itcoin rose more than 4% to over $67,000 after speculation on comments about cryptocurrency from former president Donald Trump at an upcoming conference. Traders are trying to anticipate what the new regulations may mean for their current trading practices.
For its part, Bitcoin rose to its highest level in a week after analysts attributed the jump to positioning in light of Trump's keynote at the Bitcoin 2024 event on July 27. If elected again, there will be clues to how his administration could handle it in the new term from market participants.
Traders Hold Off on Shorts Out of Caution
Futures traders are not willing to short either, as Markus Thielen the CEO of 10xResearch noted. He says that if Trump backs the idea to set strategic reserves, it will cause a big rally. Futures data on Coinglass indicate extensive long positioning, even a modest selloff would be dangerous because more than $1 billion worth of longs are defenseless.
Traders are being cautious considering the possibility of volatility. Being the biggest cryptocurrency, Bitcoin prices can fluctuate in response to remarks made by influential figures. The market is waiting for his comments with cautious optimism.
Speculation Surrounds Potential Reserve Plans
Thielen suspects that Trump might raise the issue of changing proportions between Bitcoin and gold within his reserves. That total is significantly lower than the $600 billion gold stash. Trump could push for a 10% quota which would represent major progress. Without gaining confirmation of his presidential bid, the hint alone might trigger a buying rally.
