend, unlike other candidates.
Ether ETF Excitement Diminishes as Outflows Increase
Spot ether (ETH) exchange-traded funds (ETFs) wrapped up their first week of trading with $341.8 million in net outflows, according to Farside Investors.
The Grayscale Ethereum Trust (ETHE) has experienced over $1.5 billion in outflows since its launch last week, as investors shift to more affordable ETFs or sell their holdings. Meanwhile, BlackRock's iShares Ethereum Trust (ETHA) has emerged as the leading spot ether ETF, attracting $442 million in inflows.
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