In a week packed with potential market-moving events, 10x Research is cautioning traders against shorting Bitcoin BTC/USD, especially in light of former President Donald Trump‘s upcoming speech at the Bitcoin 2024 conference in Nashville.
What Happened: According to its new report, “Taking profit, or even shorting Bitcoin ahead of Trump’s Nashville speech, could turn out to be an expensive exercise.”
The report emphasizes the significance of Bitcoin currently trading near its previous bull market all-time high of $68,300, describing it as “the line in the sand.”
The research suggests that if Bitcoin successfully trades above this level, it could trigger a parabolic move similar to previous bull markets.
“Bitcoin tended to rise parabolically once above previous all-time highs,” the report states.
Adding to the anticipation, there are widespread rumors that Trump might announce Bitcoin as a strategic reserve asset for the U.S. during his speech on July 27.
This potential announcement gains further credibility in light of the current political landscape.
With President Joe Biden dropping out of the U.S. Presidential race, the report suggests that “no credible candidate can seriously challenge Donald Trump.”
This scenario could lead to a pro-crypto administration entering the White House, potentially reshaping the U.S. crypto landscape dramatically.
Also Read: Michelle Obama For Democratic Nominee? Crypto Bettors Think Her Odds Have Just Tripled
Why It Matters: The report also highlights the historical precedent of SEC chairs resigning when a new administration is elected.
“Historically, this meant that the SEC chair resigned when a new administration was elected, despite SEC Chair Gensler‘s term ending on June 5, 2026. He will most likely resign by January/February 2025,” the report predicts.
Furthermore, the research draws attention to the U.S. government’s current Bitcoin holdings.
“The U.S. government currently holds approximately 212,847 Bitcoins, valued at around $15 billion,” the report states. It speculates that doubling these holdings could have a significant signaling impact on the market.
While other events such as the Ethereum ETF launch and U.S. economic reports are on the horizon, the report emphasizes that “Trump’s Nashville speech will be essential.”
As the cryptocurrency market continues to evolve rapidly, investors and industry professionals are eagerly anticipating further developments.
For those seeking to stay ahead of these trends, Benzinga’s Future of Digital Assets event on Nov. 19 promises to offer valuable insights into the changing landscape of digital currencies and blockchain technology.
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