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Trump's Bitcoin Reserve Odds Drop Amidst Crypto Uncertainty

Coin WorldFriday, Jan 31, 2025 10:20 am ET

1min read

The probability on Polymarket of Trump establishing a strategic Bitcoin reserve within 100 days of taking office has decreased to 15%.

This shift in sentiment comes amidst a backdrop of uncertainty surrounding the former president's potential return to politics and his stance on cryptocurrencies. While Trump has been critical of Bitcoin in the past, his views on the matter have not been explicitly stated since his departure from office.

Analysts suggest that the decrease in probability may be attributed to several factors. Firstly, the political landscape has shifted significantly since Trump's last term, with a new administration in place that has taken a more favorable stance towards cryptocurrencies. Secondly, the crypto market has evolved rapidly, with new technologies and regulations emerging that may make a strategic Bitcoin reserve less feasible or desirable.

Moreover, the recent collapse of FTX and the subsequent fallout have cast a shadow over the crypto industry, potentially making it more challenging for any political figure to embrace cryptocurrencies without facing scrutiny. The ongoing legal proceedings against Sam Bankman-Fried, the founder of FTX, have also highlighted the risks associated with the crypto market.

Despite the decrease in probability, some experts remain optimistic about the potential for a Trump-backed cryptocurrency project. In recent weeks, the Trump-backed crypto project World Liberty Finance (WLFI) has increased its ETH holdings by 2972 coins in the past 12 minutes, suggesting a continued interest in the crypto market.

However, it is essential to note that the political landscape and the crypto market are both highly dynamic and unpredictable. As such, the probability of Trump establishing a strategic Bitcoin reserve within 100 days of taking office may change as new information emerges and the political and economic climate evolves.

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