The chief govt of market intelligence platform CryptoQuant is warning traders that the US authorities’s motivations for making a Bitcoin (BTC) commonplace could also be completely different from what they count on.
In a brand new thread on the social media platform X, Ki Younger Ju says that for the US to noticeably think about a BTC commonplace, it must see its world financial dominance threatened by one other nation.
“I personally assist the concept of Bitcoin Commonplace. Nevertheless, I query whether or not the U.S., whereas persevering with to develop as different economies stagnate, would undertake Bitcoin as a strategic asset. For the controversy to achieve critical momentum, the U.S. would want to see its world financial dominance genuinely threatened. At current, market sentiment suggests confidence within the U.S.’s continued supremacy.”
The Bitcoin Commonplace – which can also be a guide written by Saifedean Ammous – refers to the concept that the US authorities might use Bitcoin as a reserve asset.
Based on Ju, whereas it’s within the realm of risk that the federal government creates a BTC commonplace, even when it did, the federal government’s intentions would vastly differ from that of Bitcoin bulls and traders, although no specifics had been talked about.
“Whereas it’s conceivable that the U.S. authorities might buy Bitcoin for danger administration or financial leverage, its motivations would possible differ tremendously from what Bitcoiners think about.
The notion of shopping for Bitcoin to arrange for a Bitcoin Commonplace or as a instrument to defend the greenback system appears far faraway from the present actuality. With world capital flowing into the U.S., many nonetheless imagine the greenback’s dominance is safe.”
Ju concludes by noting that if President-elect Donald Trump’s time period is profitable and he rebuilds the power of the US greenback, he might change his pro-BTC stance.
“If Trump succeeds in showcasing U.S. financial resilience, reinforcing the greenback’s supremacy, and boosting his approval rankings, it’s unclear if he would keep the sturdy pro-Bitcoin stance he demonstrated throughout his marketing campaign. He might simply step again from his Bitcoin advocacy, citing altering priorities, with out alienating his voter base.”
Earlier this month, Fed Chair Jerome Powell said that the federal government just isn’t legally allowed to carry Bitcoin as a reserve asset and has no plans to alter the legislation, inflicting the crypto king to see a major dip in value.
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