|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cryptocurrency News Articles
Powell vs. Trump on Bitcoin Reserve: Analysts Claim the Federal Reserve Cannot Stop Donald Trump from Creating a Strategic Bitcoin Reserve in the U.S.
Dec 25, 2024 at 06:00 am
Last week, Powell's remarks, delivered during a press briefing following the Fed's latest monetary policy meeting, caused significant turbulence in the crypto market.
Fresh market analysis suggests that the Federal Reserve’s disapproval will not prevent former President Donald Trump from establishing a strategic Bitcoin reserve in the U.S. This comes after the U.S. Fed Chairman Jerome Powell ruled out any possibility of the central bank acquiring Bitcoin. He stated that it is not within the institution’s scope or interest.
Powell vs. Trump on Bitcoin Reserve
Last week, Powell’s remarks, delivered during a press briefing following the Fed’s latest monetary policy meeting, caused significant turbulence in the crypto market. Bitcoin price, which had been climbing earlier in the week, dropped sharply following Powell’s statement.
Predictions for the implementation of a Bitcoin Strategic Reserve (BSR) fell from 40% to 34% on prediction platform Polymarket. The broader crypto market also experienced a 7.5% decline, erasing billions in value.
🚨🚨 BIG BREAKING 👇
Analysts claim the Federal Reserve cannot stop Donald Trump from creating a strategic #Bitcoin reserve in the U.S. pic.twitter.com/AVYrl6f2eX
— Crypto Aman (@cryptoamanclub) December 24, 2024
However, experts argue that Powell’s stance might not hinder Trump’s ambitions to integrate Bitcoin into the U.S. financial framework. A recent report from Wu Blockchain explains that the former president could bypass the Federal Reserve entirely, using his executive powers to instruct the Treasury Department to establish a Bitcoin reserve.
How Is That Possible?
The Exchange Stabilization Fund (ESF), overseen by the Treasury, could play a crucial role in this strategy. Initially created to stabilize the U.S. dollar and manage financial crises, the ESF currently holds assets such as gold and Special Drawing Rights (SDRs).
Analysts suggest that Trump could issue an executive order directing the Treasury to add Bitcoin to this portfolio. The unique structure of the ESF allows it to operate without direct Congressional budget approvals, giving the President substantial control over its activities.
This approach, while rapid, has its limitations. Executive orders are not permanent and can be reversed by subsequent administrations. Despite its temporary nature, this tactic could enable Trump to act swiftly without requiring Congressional approval.
Alternatively, legislative avenues are still available. Republican Senator Cynthia Lummis has introduced the “U.S. Bitcoin Strategic Reserve Act,” which aims to formally integrate Bitcoin into the nation’s financial system. While this route offers greater long-term stability, passing the legislation would require bipartisan support in a highly divided Congress—a process that could take years.
Despite these challenges, analysts believe the Treasury is the most viable route for implementing a Bitcoin reserve. Powell’s dismissal of Bitcoin suggests that the Federal Reserve will not pursue any direct involvement in cryptocurrency markets, leaving the Treasury as the sole pathway for such an initiative.
Trump’s ongoing tensions with Powell, dating back to his first term, further fuel speculation that the former president could take decisive action to circumvent the central bank. As market participants await Trump’s next move, the potential establishment of a Bitcoin reserve remains a topic of heated debate.
Also Read: Michael Saylor Advice: Buy Bitcoin at Market Peaks
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
-
- 5 Quick 10x Crypto to Buy Now to Supercharge Your New Year
- Dec 25, 2024 at 10:05 pm
- The race for 2025's crypto winners has begun. While Bitcoin and Ethereum are still the Tay-Tay Swift and Travice Kelce of the industry – yuck, I just puked in my mouth – a handful of top 100 contenders are poised to outperform both.
-
- Memereum (MEME): Viral Blockchain Insurance Meets Decentralized Trading
- Dec 25, 2024 at 09:40 pm
- Memereum is conducting a presale for its blockchain-based insurance platform integrated with a decentralized exchange, MemeSwap. MEME has gone viral multiple times this year in an effort to provide innovative decentralized insurance solutions.
-
- SUI (SUI) Crypto Shows Strong Momentum, But New Contender MTAUR (MTAUR) Steals the Spotlight
- Dec 25, 2024 at 09:40 pm
- Sui (SUI) has been gaining attention in the cryptocurrency market. Its current price is $4.57, showing a solid 36% rise over the last 30 days. Experts predict bold targets of $10 and even $40, which has sparked interest among crypto enthusiasts. At the same time, a new contender, MTAUR, is making headlines with predictions of moving from 0.0001 USDT to 0.1 USDT. This article will explain Sui's recent price trends, its future predictions, and how the rise of MTAUR could impact the market.
-
- Rollblock: Transforming Gambling with Blockchain and GameFi
- Dec 25, 2024 at 09:30 pm
- Solana and XRP have faced market turbulence recently, prompting investors to seek safer, more rewarding opportunities. With its innovative approach and transparent ecosystem, Rollblock has quickly gained attention as a standout choice.