
With speculation mounting that incoming President Donald Trump may sign an executive order declaring a Bitcoin Reserve on day one, or pass legislation to establish a Reserve during his term, many wonder if the move could lead to a crypto supercycle.
Since Wyoming Senator Cynthia Lummis introduced the Bitcoin Reserve Act earlier this year, states like Texas and Pennsylvania have filed similar proposals. Russia, Thailand and Germany are reportedly considering proposals of their own, further ramping up pressure.
If governments are competing to secure their own stockpiles of Bitcoin, would we say goodbye to the four-year boom-bust cycle in crypto prices that many attribute to Bitcoin’s halving?
Iliya Kalchev, dispatch analyst from crypto lender Nexo, believes “the Bitcoin Reserve Act could be a landmark moment for Bitcoin signaling its “recognition as a legitimate global financial instrument.”
“Every Bitcoin cycle has a narrative trying to push the idea that ‘this one is different.’ The conditions have never been so ideal. Crypto has never had a pro-crypto US President who controls the Senate and the Congress.”
Lummis’ proposed Bitcoin Act 2024 would enable the US government to insert Bitcoin (BTC) into its treasury as a reserve asset by buying 200,000 BTC annually over five years, accumulating 1 million Bitcoin, which it would hold for at least 20 years.
Jack Mallers, founder and CEO of Strike, believes Trump has the “potential to use a day-one executive order to purchase Bitcoin” although he cautioned that it would not equate to a 1 million Bitcoin purchase.
Dennis Porter, co-founder of the nonprofit organization Satoshi Act Fund, which supports pro-Bitcoin US policy bills, also believes Trump is exploring enabling a strategic Bitcoin reserve through an executive order.
Announcement from Dennis Porter that Trump is studying an executive order for a strategic Bitcoin reserve. Source: Dennis Porter
So far, Trump’s team has not directly confirmed the claims about an executive order, but Trump was asked on CNBC if the US would create a BTC Reserve similar to its oil reserve (which could mean…
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