FX.co ★ Bitcoin space race: US-China tensions drive cryptocurrency growth

BTC is back on the rise, driven by the ongoing standoff between the United States and China. According to David Bailey, a cryptocurrency advisor to President-elect Donald Trump, Bitcoin's continued growth as a global reserve asset will trigger a "new crazy rally."

Bailey has previously stated that the new paradigm, in which digital currencies take center stage, will "pit the US, China, and a few other countries in a battle for supremacy."

In his view, China will replace Russia as the primary competitor in this expected race. According to Bailey, there are currently two Bitcoin superpowers, the US and China. "There's probably room for 2-3 more and that's it," he added.

Currently, the United States leads the world in Bitcoin holdings. Estimates suggest that American wallets contain around 200,000 BTC. China, which still maintains an anti-cryptocurrency stance, ranks second with 190,000 BTC. Coins held by Chinese individuals are largely confiscated from financial pyramids and fraudsters.

Bailey predicts that two or three countries will hold seven-figure amounts of Bitcoin in the near future. For the next 30 countries, the number will be limited to six-figure BTC amounts. The rest will never surpass five figures in BTC. "The Bitcoin space race has begun," he concludes.

Notably, in November 2024, Bailey urged US authorities to establish a national strategic BTC reserve as soon as possible in order to get ahead of other countries preparing to launch similar initiatives.