Bitcoin News: CryptoQuant’s CEO’s Take On Trump’s Bitcoin Policies
- Ki Young Ju, CEO of CryptoQuant, recently highlighted the prospective Bitcoin policy under Donald Trump.
- He claimed that Trump could backtrack on the pledges he made during the election.
- He stressed that the formation of a Bitcoin reserve is unlikely to take place while the US dollar remains strong.
Donald Trump won the presidential election race with most crypto enthusiasts’ votes in his fold. Clearly, the crypto community has bought his promises of leading the global crypto race.
Since his win, Bitcoin has skyrocketed, reaching remarkable heights and making news every day. In the wake of the latest Bitcoin news, CryptoQuant’s CEO, Ki Young Ju, made comments on Trump’s potential Bitcoin policies.
He talked about how Trump’s promise of a strategic Bitcoin reserve could be mere rhetoric to gain election votes. He also discussed the impact of Trump’s decision on the BTC price.
Dependence on Economic Standing
Since touching the $100K mark, there has been a lot of positive Bitcoin news surfacing in the market. Ki Young Ju also made some remarks on Bitcoin in his X post on December 28th.
Ju argued that Trump’s Bitcoin Policy would depend on the might of the US economy and its geopolitical standing. He pointed out that gold prices surge when investors perceive threats to US economic hegemony.
He stated, “Throughout history, whenever the United States perceived a threat to its dominance in the global economy, gold prices surged, and debates around the gold standard gained traction.”
Ju underlined that the current state of the BTC price is the same. Peter Schiff promoted gold as the best medium of exchange in the late 1990s.
As per him, today’s Bitcoin maximalists make similar arguments in favor of Bitcoin. These proponents believe that Bitcoin is a cutting-edge substitute for gold.
The US has refrained from going back to the gold standard. This is despite the well-known surge in gold prices during economic downturns.
Notably, after the petro-dollar dominance was achieved in the 1970s, the US never looked back. Even though inflation and a looming debt crisis eat away at the greenback’s value, its dominance as the most safe store of value remains unblemished.
The gold standard has been a thing of the past for the last half-century. Bitcoin has embraced the same perception that gold held.
Strategic Bitcoin Reserve Unlikely
Discussions of a US Strategic Bitcoin Reserve has been doing the rounds since Trump’s victory. However, according to the CEO of CryptoQuant, it is unlikely to happen.
For his part, Ju is in favor of a Bitcoin standard. However, he wonders if the United States would embrace Bitcoin as a strategic asset.
He emphasized that the US dollar’s strength determines the government’s approach toward Bitcoin and cryptocurrencies, including stablecoins. He stated, “For the debate to gain serious momentum, the U.S. would need to see its global economic dominance genuinely threatened.”
Ju observed that investor confidence in the US economy remains high. To many, the US dollar’s dominance is secure, with global capital flowing into the US.
The CEO wrote in his post, “Even before his inauguration, Trump consistently warned other world leaders of the power gap between the U.S. and other nations. This rhetoric, combined with increased capital inflows to the dollar, could renew confidence in its supremacy.”
With all these scenarios, the Trump administration is unlikely to establish a Bitcoin strategic reserve. Ju called on the possibility that the upcoming president could renege on his campaign promises.
Amid reporting this Bitcoin news, the BTC price was trading at $94.95K. It recorded a market cap of $1.87 Trillion and a 24-hour volume of $22.47 Billion.