Bitwise Alfa Strategies President Jeff Park claimed that US President Donald Trump would postpone more Bitcoin intake until it reached a price of nearly $ 60,000. Park’s statements were made on the ground of increasing speculation around the so -called “budget in terms of budget in terms of budget, which the administration could use to obtain additional BTC for the recently established US strategic Bitcoin reserves.
Why does Trump need Bitcoin fall first?
Kriptokoin.comAs you have followed, US President Donald Trump has published an administrative order that formed the strategic Bitcoin reserve and positions the US in a way to play a leading role in the field of digital being. The management has already confirmed that it has already controlled approximately 200,000 BTC (about $ 17 billion at current prices). While the execution order prohibits the sale of Bitcoin within the reserve, it enables the Treasury and Trade Ministers to examine the “independent” ways of accumulation of additional BTC in the future and ensures that they do not bring extra cost to taxpayers.
Jeff Park’s perspective overcomes standard market comments, and focuses on the political facts, which he believes to greatly affect any presidential decision to buy BTC. In one of the parking writings, he writes:
I will give you a little secret from my primary field experience about how BTC sales work… There is one thing I know better about institutions: public officials almost never buy Bitcoin through the trend/momentum and absolutely the highest levels. The reason is simple: they do not want to be fired when the inevitable decline is experienced or worse, they do not want to damage their reputation in the public sphere.
“Donald Trump does not buy Bitcoin without falling to $ 60 thousand! “
He continues to argue that political figures, especially those who are carefully examined, such as the US President, are facing an asymmetric risk profile. The consequences of purchasing at a higher price may be destructive in terms of public relations. The park estimates that the incentives for the authorities have changed significantly when the BTC falls to more attractive levels. In this context, the park says:
Can you imagine the headlines to be thrown if Trump receives Bitcoin from $ 100,000 and this falls to 70 thousand dollars? If we look at the positive side, if the BTC goes to very cheap levels, the purchasing incentives of politicians and sovereigns will increase… It is always logical for an executive body to wait for the BTC to go down to 60,000 dollars and to buy and buy credit (who have to win elections).
Although a strategic reserve is designed as a long -term value store, it emphasizes that public officials are trying to avoid reaction if sudden downward price fluctuations. According to the Park, this political pressure reduces the likelihood of public officials to make “high -risk” moves; In particular, moves that may cause them to be exposed to question marks on accountability.
