Bitcoin recouped most of the week’s losses as investors awaited former United States President Donald Trump’s appearance on stage at the Bitcoin Conference in Nashville, Tennessee.

“No one is inclined to short Bitcoin on the weekend,” 10x Research CEO Markus Thielen wrote in a July 25 analysis note.

With this statement, Thielen stated that investors feared a sudden increase in the price of Bitcoin and therefore turned to long positions instead of taking short positions. If Trump is elected president in the elections, the possibility of announcing a strategic Bitcoin reserve at the Bitcoin Conference is considered a high expectation.

Thielen stated that this strategic reserve announcement, which could cause a large increase in the price of Bitcoin, influenced investors to take long positions instead of taking short positions. He stated that future traders avoid taking short positions due to this expectation and are worried about the price of Bitcoin rising.

“Because when Trump announces a strategic reserve, the price of Bitcoin gaps upward,” Thielen said.

Futures positions are currently outweighed by long positions. Even a small retracement in Bitcoin price to $65,000 could put $1.11 billion worth of long positions at risk, according to CoinGlass data.

Thielen also emphasized that Trump took into consideration the powerful crypto lobby and that this lobby collected $150 million.

At the time of publication, Bitcoin is trading at $66,985 and is up 4.42% in the last 24 hours, according to CoinMarketCap data.

Thielen stated that the US Treasury Department has $600 billion worth of gold reserves, but the government seized $15 billion worth of Bitcoin. This shows that Bitcoin has a high value and is considered an important investment tool.

Thielen stated that there is a possibility that Trump will announce his plan to adjust the balance between the two assets. Following this statement, Trump predicts that Bitcoin could rise to approximately 10% of gold reserves or target a higher rate.

Thielen stated that such a statement could cause the market to move and major changes could occur in the market without having to wait for Trump to be elected president.

Courchesne explained that the Department of Justice will transfer the seized Bitcoin directly to the Department of Treasury, so that the Treasury can accumulate and hold this scarce asset in the long term.

This shows how the obstacles to Bitcoin being accepted as an official reserve can be overcome and how this asset can be integrated into the wider financial system.