Could Donald Trump and Elon Musk provide Bitcoin's bullish spark?
|- Trump could use Justice Department's 200,000 BTC as headstart for potential Bitcoin reserve, says analyst.
- Elon Musk hints at potential Bitcoin endorsement after US dollar value destruction post and laser eyes profile picture.
- The bearish crowd has remained silent since Bitcoin's two-week rebound.
Bitcoin (BTC) is up 1.2% on Monday, as discussions around Donald Trump making Bitcoin a reserve asset if elected president and Elon Musk's recent posts hint at a potential rally for the largest digital asset.
Elon Musk and Trump could stamp potential bullish month for Bitcoin
With the Nashville Bitcoin Conference set to begin on July 25, many investors expect the week to be bullish for Bitcoin.
Republican nominee Donald Trump is one of the key speakers at the conference and is expected to discuss a potential US Bitcoin strategy. Most crypto community members have speculated that Trump may consider making Bitcoin a US reserve asset if elected as president.
According to Bryan Courchesne, in a CNBC interview, such a move would be difficult to pull off but could catalyze an upsurge in Bitcoin's price. He noted how the Justice Department's about 200,000 BTC holdings could prove a crucial head start should Trump consider the Bitcoin reserve move if elected.
This coincides with President Joe Biden withdrawing from the upcoming US presidential election race and Tesla and X CEO Elon Musk changing his X profile picture to an image of him with laser eyes. Bitcoin proponents often use laser eyes to express their die-hard support for the largest digital asset.
Musk has also been posting about the destruction of the US dollar's value in the past few hours, a typical argument seen among Bitcoin investors.
Where are we with dollar value destruction, you might ask? pic.twitter.com/0LD8OggFqu
— Elon Musk (@elonmusk) July 22, 2024
Where are we with dollar value destruction, you might ask? pic.twitter.com/0LD8OggFqu
— Elon Musk (@elonmusk) July 22, 2024
Meanwhile, Santiment data shows that Bitcoin's rebound after the German government sale dried up has sent the crowd silent. Most investors were bearish in early July, sharing predictions of a potential large correction, especially since July has historically often been a bearish month for Bitcoin.
With the crowd going silent, Santiment said it indicates "bulls and bears are both afraid of 'getting it wrong,' often allowing prices to move any direction unimpeded until the crowd leans one direction again."
While the crypto crowd is silent, traditional investors have continued their buying spree as spot Bitcoin ETFs recorded a net inflow of $1.27 billion in the past week, according to CoinShares data. The inflows seen on Friday extended its run to 11 consecutive trading days of net inflows.
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