Following Donald Trump’s election victory, the crypto community is hopeful for a U.S. Bitcoin strategic reserve to counter US national debt. By Bhushan Akolkar 36 mins ago
Highlights
- Senator Cynthia Lummis is already pushing the envelope with Michael Saylor supporting her.
- She suggested the U.S. government to hold 5% of Bitcoin’s total supply i.e. 1 million Bitcoins.
- Trump’s Bitcoin reserve proposal could spark a wave of institutional and governmental interest worldwide.
Just as Donald Trump seized a decisive victory for the Republican party yesterday, the crypto community is now looking forward to the United States building a Bitcoin strategic reserve. During his election campaign, Trump actively backed BTC and even floated the idea of holding it as a reserve and writing Bitcoin cheques to reduce the $35 trillion US national debt.
Will the US Build Its Bitcoin Strategic Reserve?
Crypto industry veterans and lawmakers alike have joined to support the idea of having a Bitcoin strategic reserve in place. Soon after Trump’s victory yesterday, Wyoming Senator Cynthia Lummis tweeted: “WE ARE GOING TO BUILD A STRATEGIC BITCOIN RESERVE”. Later, even MicroStrategy executive Chairman Michael Saylor tweeted in her favor.
The United States needs a Strategic #Bitcoin Reserve. https://t.co/ZKy3WMbuaz
— Michael Saylor⚡️ (@saylor) November 6, 2024
Senator Cynthia Lummis has been actively promoting Bitcoin over the past few years. Earlier this year in July, during the Bitcoin 2024 conference in Nashville, Lummis stated that after the victory at the White House, they would convert the excess reserves at the 12 Federal banks of the US, into Bitcoin gradually over a period of five years.
She also proposed that the US government should have at least 5% of the total BTC supply i.e. 1 million Bitcoins as part of its reserve holdings. This would be nearly 4 times the Bitcoins that the US government holds ie. 218K BTC as per the Arkham Intelligence data.
Will Donald Trump Trigger A Global FOMO?
Following Donald Trump’s victory yesterday, the Bitcoin price already made a new all-time high amid the growing calls for $100K levels. However, if Donald Trump announces a Bitcoin strategic reserve for America, it could potentially trigger a major FOMO across top economies and central banks. Popular crypto investor Anthony Pompliano wrote:
“If the United States establishes a bitcoin strategic reserve, it will kick off a global FOMO unlike anything we have ever seen before”.
James Butterfill, head of research at CoinShares also added: “If implemented, the Bitcoin Act could drive considerable institutional and governmental interest in Bitcoin, potentially accelerating its growth and pushing its value to new heights”. It might also trigger massive inflows in spot Bitcoin ETFs moving ahead.
Another Bitcoin strategist Dylan Leclair believes that the U.S. government will enact a law within the next three months for the active accumulation of Bitcoin as a strategic reserve asset. Meanwhile, other nations are anticipated to quietly move ahead in preparation, aiming to secure their own reserves in advance. The countdown has officially begun, he wrote.
Obviously, if this news becomes true, we might never see BTC at the current price levels again. However, how far can Bitcoin go from here? Matthew Sigel, head of digital assets at VanEck recently stated that by 2050, Bitcoin would be worth $3 million and used as a Global reserve asset compounding at a rate of 16%, thereby making it a realistic target.
JUST IN: VanEck predicts #Bitcoin will be worth $3 million and used as a global reserve asset by 2050. pic.twitter.com/TEsvd9S34L
— Watcher.Guru (@WatcherGuru) October 28, 2024
