Mt. Gox's impact may be less than many fear. Nashville Bitcoin conference also provides cause for optimism.
The Mt. Gox Scarecrow
The entity in charge of the Mt. Gox bankruptcy transferred 48,600 bitcoins (equivalent to $3 billion) to a new address belonging to the Kraken exchange last week. Kraken and the Bitstamp, BitGo, Bitbank and SBI VC Trade exchanges were responsible for the final repayment of creditors.
Kraken recently assured that the distribution process will be completed within 7 to 14 days. The distribution is therefore expected to be completed this week, easing the fears that weighed on the market in June.
According to NYDIGsales equivalent to $1.5 billion are expected. While this is a significant amount, it is small compared to bitcoin's daily trading volume of between $10 billion and $20 billion.
Moreover, the distribution of more than $2 billion worth of bitcoin at the beginning of the year by Gemini did not cause bitcoin to fall. The impact of Mt Gox distributions may be less than feared.
According to NYDIG, only 22,000 bitcoins will be sold out of the approximately 90,000 bitcoins still to be distributed. In this regard, note that Mt. Gox transferred 0.021 BTC ($1,400) to a new address belonging to the Bitstamp exchange on Monday. This test transaction suggests that some of the 90,000 BTC will also be distributed soon.
However, recent substantial net inflows into the Bitcoin ETF suggest that the FUD is no longer taking hold. July is already the third best month since the launch of ETFs. The market seems to be banking on strong announcements from Donald Trump at the end of the week.
Trump the bitcoiner
All eyes will be on Tennessee this week. Nashville will host the Bitcoin 2024 conference and Donald Trump. The excitement has been running high since the assassination attempt.
Speculation is rife about the nature of his speech, scheduled for 9 p.m. on July 27. Rumors are that he will announce the creation of a “strategic reserve of bitcoins” if elected.
It is one of two proposals put forward by his rival Robert Kennedy last year. Mr Kennedy has promised “to back the dollar with assets such as gold and bitcoin, the world's scarcest and most liquid asset. This will strengthen the dollar and ensure its continued success as the world's reserve currency.”
From an outside perspective, replacing the international reserve currency, the dollar, entirely with bitcoin would be preferable. Don't miss our article: “Russia pleads in New York for end of dollar monopoly.”
In addition, Mr. Kennedy promised to abolish the capital gains tax on the conversion of bitcoin to the dollar. Who can beat that? Donald Trump?
In any case, let us recall that the US government transferred 30,000 BTC ($2 billion) in April to CoinbaseWith bitcoin having entered the presidential election, it is likely that Democrats will cancel this sale to avoid causing a stir.
In total, the United States government holds 213,000 BTC following several seizures carried out by the American Justice. This is already a substantial strategic reserve. It is approximately four times larger than the one the German government held just a week ago…
A pro-bitcoin administration?
If Trump wins in November, the JP Morgan boss could become his Treasury secretary. The problem is, Dimon is not a fan of bitcoin. Here are some of the barbs he's thrown at him over the past five years:
– “It's worse than tulip bulbs. It's going to end badly.”
–“It will eventually be banned.”
–“It's a terrible store of value. It can be reproduced infinitely. It doesn't have the signature of a government.”
–“I have always been deeply opposed to bitcoin. It only serves criminals, drug traffickers, money laundering, tax evasion…”
Donald Trump, however, assures that the banker has watered down his wine. Jamie Dimon no longer seems to see bitcoin as an existential threat.
BlackRock CEO Larry Fink is also tipped to join the government. Initially hostile to bitcoin, he has since completely changed his mind:
“I did my homework. My opinion of bitcoin five years ago was wrong. I now believe bitcoin is legitimate. […]. It is a legitimate financial instrument. […] It allows you to invest in something outside of government control. I firmly believe that bitcoin has a place in a financial portfolio. […] I see bitcoin as digital gold. »
Another reason for optimism is that Trump's chosen vice president, James Vance, personally holds bitcoins…
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