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Bitcoin Updates: Crypto Tensions Escalate as Trump Moves to Surpass China in Bitcoin Strategy

Bitcoin Updates: Crypto Tensions Escalate as Trump Moves to Surpass China in Bitcoin Strategy

Bitget-RWA2025/11/06 18:52
By:Bitget-RWA

- Trump administration unveils Bitcoin strategy to counter China and secure dollar dominance via Strategic Bitcoin Reserve and corporate adoption. - Strategy (formerly MicroStrategy) acquires 397 BTC, boosting holdings to $69.1B, surpassing most sovereign reserves through equity offerings. - Executive order halts crypto enforcement, creates seized-asset reserve while GENIUS Act rejects CBDC to prioritize private-sector innovation. - U.S. corporate Bitcoin holdings exceed $110B, but challenges include regul

The Trump administration has launched a comprehensive initiative to establish the United States as the dominant global

powerhouse, rolling out an ambitious aimed at countering China's expanding role in digital currencies and reinforcing the dollar’s supremacy in the shifting financial world. Central to this campaign is the creation of a Strategic Bitcoin Reserve, coupled with a surge in corporate Bitcoin accumulation, as firms like Strategy (previously MicroStrategy) amass billions in Bitcoin holdings.

Strategy, recognized as the leading corporate purchaser of Bitcoin, revealed on November 3 that it had bought an additional 397

for $45.6 million, raising its total to 641,205 now worth $69.1 billion at present market rates. This acquisition, one of the company’s smaller recent investments, comes after a 26.1% return on its Bitcoin assets so far this year.
Bitcoin Updates: Crypto Tensions Escalate as Trump Moves to Surpass China in Bitcoin Strategy image 0
Strategy’s Bitcoin portfolio now exceeds the reserves of most national treasuries, with an average purchase cost of $74,057 per Bitcoin, according to a .

The company has financed these purchases through a series of at-the-market stock offerings, securing $69.5 million just last week. These funds were allocated directly to Bitcoin acquisitions, highlighting CEO Michael Saylor’s ongoing belief that Bitcoin is the “digital gold” of this century, as noted in

. Analysts point out that since Strategy shifted its focus to Bitcoin in 2020, its stock (MSTR) has soared over 1,700%, despite recent fluctuations in both equity and crypto markets, according to .

During remarks at the American Business Forum in Miami, Donald Trump described Bitcoin as a key pillar of America’s economic and security agenda. “America must lead in crypto, not China,” he asserted, pledging to end what he called the Biden administration’s “war on cryptocurrency.” Trump signed an executive order suspending federal crackdowns on crypto businesses and introduced the Strategic Bitcoin Reserve, which will consist of confiscated digital assets, as outlined in

.

The administration also enacted the

, a regulatory framework for stablecoins intended to strengthen America’s leadership in digital finance, while rejecting the idea of a central bank digital currency (CBDC). Treasury officials maintain that innovation from the private sector, rather than government-issued digital money, will ensure the dollar’s continued global preeminence.

This U.S. approach comes as China continues to broaden its reach in the crypto industry, despite domestic prohibitions on trading and mining. While the Chinese government has prioritized its official digital yuan (e-CNY), it’s estimated that Chinese citizens collectively own 194,000 BTC—worth $20.7 billion—according to a

. Trump cautioned that China’s progress in blockchain and artificial intelligence represents a direct threat to U.S. economic leadership, urging decisive action to maintain America’s advantage.

At the same time, the U.S. has become the world’s largest Bitcoin holder, with institutional investment accelerating across industries. Publicly listed firms now possess over $110 billion in Bitcoin, with Strategy’s holdings making up almost 3% of the total supply, as reported by a

.

Following the administration’s announcements, Bitcoin’s price has seen volatility, dropping below $109,000 soon after Strategy’s latest buy before settling near $111,000, as covered by Bitcoin Magazine. While corporate purchases have historically triggered price rallies, experts now emphasize that broader institutional participation and macroeconomic trends are increasingly shaping the market.

Senator Cynthia Lummis, a prominent supporter of cryptocurrency, has put forward a controversial proposal to liquidate Federal Reserve gold reserves in order to acquire 1 million bitcoins—a move she argues would eliminate the national debt and secure a strategic asset for the future, according to a

. Detractors, however, warn that such a strategy could expose the government to the risks of a still-maturing asset class.

As the U.S. accelerates its efforts to lead in the crypto sector, obstacles persist. The ongoing government shutdown has stalled crucial regulatory measures, and America’s reliance on China for mining equipment and rare earth elements complicates the transition—issues also raised in the moomoo post. Nevertheless, with the Trump administration intensifying its focus on Bitcoin and corporations continuing to expand their reserves, the digital asset’s place in the global financial system appears increasingly secure.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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