Trump/Lummis Push for Strategic Reserve, Cantor Wades Further into Crypto
Crypto Market Update
The big news this weekend was the speech given by former President Trump at the Bitcoin conference, where he outlined his plans for integrating Bitcoin as a strategic reserve asset. This announcement triggered significant volatility as traders placed highly leveraged bets in both directions. As the volatility settled, prices rallied from Sunday into Monday morning, with BTC -1.26% briefly rising above $70,000 on most exchanges for the first time since early June. ETH 1.56% outperformed slightly, currently trading north of $3,300 after making a charge at $3,400, and SOL 0.96% briefly moved above $190, now trading just below that mark. Prices have since retraced much of their Sunday rally. A notable outperformer this morning is BCH 6.74% , which Mt. Gox creditors received BCH 6.74% along with their BTC -1.26% . The rally in BCH 6.74% could be viewed as confirmation that the market has moved beyond Mt. Gox distribution concerns. This week is packed with macro data and earnings reports, with no catalyst bigger than the FOMC meeting on Wednesday, where we expect some dialogue about September rate cuts. Before that, we have the quarterly refunding estimates from the Treasury today, which will provide insights into the amount of debt the Treasury plans to issue through the rest of the year. Rates are lower, and equities are somewhat mixed to start the week.
Trump and Lummis to Push for Strategic Reserve
On Saturday, Presidential Candidate Trump announced plans at the BTC Conference to establish a strategic Bitcoin reserve, initially funded by retaining the BTC -1.26% already held by the DOJ (approximately 1% of the total supply). He also reiterated the GOP platform that emphasizes supporting domestic mining companies, preventing a CBDC, and preserving the right to self-custody and private transactions. New points discussed included supportive comments on stablecoins and the desire to end Chokepoint 2.0. Shortly thereafter, Senator Lummis took to the stage to discuss a bill she will introduce to Congress, proposing that the US government purchase 1 million BTC -1.26% over five years to mitigate the effects of dollar debasement. We have explored various potential outcomes for this conference over the past few weeks, and this is undoubtedly the most bullish.
Cantor Launches Bitcoin-Backed Lending
Cantor Fitzgerald plans to launch a Bitcoin financing business, providing leverage to investors who hold BTC -1.26% , with an initial allocation of $2 billion, expanding in $2 billion increments as needed. Announced by Chairman and CEO Howard Lutnick at a Bitcoin conference in Nashville, the business will partner with select Bitcoin custodians, though specifics were not disclosed. Lutnick emphasized Bitcoin’s global trade potential, likening it to gold, and highlighted Cantor’s substantial Bitcoin holdings. This initiative deepens Cantor’s involvement in the digital assets space, where it already acts as a custodian for Tether and has financed several crypto companies, including miners Bitdeer, TeraWulf, Riot Platforms, and Cipher Mining.
Technical Strategy
Litecoin has begun to show gradual technical progress off the lows, and today’s push to exceed the recent consolidation from mid-July has carried LTC 3.67% to the highest levels since early July. Given that the early breakout of its three-month downtrend is now being followed up by a push above $74.21, this is considered a bullish technical development and likely can start to help LTC begin a larger rally. Initial resistance should materialize near $84.90, then $91.50. Support lies at $74.62, and cannot be broken without postponing the rally. However, today’s push higher is quite constructive and should allow for additional upside progress in the near-term.
![Trump/Lummis Push for Strategic Reserve, Cantor Wades Further into Crypto](https://cdn.fsinsight.com/wp-content/uploads/2024/07/image-105.png)
Daily Important MetricsAll metrics as of 2024-07-29 13:16:33 All Funding rates are in bps Crypto Prices
All prices as of 2024-07-29 10:00:09 Exchange Traded Products (ETPs)
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