Bitcoin recently soared to a record high of $76,200, fueling excitement and optimism across the cryptocurrency market. Many believe this spike may be tied to former President Donald Trump’s recent election victory, which could spark further growth for Bitcoin and other digital assets. According to CoinShares, a leading digital asset management firm, the proposed “Bitcoin Act” has the potential to reshape the market’s future.
Read on to know more.
One of the most talked-about ideas under Trump’s new administration is establishing Bitcoin as a strategic reserve asset for the United States. James Butterfill, head of research at CoinShares, explains that the proposed plan would see the U.S. government acquire up to 5% of Bitcoin’s total supply. This move aligns with Trump’s earlier pledge to make the U.S. “the crypto capital of the planet” by creating a Bitcoin reserve.
Butterfill notes that treating Bitcoin like gold in the national reserve would bring it to new levels of legitimacy and stability, positioning it as a significant financial asset for the country.
Rising Demand from Institutions and Government
If passed, the Bitcoin Act could drive up demand from both institutional and government sectors, potentially lifting Bitcoin’s value further. This initiative would not only support institutional investments but also create an environment where the government could hold Bitcoin as part of its reserves.
The idea of a national Bitcoin reserve isn’t entirely new. Earlier this year, Senator Cynthia Lummis introduced the “BITCOIN Act,” which proposed that the government gradually acquire 1 million BTC over the next five years. The proposal, aimed at boosting U.S. innovation and global competitiveness in finance, gained traction with Trump’s campaign, which supported the concept.
Advocates like Lummis believe this strategy could help reduce national debt and strengthen the U.S. as a leader in the digital economy.
Trump’s stance on the U.S. Securities and Exchange Commission (SEC) could play a big role in shaping the crypto market. He has previously criticized the SEC’s strict approach under Gary Gensler, calling for friendlier policies on digital assets.
With his election, experts believe we may see changes in SEC leadership that support crypto growth. These potential changes could bring significant benefits to the crypto industry, especially for U.S.-based firms like Coinbase and Galaxy Digital.
As the White House gears up for a pro-crypto era, the world watches to see if Bitcoin will truly earn its place alongside gold.
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