Bitcoin's value surged close to $70,000 at the start of the final week of July, as traders absorbed a series of political developments and anticipated key central bank meetings. Bitcoin was trading up by 2% at $69,640, while Ether rose 3% to $3,382, according to Coin Metrics.
This uptick comes after Bitcoin ended the previous week with a modest gain of 1%, while Ether experienced a 7% drop. Investors are now focusing on upcoming meetings of the Federal Reserve, the Bank of Japan, and the Bank of England, with particular attention on Fed Chair Jerome Powell, hoping for indications of an interest rate cut in September.
Former President Donald Trump made headlines over the weekend with his speech at the Bitcoin Conference in Nashville. Trump criticized Democratic lawmakers, including Sen. Elizabeth Warren and SEC Chair Gary Gensler, for their approach to the crypto industry. He promised that, if elected, he would retain the 210,000 bitcoins currently held by the U.S. government, forming a National Strategic Bitcoin Reserve. Trump's remarks about replacing Gensler "on day one" of his potential presidency were met with enthusiasm from the audience.
In conjunction with Trump's speech, Sen. Cynthia Lummis, a pro-bitcoin Republican from Wyoming, announced plans to introduce a bill that would establish a bitcoin reserve. This initiative includes a 1-million-unit bitcoin purchase program, aiming to secure approximately 5% of the total bitcoin supply.
The immediate impact of these political developments on Bitcoin's price was mixed. While the price dipped briefly during Trump's speech, it quickly recovered. Noelle Acheson, an economist and author of the "Crypto is Macro Now" newsletter, expressed skepticism about the long-term influence of these events on the market. "Both Trump's comments and Lummis' bill will be really hard to get through Congress," Acheson noted. She highlighted more significant potential policy shifts, such as Vice President Kamala Harris' outreach to crypto industry representatives, signaling a possible change in the Democratic stance towards cryptocurrency.
Over the weekend, the Financial Times reported that Harris' advisors are engaging with major crypto companies to reset relations between the Democratic Party and the sector. This move is seen as an effort to appeal to the crypto community, which has increasingly backed Trump due to perceived hostility from key Democratic figures.
Trump's team is banking on the growing crypto vote to aid his re-election campaign, capitalizing on the bipartisan support that the industry has garnered in Congress. Over a dozen House Democrats and several congressional candidates recently signed a letter to the Democratic National Committee, urging the inclusion of "pro-digital asset language" in the party's platform and the selection of an SEC chair who would support crypto innovation.
Bitcoin reached its highest level in over six weeks, peaking at $69,745 following Trump's supportive comments at the Bitcoin 2024 convention in Nashville. Trump vowed to end what he called the "persecution" of the crypto industry by the Biden administration and to make the U.S. the global leader in cryptocurrency. He emphasized the need to embrace crypto to prevent countries like China from dominating the sector.
Trump's pledge to fire SEC Chair Gary Gensler on the first day of his potential presidency was a key highlight of his speech. Gensler has been a noted skeptic of cryptocurrencies, despite approving exchange-traded funds (ETFs) that track the price of bitcoin. The SEC has launched over 40 crypto-related enforcement actions since 2023, reflecting Gensler's cautious stance on the industry.
At the Bitcoin convention, Trump also proposed establishing a crypto presidential advisory council and creating a national stockpile of bitcoin using cryptocurrency seized by the government in law enforcement actions. "Never sell your bitcoin," Trump advised. He pledged that his administration would retain all bitcoins currently held or acquired by the U.S. government.
The Financial Times also reported that Harris' advisors had approached top crypto companies like Coinbase, Circle, and Ripple Labs to rebuild the relationship between the Democratic Party and the crypto sector. This outreach is seen as a strategic move to mitigate the growing support for Trump within the crypto community and to align the party more closely with the evolving digital asset landscape.
