Reclaims $70K After Trump Promotes Friendlier Regulation

Bitcoin prices surged on Monday, building on gains made over the weekend after Republican presidential nominee Donald Trump suggested more favorable regulations during his speech at the Bitcoin Convention.

Initially, Bitcoin’s reaction to Trump’s speech was somewhat negative, particularly as he did not explicitly commit to establishing a national reserve. However, buyers quickly responded after his address, leading to an increase in value.

The price of Bitcoin rose by 2.7% over the past 24 hours, reaching $70,018.00 as of 09:19 ET (13:19 GMT).

### Trump’s Vision for Cryptocurrency Regulation

During his address at the conference, Trump emphasized the need for the U.S. to take the lead in the cryptocurrency space before China. He pledged to implement more favorable regulations compared to those proposed by leading Democratic candidate Kamala Harris.

Trump proposed the creation of a crypto advisory council within the White House and suggested forming a national stockpile of Bitcoin using the U.S. government’s existing holdings, most of which have been seized through law enforcement actions.

“Never sell your Bitcoin… If I am elected, my administration will ensure that the U.S. government retains 100% of all Bitcoin it currently possesses or acquires in the future,” Trump stated.

Despite previously labeling cryptocurrency as a scam in 2021, Trump has actively engaged with the sector, allowing his campaign to accept crypto donations and launching his own series of non-fungible tokens.

Additionally, Trump promised to dismiss Securities and Exchange Commission Chair Gary Gensler, who has been known for his strict regulatory approach toward the cryptocurrency industry.

Recent polls indicate a competitive race between Trump and Harris, who has yet to present a clear plan for regulating cryptocurrency. However, given her previous experience as a prosecutor dealing with financial fraud, it is anticipated that she may continue the government’s crackdown on the sector.

Bitcoin’s pricing has benefited from speculation surrounding the possibility of a Trump presidency, having rebounded sharply over the past two weeks after reaching four-month lows. However, further increases may be limited, particularly as the defunct crypto exchange Mt. Gox continues efforts to distribute its Bitcoin holdings.

### Broader Cryptocurrency Trends

The overall cryptocurrency market also saw gains, fueled by expectations of more accommodating U.S. regulations. Speculation surrounding potential interest rate cuts by the Federal Reserve, which is set to hold a meeting this week, further supported risk-driven asset prices.

The second-largest cryptocurrency by market cap rose by 3.3% to $3,377.32, benefiting from heightened interest following the launch of spot exchange-traded funds (ETFs) that track this token last week. Other altcoins recorded gains between 1.3% and 3.3%, while select meme tokens increased by 2.3% and 1.5%, respectively.

### ETF Performance Overview

The recent launch of U.S. spot ETFs generated mixed results, with most experiencing net inflows. However, substantial outflows from Grayscale’s converted fund overshadowed these gains.

Last Tuesday, nine new spot Ethereum ETFs from eight issuers debuted, following SEC approval in May. Within the first four days of trading, BlackRock’s ETHA led with $442 million in net inflows, followed by Bitwise’s ETHW with $265.9 million and Fidelity’s FETH with $219.4 million. Other funds like VanEck’s ETHV and Franklin Templeton’s EZET also saw inflows.

Despite the overall positive trend for most ETFs, Grayscale’s ETHE faced over $1.5 billion in net outflows last week, leading to a combined net outflow of $341.8 million across U.S. spot Ethereum ETFs.

In contrast, U.S. spot Bitcoin ETFs, which launched in January, saw a total net inflow of $1.26 billion in their first four days. Excluding the inflows related to the Grayscale converted fund, Ethereum ETFs accounted for approximately 40% of the net inflows observed in Bitcoin ETFs post-launch.