According to Institutional Crypto Research 10x Research: This week is packed with potential market-moving events that could significantly impact Bitcoin. With rumors suggesting that the SEC may settle a major case and former President Donald Trump set to deliver a highly anticipated speech in Nashville, speculation is rife that Bitcoin could be declared a strategic reserve asset, potentially triggering a parabolic rise in its price.
Market Dynamics and Political Developments
Biden's Exit and Trump's Prospects: The political landscape shifted dramatically with Joe Biden dropping out of the US Presidential race. With no credible candidate challenging Donald Trump, it appears likely that a pro-crypto administration will enter the White House. Historically, such transitions have led to the resignation of the SEC chair, and current SEC Chair Gary Gensler is expected to resign by early 2025.
Potential Trump Announcements: Reports and rumours suggest that Trump might announce Bitcoin as a strategic reserve asset during his speech at the Bitcoin 2024 conference in Nashville on July 27. Such an announcement would have significant implications for the crypto industry, especially if the US Treasury and financial leaders like BlackRock’s Larry Fink and JP Morgan’s Jamie Dimon support the initiative.
Market Implications and Strategic Moves
Strategic Reserve Asset Impact: If Bitcoin were integrated into the US financial system as a strategic reserve, it would mark a substantial shift in financial policy. The US government currently holds approximately 212,847 Bitcoins, valued at around $15 billion, a fraction of its gold reserves valued at about $600 billion. Doubling these Bitcoin holdings would have a considerable signaling impact on the market.
Trader Strategies: Given the potential for significant political tailwinds supporting Bitcoin, traders are advised to position themselves for a breakout. Selling or shorting Bitcoin ahead of Trump’s Nashville speech could be costly, especially as Bitcoin approaches its previous bull market’s all-time high of $68,300.
Upcoming Market Events
Ethereum ETF Launch and US GDP Report: Other notable events this week include the Ethereum ETF launch on July 23 and the US GDP report on July 25, which could influence market dynamics. However, these events might be overshadowed by Trump’s speech and the potential for a settlement in the Ripple Labs (XRP) vs. SEC case.
