The recent pro-crypto political appointments in the United States have led to a surge of excitement for crypto, with many experts comparing it to a "space race" that could see the US become a key player in the digital asset industry. According to TRM Labs’ Ari Redbord, this development has created a sense of urgency and competition among nations to keep pace with the rest of the world.
A Space Race for Crypto Supremacy
In an interview on CNBC’s Squawk Box on January 6, Ari Redbord, head of legal and government affairs at TRM Labs, highlighted the recent pro-crypto appointments in US federal agencies. These appointments include:
- Scott Bessent: A hedge fund manager nominated as Treasury Secretary
- Paul Atkins: A former SEC commissioner tapped to serve as SEC chair
- David Sacks: A venture capitalist appointed as White House "crypto czar"
These nominations, Redbord noted, demonstrate a commitment to supporting digital assets, innovation, and AI. He stated: "We’re seeing people up and down the Cabinet who have been supportive of digital assets, innovation, and AI."
Beyond Bitcoin: The Future of Crypto
Redbord’s excitement for crypto extends beyond Bitcoin. He pointed out that fintechs like Stripe and Cash App are using stablecoins at scale for payments, which is a significant development in the industry. Stablecoins have traditionally been used as a store of value or investment mechanism, but Redbord sees them being utilized for cross-border payments, remittances, and other applications.
This shift towards practical use cases has the potential to drive mainstream adoption and increase demand for cryptocurrencies. As Redbord noted: "What we’re really seeing is people start to use the technology for cross-border payments, remittances, and to buy things."
Bitcoin Price Prediction
When asked about a Bitcoin price prediction, Redbord didn’t provide a specific figure but stated that it would go "significantly higher" due to incentives such as strategic Bitcoin reserves in the US and potentially other countries.
This sentiment is shared by many market analysts, who believe that Bitcoin’s price will continue to rise. On January 7, full-time crypto trader Daan Crypto Trades told his followers on X that Bitcoin has only just started its price discovery phase.
Price Discovery Phase
The concept of a price discovery phase refers to the process through which buyers and sellers interact to determine an asset’s spot price based on demand and supply. This phase is characterized by high volatility, as market participants adjust their expectations and strategies in response to changing conditions.
In the case of Bitcoin, this price discovery phase has only just begun. With the increasing adoption of cryptocurrencies and the growing awareness of their potential applications, it’s likely that Bitcoin’s price will continue to rise.
Conclusion
The recent pro-crypto appointments in the US have created a sense of excitement and urgency among experts. As Ari Redbord noted: "There’s this excitement and cadence of almost a space race where the US is now in a position to keep up with the rest of the world or even surpass the rest of the world."
With the potential for strategic Bitcoin reserves, stablecoin adoption, and practical use cases driving mainstream adoption, it’s likely that Bitcoin’s price will continue to rise. As Daan Crypto Trades noted: "Bitcoin has only just started its price discovery phase."