A recent Bernstein report has spotlighted a potential game-changer for U.S. crypto policy: the creation of a national Bitcoin reserve. This move could set off similar initiatives worldwide, raising key questions about how such a reserve would be structured.
Analysts led by Gautam Chhugani believe the next phase of the Bitcoin bull market is approaching, fueled by several key positive factors. Bernstein advises investors to prepare for this new market phase, focusing on Bitcoin and Bitcoin-linked stocks.
Let’s dive into the key takeaways.
The report raises important questions about how the U.S. will manage its Bitcoin reserve. One key point is whether the U.S. Federal Reserve or the Treasury will be responsible for buying Bitcoin. If the Federal Reserve gets involved, it would need approval from Congress. The report also explores how the Fed would finance such purchases, suggesting it could either issue debt or sell some of its gold reserves to fund the reserve.
Bernstein suggests the U.S. government might add the $20 billion in Bitcoin seized from criminal enterprises to the national reserve, giving it a strong start.
In addition to the Bitcoin reserve, Bernstein also notes that the Trump administration has unveiled plans for a sovereign wealth fund (SWF). This fund could target U.S. crypto companies and market leaders, viewing them as strategic assets worth investing in.
The report highlights recent SEC 13F filings as a sign of growing institutional interest in Bitcoin, which could drive the next bull run. Notable investments include Mubadala, an Abu Dhabi sovereign wealth fund, which invested $437 million in Bitcoin ETFs. Major institutions like Goldman Sachs, Barclays, and Paul Tudor Jones’ firm have also increased their Bitcoin holdings.
Other Key Factors in Focus
Several other developments are helping to push Bitcoin toward a significant price increase. Strategy’s $742 million Bitcoin purchase, strong inflows into Bitcoin ETFs, and the SEC’s repeal of SAB 121—allowing banks to offer crypto custody services—are all playing a part in Bitcoin’s bullish outlook.
The idea of a U.S. Bitcoin reserve is gaining traction, with 21 states now introducing bills to invest public funds in Bitcoin. States like Arizona, Texas, Illinois, and Utah are already taking steps to add Bitcoin to their treasuries. VanEck estimates that if these bills pass, they could create up to $23 billion in demand for Bitcoin, further boosting its value.
The coming months could witness a dramatic shift in the way nations, companies, and investors view Bitcoin. We’ll keep you updated.
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