Luke Gromen, one of the top macro experts in the USA, said President-Elect Donald Trump’s Bitcoin $99,020.7 He suggested that he could manage the market more effectively by postponing the decision to create the reserve. Gromen stated that this step will both reduce possible fluctuations on the market and strengthen the government’s financial strategies.
The Importance of Timing in Bitcoin Reserve Strategy
In his statement, Gromen stated that Trump’s announcement of his plan to establish a Bitcoin reserve on his first day in office would have an immediate impact on investors. According to him, this would cause investors to buy heavily for Bitcoin and push the prices up rapidly. “From an optics and narrative perspective, it would make more sense for such a decision not to be announced immediately,” Gromen said. This approach may provide a more advantageous position in terms of managing market dynamics.
Gromen stated that it would be more strategic for Trump to accumulate Bitcoin and announce the reserve later. He stated that in this scenario, prices will move upward as the markets learn about the government’s purchasing decision. “Creating a Bitcoin reserve and then announcing it can increase the financial returns of the government,” he said. This proposal is seen as a critical move to offset the effects of the Bitcoin reserve strategy on the market.
Change in Trump’s Cryptocurrency Policy
While Donald Trump had a distant attitude towards cryptocurrencies in the past, he now follows a supportive approach towards cryptocurrencies. In his statements at the Bitcoin2024 Conference, he stated that the government will consider Bitcoin reserves as an investment tool rather than sales. He also stated that cryptocurrencies could be used to alleviate the national debt burden, but did not share details.
These statements by Trump increased speculation about the possibility of the United States creating a Bitcoin reserve. The cryptocurrency market is closely monitoring both the short and long-term effects of such policies. Gromen emphasized that the timing of such strategies will directly shape the market and investor behavior.
With Bitcoin currently trading at $99,147, Trump’s Bitcoin reserve strategy could have a significant impact on the future of the market. However, time will tell how effective this strategy will be in the long run.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
