In March, reports emerged regarding a possible directive from former U.S. President Donald Trump to use a sovereign fund for Bitcoin acquisition, causing market fluctuations.
Rumors and Facts
Reports from Jinshi and PANews suggest former U.S. President Donald Trump might direct funds from a sovereign wealth fund into Bitcoin. The fund, overseen by Michael Grimes, formerly of Morgan Stanley, is expected to source primarily from tariffs. Although there is no official confirmation, these rumors have stirred substantial discussions in the cryptocurrency community.
Market Reaction
Bitcoin prices fell by over 1% on March 17, indicating market uncertainty. Nevertheless, Bitcoin was trading at $27,530.00. The Relative Strength Index at 45% suggests neutral conditions, underscoring the difficulty of breaking the $28,000 mark.
Expert Opinion
Expert analysis has shown mixed reactions. Scholars and economists from Northeastern Universities noted that a Bitcoin reserve could legitimize cryptocurrency as a government-backed asset, despite volatility risks. There is a call for comprehensive frameworks to integrate digital assets safely.
The potential use of the U.S. sovereign wealth fund for Bitcoin purchases remains speculation, highlighting the need for robust financial and regulatory frameworks for digital asset management at the government level.
