Will Donald Trump’s Crypto Policies Drive Bitcoin to $120K? Frank Holmes Weighs In

The post Will Donald Trump’s Crypto Policies Drive Bitcoin to $120K? Frank Holmes Weighs In appeared first on Coinpedia Fintech News In a Kitco news interview , Frank Holmes, CEO of U.S. Global Investors and Executive Chairman of HIVE Digital Technologies, believes that in the coming years, alternative assets like gold and Bitcoin will play a bigger role in investors’ portfolios. Holmes explained that many investors are worried about global issues like rising debt and political instability, which are pushing them to seek safer investment options. This is where gold shines, as it tends to perform well when the economy is unstable. Holmes also sees Bitcoin, often referred to as “digital gold,” as a key asset. He noted that younger generations are more inclined to invest in digital assets, and Bitcoin ETFs (exchange-traded funds) are making it easier for traditional investors to enter the cryptocurrency market. These factors are slowly helping Bitcoin gain wider acceptance as a legitimate and strategic asset, with many seeing it as a form of “portable” wealth. Could the U.S. Swap Gold for Bitcoin? A recent proposal from Wyoming Senator Cynthia Lummis to convert some of the U.S. government’s gold reserves into Bitcoin has sparked debate. The U.S. already holds around 8,000 tons of gold and 200,000 Bitcoin, but Lummis wants the U.S. to acquire 1 million Bitcoin over the next 20 years. Holmes is skeptical, believing that instead of selling gold, the government might look to use government bonds to buy more Bitcoin, much like how some successful investors are adding Bitcoin to their portfolios. Holmes sees this as a strategy to get people thinking about Bitcoin’s value, but he thinks the U.S. will only sell gold to make the switch. Bitcoin’s Price Fluctuations: Healthy or Concerning? Bitcoin’s price is known for being volatile, and Holmes believes that’s just part of the game. He explained that Bitcoin’s price moves are much more dramatic than traditional assets like stocks. For example, it can rise or fall 15% quickly, while the stock market usually moves by just 3%. Holmes sees these sharp price changes as normal, and he believes recent price drops are just a healthy pause before Bitcoin moves up again. In short, this is just a temporary break, and fear of $85K is stemming from the Fed’s rate cut. Once this is over the prices will soon touch $120K as expected by many, probably after Trump takes charge and creates a crypto-friendly environment as promised.