Former U.S. President Donald Trump’s keynote address at the Bitcoin 2024 conference on July 27 in Nashville has sent ripples through the cryptocurrency community, igniting a bullish sentiment.
Trump’s ambitious promises to make the United States the “crypto capital of the world” have significantly influenced social media and market reactions, making Bitcoin (BTC) the focal point of positive speculation and optimism.
Declaring that Bitcoin would one day overtake gold, he highlighted its significance not only as a technological marvel but also as a “miracle of cooperation and human achievement.”
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Trump’s pro-crypto speech sparks optimism
During his speech, Trump unveiled a bold plan to create a strategic Bitcoin reserve, pledging to keep 100 percent of all Bitcoin the U.S. government currently holds or acquires in the future as part of a “strategic national Bitcoin stockpile.”
The U.S. government currently owns more than 210,000 bitcoins, worth approximately $14 billion, seized from illegal operations like the Silk Road and BitConnect. This move confirmed rumors spread by Bitcoin enthusiasts, hopeful that endorsement of a reserve from Trump could propel the price of the cryptocurrency.
Immediately following his speech, Senator Cynthia Lummis introduced a bill proposing the U.S. government acquire 5% of the world’s Bitcoin supply and hold it for at least 20 years, further cementing Bitcoin’s role in national economic strategy.
Lummis emphasized that this initiative could significantly reduce national debt by converting excess reserves into Bitcoin, an asset with potential for growth.
Trump also announced plans to appoint a Bitcoin and crypto advisory council to design transparent regulatory guidance within the first 100 days of his next presidency.
Bitcoin sentiment surges to 16-month high
In this context, data from Santiment, a leading market analytics firm, reveals that social media sentiment surrounding Bitcoin has reached its most positive level in 16 months. The firm’s weighted sentiment index, which assesses the ratio of positive to negative comments about Bitcoin on platforms like X (formerly Twitter), indicates a strong surge.
The index is now 4.7 times above the normal standard deviation, marking the highest level since March 2023.
This data shows a dramatic shift in social media commentary towards a more positive outlook on Bitcoin, driven by Trump’s supportive remarks and policy proposals.
Moreover, the Crypto Fear & Greed Index, which gauges market sentiment, showed a ‘Greed’ score of 71, a notable increase of 24 points since June 28. This indicates a predominantly bullish outlook among investors and traders, reflecting confidence in Bitcoin’s long-term potential.
Bitcoin price analysis
Despite this wave of positive sentiment, Bitcoin experienced a slight decline in value following Trump’s speech. The cryptocurrency recorded a 1.15% drop over the past 24 hours, trading at $67,863 at press time.
This minor pullback, following a robust three-week rally, has raised questions about the asset’s ability to sustain higher prices.
However, market analysts view this correction as a natural phase to consolidate gains and build a stronger foundation for future growth.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
