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- Crypto advocates are pushing the US government to keep a Bitcoin reserve.
- With Donald Trump back in the White House, the projection for sustained Bitcoin growth is high.
Following Donald Trump’s election victory, the crypto community hopes to create a Bitcoin (BTC) reserve in the United States. This projection comes from President Trump’s active support of Bitcoin during his election campaign. He even proposed holding the coin as a reserve and writing Bitcoin cheques to reduce the US national debt of $35 trillion.
Proponents Supporting Bitcoin Reserve
Some crypto industry experts and lawmakers have gathered to promote the establishment of a Bitcoin strategic reserve. Shortly after Trump’s victory declaration on Wednesday, Wyoming Senator Cynthia Lummis posted, “WE ARE GOING TO BUILD A STRATEGIC BITCOIN RESERVE.”
It is worth noting that Senator Lummis has aggressively promoted Bitcoin in recent years. CNF reported that the Senator had pushed for a bill requiring the Federal Reserve to hold Bitcoin as a strategic reserve asset. The proposal resembles how the Central Bank holds gold and foreign currencies. Her team anticipates that Donald Trump would sanction the bill and the concept behind it after getting into office.
Lummis outlined a plan to convert the excess reserves at the 12 Federal banks of the US into Bitcoin gradually over five years. She also advocated that the US government keep at least 5% of the total BTC supply, or 1 million BTC, as part of its reserves. According to data from Arkham Intelligence, this is approximately four times the US government’s BTC holdings, currently at 218,000 BTC.
Lummis argues that building the Bitcoin reserve would strengthen the US dollar and address national debt concerns. Intriguingly, Senator Lummis’ argument aligns with Trump’s campaign pledge to support cryptocurrencies.
MicroStrategy’s Chairman, Michael Saylor, has also pledged support for building a strategic Bitcoin reserve. Spotlighting Senator Lummis’ post, Saylor commented, “The United States needs a Strategic Bitcoin Reserve.”
Will Donald Trump Spark Global FOMO?
The Bitcoin price already reached an all-time high following Donald Trump’s victory yesterday. The leading digital asset surged by 9.6% to $75,198, with speculations that it could reach $100,000. However, Donald Trump’s announcement of a BTC strategic reserve in the US might spark a major FOMO among top economies and central banks. For now, the coin is up 0.48% in 24 hours to $74,832.
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Anthony Pompliano, a popular crypto investor, 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, explained that the Bitcoin Act if implemented, could drive considerable institutional and governmental interest in BTC. He believes it would accelerate its growth, increase its value, and likely trigger massive inflows in spot Bitcoin ETFs.
Additionally, Bitcoin strategist Dylan Leclair claims the US will pass a law allowing for active Bitcoin accumulation within the next three months. He anticipates that other countries will prepare quietly as they aim to secure their reserves in advance.
