Bitcoin Price Declines Despite Trump’s Support for Virtual Currency
Bitcoin’s price fell to $84,418 despite President Trump’s supportive comments about establishing the U.S. as a cryptocurrency hub. Analysts noted that expectations for pro-crypto policies were already reflected in the price. The President’s remarks on stablecoins highlighted their potential to strengthen dollar dominance.
Bitcoin experienced a decline in value despite positive sentiments from U.S. President Donald Trump regarding virtual currency policies. On the afternoon of September 21, the cryptocurrency’s price was recorded at $84,418, reflecting a 1.7% decrease from the previous day. Following an increase due to speculation about the Federal Reserve lowering interest rates, Bitcoin’s value dropped significantly within a day, moving from $87,301 to approximately $84,000.
In a pre-recorded speech at a virtual asset conference in New York, President Trump highlighted his vision of establishing the United States as a leading hub for virtual assets and innovation in financial technology. This assertion aligns with his campaign promises made last year. President Trump emphasized, “It will make the United States the capital of virtual assets and dominate virtual assets and next-generation financial technologies.”
Furthermore, President Trump conveyed his commitments to maintaining the U.S. bitcoin holdings within strategic reserves, reassuring that the government would not sell its bitcoins. He proposed the elimination of excessive regulations hindering virtual assets, though analysts noted his statements did not surpass current market expectations.
Analyst Kim Byung-joon from Disfred Rechercher remarked that the subsequent decline in Bitcoin prices following Trump’s speech indicates that market sentiments regarding political support for cryptocurrencies have already been integrated into current pricing. He predicted that shifts in Bitcoin’s value would be more influenced by broader economic factors, such as the Federal Reserve’s policies and international reactions to tariffs under the Trump administration.
Additionally, President Trump addressed the potential of stablecoins, asserting that “Dollar-based stablecoins will help strengthen dollar dominance,” and urged Congress to legislate on the matter.
In summary, despite President Trump’s reaffirmation of support for Bitcoin and virtual assets, the cryptocurrency’s price has declined due to market expectations being met. Analysts suggest that future fluctuations will be more significantly driven by macroeconomic factors rather than political promises. The emphasis on stablecoins further underscores the administration’s strategy to enhance the dollar’s dominance in the global financial ecosystem.
Original Source: www.mk.co.kr
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