Despite the fact that Trump launched his own meme coin several days before his inauguration, he did not mention crypto in his inauguration speech. The incoming President focused on his favorite topic – illegal immigration – and promised to end ‘American decline’.
Not surprisingly, the lack of Bitcoin’s mention served as a bearish catalyst for the world’s main cryptocurrency. There was no panic, though. Why did Trump not mention Bitcoin and what to expect in the upcoming months?
Traditionally, an inauguration speech focuses on the topics that the incoming President believes to be the most important for the nation. Despite the sharp rise of crypto popularity and the fact that it became a part of Trump’s presidential campaign, crypto is not in the top list for the average voter.
Some analysts speculated that support for crypto or the strategic Bitcoin reserve idea could “sneak” into the inauguration speech. Truth be said, these were wild speculations that had little chance of turning true regardless of Trump’s views on the crypto industry. The inauguration speech is just too important to focus on an emerging industry that has not yet proved its sustainability in the eyes of the general public.
Overall, the market showed that it had already matured, so there was no material sell-off after Trump did not mention Bitcoin during his speech. Meanwhile, bills to create a strategic Bitcoin reserve have been already introduced in more than 10 states.
Politicians benefit from presenting themselves as pioneers who promote new technology, so it is reasonable to expect that more bills targeting the creation of a strategic Bitcoin reserve will appear in the near future. These efforts will keep Bitcoin-related discussions in the mainstream press, serving as a positive catalyst for crypto markets.
In the upcoming months, crypto investors will stay focused on the potential “race to buy Bitcoin” after the creation of the strategic Bitcoin reserve fund. The idea is just too big to ignore, so it would be psychologically hard to sell BTC (and even harder to short BTC, betting on the potential decline of its price).
There’s no doubt that companies who buy BTC, as well as investment funds, would double their lobbying efforts if they see that the idea is gaining traction. From a big picture point of view, the idea of a strategic Bitcoin reserve fund is just getting started. This idea will remain the key bullish catalyst for Bitcoin and the crypto market in general in the near term.
Meanwhile, the “physical support” for the market will come from businesses who adopted the Bitcoin strategy and are regularly buying BTC. Microstrategy shareholders have recently approved a massive share increase to fund Bitcoin purchases, so Saylor will soon have more money to put into the crypto market.