it's happening president Trump is finally expected to make an announcement on the Bitcoin strategic reserve at the White House crypto summit tomorrow what should we expect what are insiders saying meanwhile the IMF has prohibited El Salvador from continuing to accumulate Bitcoin for their own reserve what are they afraid of and is the US government involved and why is Boule openly defying them by continuing to buy Bitcoin plus is Bitcoin getting ready to break out of all-time highs priced in gold and we take a look back at 2021 to see how this catalyst could result in a face melting rally to $400,000 per coin this year the White House is hosting their first ever crypto summit tomorrow and President Trump is expected to announce clarity and outline plans for a Bitcoin strategic reserve for the country the dust has settled after Trump's questionable post on Sunday where he mentioned a peculiar basket of crypto that would apparently be in the reserve trump's commerce secretary Howard Lutnik gave a statement to the press yesterday where he suggested that Bitcoin would receive unique status under Trump's plan lutnik said quote "A Bitcoin strategic reserve is something the president's interested in. " He spoke about it all during the campaign trail and I think you're going to see it executed on Friday he continued "So Bitcoin is one thing and then the other currencies the other crypto tokens I think will be treated differently. " It's also very notable that ahead of Friday's summit the founders of the three biggest US-based retail crypto exchanges Coinbase Kraken and Gemini all signal they prefer a Bitcoin only reserve if there's one at all and then there's perhaps the most influential attendee to the summit Michael Sailor whose company strategy owns 2.
4% of the entire Bitcoin supply holding just shy of half a million Bitcoin sailor was on Fox Business yesterday giving his opinion on the reserve and outlining the clear delineation between different digital assets being proposed do you think taxpayer money should be used to purchase these tokens and points to fill the reserve well I think the way to think about the industry is there's digital commodities that's Bitcoin an asset without an issuer there's digital currencies like the stable coins that's really important for US dollar supremacy and digital commerce there are digital securities like tokenized stocks and bonds that will actually provide a capital efficiency and globalization for American securities and then there are digital tokens assets with issuers that provide digital utility that are very interesting and compelling their role is capital creation for the small and midsize companies that are blocked from the capital markets right now I think that it's wise to capitalize a country or a company on a commodity an asset without an issuer something like a property you could buy oil bitcoin is a commodity i think that uh is is attached to a company Ripple i think that those are tokens and we should have a regulatory framework to allow them to be issued because issued but in the reserve should they be in the reserve i think the emerging consensus in the industry is that Bitcoin should be the element in a strategic reserve over the long term for the country but if you wanted to support various investments in a sovereign wealth fund that would be up to the executive branch so let's be clear i'm hearing you say the reserve fund should really have the tested one and that is Bitcoin and not Salano or or Cardon Cardano or Salana the important thing to keep in mind is Bitcoin is the one universally agreed upon foundational asset in the entire crypto economy because it's the asset without an issuer it's neutral 99% of the energy and the capital has flown into that one so as Sailor points out the consensus in the broader industry is that Bitcoin is the only one that makes sense in the reserve due to the fact that it's an asset without an issuer and the only one considered to be commodity-like trump's AI and cryptosar David Sax posted this banger on X today over the past decade the federal government sold approximately 195,000 Bitcoin for proceeds of $366 million if the government had held the Bitcoin it would be worth over 17 billion today that's how much it has cost American taxpayers not to have a long-term strategy matt Hogan CIO of Bitwise wrote this in a memo to investors this week after the dust settles I suspect the final reserve will be nearly entirely Bitcoin and it will be larger than people think besides clarity on regulation and policy regarding all digital assets it's still unclear if meaningful plans regarding a Bitcoin strategic reserve will be announced tomorrow or not regardless one thing is crystal clear the Overton window has shifted massively in regards to Bitcoin on the global geopolitical stage and the fact that these types of conversations are happening at the highest levels of government is a massive deal smaller nations like El Salvador and Bhutan were the earliest movers in this monetary revolution the prime minister of Bhutan spoke with Al Jazer recently about his nation's experience in Bitcoin mining in Bhutan gold is everywhere a Buddhist symbol of the everlasting nature of enlightenment now this small Himalayan kingdom is investing in a future it hopes will be blessed with what backers call digital gold Bitcoin it's also finite and supposedly everlasting there are hundreds of people who have made billions of dollars on the back of Bitcoin why aren't governments doing more even if they seem to be prime minister's chairing top says bitcoin is a strategic reserve one currently worth more than a billion dollars we have used bitcoin to for health to provide free healthcare for our environment but these are minor the main use of bitcoin has been to finance the salaries of public servants well Mrprime Minister it seems like governments around the world have finally gotten the memo like El Salvador who became the first country in the world to make Bitcoin legal tender in 2021 and has since been adding to their own strategic reserve today holding over 6,000 Bitcoin however the Latin American nation's Bitcoin future is uncertain as a recent agreement with the IMF explicitly prohibits them from continuing to use public funds to purchase additional Bitcoin as part of a $3. 5 billion loan to help service their balluting debt but the president of El Salvador Naib Bukell confusingly continues to purchase additional Bitcoin nearly every day since the agreement has been signed he even posted on X insinuating that El Salvador's Bitcoin purchases would not stop so either he's found some sort of loophole or he's outright defying the IMF and breaking the agreement head of alpha strategies at Bitwise Jeff Park thinks the actions of the IMF is the real signal on whether a US strategic Bitcoin reserve is close or not since the IMF is basically run by the United States as they have 20% of the total voting power giving it veto authority park thinks this makes it clear that the US doesn't want sovereigns holding BTC on their balance sheet as it would undermine the dollar's hedgeimonyy park then goes on to say that the real signal in Bitcoin's price appreciation in the near term is not the strategic reserve but declining interest rates which he says will lead to a sustained rally i'm not sure I agree with Park that the Trump admin wanting a strategic Bitcoin reserve and the IMF not wanting other sovereigns to accumulate can't both be true at the same time but I do agree with his assessment that the real driver of number go up this year will be Trump lowering interest rates and a further increase in the global money supply as I've covered in previous videos the runup in Bitcoin's price over the last year from around 30K to where we are now has predominantly been on the backs of hype surrounding the ETFs the having Trump's support during the campaign in his eventual election win in November all of the price move up has happened with very little increase in the money supply which many argue is the main driver of Bitcoin's huge price increases historically but now as interest rates globally start to come down and as the Fed gets closer to lowering rates the money printer is just getting warmed up which I think translates to a massive move up for Bitcoin to give you an idea of how fast this thing can move when the money printer is turned on here's a post from Bitpane on X on October 16th 2020 the Bitcoin price was $11,500 just 126 days later on February 19th 2021 it was 57,500 an increase of 5x this corresponds to a weekly compounded growth rate of 9. 4% sustained over 18 weeks a comparable move today would take us to $435,000 by July 8th another chart I love is Bitcoin priced in gold with gold's historic rally over the last year Bitcoin is still just knocking on the door of the previous all-time high from late 2021 as this chart shows it's looking primed for a breakout this again makes me think that this entire run up to 100K was just the first inning of this bull run gold historically runs first and Bitcoin runs after if history repeats expect the second half of this year to get wild so I know I sound like a broken record but you're not too late to Bitcoin start stacking today with services like Swan visit swan.
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