**U.S. President Donald Trump Endorses Cryptocurrencies, Signals Shift Away from CBDCs**
U.S. President Donald Trump has publicly endorsed cryptocurrencies, marking a strategic shift from Central Bank Digital Currencies (CBDCs) while bolstering Bitcoin’s status as part of America’s digital asset reserves. This development highlights a significant U.S. policy transition favoring private digital currencies, with potential market boosts for Bitcoin and Ethereum as Trump aims to establish U.S. dominance in the digital asset space.
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### Bitcoin Price Dynamics Amid U.S. Policy Shifts
President Trump announced the establishment of a National Bitcoin Reserve designed to propel the United States to the forefront of digital asset innovation. As part of this directive, the development of central bank digital currencies (CBDCs) is prohibited. The administration emphasizes a clear regulatory path for private digital currencies, signaling a move to make America the crypto capital of the world.
Immediate policy changes include banning CBDC development and enhancing regulatory frameworks to support digital asset innovation. Notably, Federal Reserves have begun holding Bitcoin, marking a comprehensive shift in U.S. financial policy. This active refocusing away from CBDCs aligns with broader economic policy changes currently underway.
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### Industry Reaction and Insights
The announcement has sparked mixed reactions across various sectors. Industry participants widely applaud the increased support for digital assets and the clarity brought by new regulations. Arthur Hayes, former CEO of BitMEX, commented on the move, stating:
> “Sovereign-level BTC adoption would forever change the game.”
President Trump himself expressed strong confidence in the future of digital assets:
> “GENIUS Act is going to make America the UNDISPUTED Leader in Digital Assets. Nobody will do it better, it is pure GENIUS! Digital Assets are the future, and our Nation is going to own it.”
> — Donald J. Trump, President of the United States
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### Market Overview
Did you know? The U.S. ban on CBDCs reflects historic skepticism about centralized digital coins and a clear preference for private digital currencies.
Currently, Bitcoin (BTC) is valued at $103,434.45, with a market capitalization of approximately $2,062,909,844,827.33. Bitcoin’s market dominance stands at 59.83% according to CoinMarketCap. Recent trading volume reached $67.10 billion, representing a 43.15% decline.
Despite a 30-day price drop of 16.85%, Bitcoin’s price showed resilience with a 24-hour increase of 1.62%.
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This strategic policy pivot demonstrates the U.S. government’s commitment to embracing private digital assets and setting the stage for America’s leadership in the evolving cryptocurrency landscape.
https://bitcoinethereumnews.com/bitcoin/trump-administration-supports-crypto-establishes-bitcoin-reserve/
