Bitcoin has jumped 4.3% to $67K as futures traders skew toward long positions ahead of Donald Trump’s speech at the Bitcoin 2024 conference in Nashville, Tennessee.
Bitcoin has recovered most of its losses from the week as traders wait to see what happens when former United States President Donald Trump takes the stage at the Bitcoin 2024 conference in Nashville, Tennessee.
“Nobody wants to short Bitcoin into the weekend,” 10x Research CEO Markus Thielen wrote in a July 25 analyst note.
Thielen explained that there are high expectations that Trump will announce plans for a strategic Bitcoin (BTC) reserve at the Bitcoin Conference on July 27 should he be elected US president in November.
Thielen believes future traders are holding off on taking short positions on Bitcoin because they fear its price may surge.
“Because if Trump announced a strategic reserve, Bitcoin would gap higher,” Thielen said.
Futures trader positions are heavily skewed toward long positions. Even a slight retrace back to $65,000 will put $1.11 billion worth of long positions at risk, according to CoinGlass data.
Futures traders are betting long ahead of the highly anticipated speech on July 27. Source: CoinGlass
“He is undoubtedly eyeing the powerful crypto lobby, which has raised $150 million for the Crypto Super PAC,” Thielen stated.
At the time of publication, Bitcoin is trading at $67,337, up 4.42% over the past 24 hours, according to CoinMarketCap.
Thielen noted that the US Treasury has gold reserves valued at $600 billion, while the government has confiscated Bitcoin worth $15 billion.
However, Thielen said there’s a chance Trump might reveal his intentions to adjust the balance between the two assets.
“Trump could indicate his intention to increase this ratio to about 10% of the gold reserves, if not higher,” he stated.
He predicts that even a mention of this could cause the market to “run with this news” without needing to wait until November for Trump’s election as president.
It was recently reported that asset manager Bryan Courchesne said adopting Bitcoin as a reserve asset would be difficult but not impossible.
Courchesne explained that the Department of Justice could simply transfer the confiscated Bitcoin to the Department of the Treasury, paving the way for the Treasury to accumulate and hold the scarce asset long-term.
