The crypto community is eagerly waiting for President Donald Trump to announce the Bitcoin executive order. During the campaign of Trump, one of the major promises is the Bitcoin executive order.
At the Davos WEF event, Trump reignited the community’s hope by saying, “The United States would be the world capital of crypto and artificial intelligence.”
As per the Strategic Bitcoin Reserve, the U.S. government is to maintain its current Bitcoin holdings. The plan also adds that the government has to collect millions of bitcoins, around 5% of the total supply, in the next five years.
Many states like Florida, Wyoming, and Massachusetts have already introduced bills to add Bitcoin to their reserves. The addition of Bitcoin may be a smart financial move. Since states can’t print money like the federal government, the addition of Bitcoin can help to secure a financial future and protect against economic instability.
Many are wondering if Trump can pass this today, while such decisions aren’t taken overnight, U.S. Senator Cynthia Lummis urges that Congress needs to pass the bipartisan bill to create Bitcoin Strategic Reserve legislation.
Additionally, Lummis, appointed as the chair of the Senate Banking Subcommittee on Digital Assets, will play a crucial role in ensuring that Congress passes the bipartisan bill for a Bitcoin Strategic Reserve.
The inauguration of Trump had a notable impact on Bitcoin, causing initial fluctuations in its price and making it more volatile. On Tuesday, it reached an all-time high of $109,114.88 before dropping to $101,966 following Trump’s inauguration speech.
Recently, Larry Fink, CEO of BlackRock, stated that Bitcoin could become a safe asset during economic struggles. He believes that if more institutions start using Bitcoin, then the price could reach $500,000 and even $700,000.
Other major cryptos like Ethereum and Solana also saw a small drop following the trend of Bitcoin. The recent launch of Trump and Melania’s memecoins caused market fluctuations but sparked speculation about the administration’s support for crypto.
With Trump’s upcoming announcement and growing interest from states and institutions, the crypto market could see significant changes in the coming days.
In addition, experts believe that Trump’s administration may introduce policies to make investing in and using crypto easier. Crypto advocate Anthony Pompliano highlighted three main areas that could change.
First, banks should allow users to securely hold their cryptocurrencies. Next, he suggested setting up a system for the government to buy Bitcoin for its reserves. Finally, there should be simplified crypto taxes, especially by removing capital gains taxes on Bitcoin purchases.
Also Read: Bitcoin Hits $106K as Trump Hints at U.S Crypto Reserve Plan
