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- During the Bitcoin 2024 Conference, Trump indicated plans to include Bitcoin in the U.S. strategic stockpile, keeping American-mined Bitcoin within the country.
- U.S. lawmakers like Senator Cynthia Lummis are already advocating for the government to hold a significant portion of the Bitcoin supply to address the national debt.
Now that Donald Trump has registered a historic win in both The House and the Senate this week, calls for the US to have a strategic Bitcoin reserve are on the rise. In fact, the chorus is growing to other global economies as the Chinese media is particularly highlighting this development.
One of the most-premium media outlets China Central TV (CCTV) aired this news on Thursday, following Donald Trump’s victory in the US Presidential Elections. The election results have already triggered a strong surge in the Bitcoin (BTC) price which is hitting new all-time highs. As of press time, the BTC price is trading 1.6% up at $76,031 with a market cap of $1.504 trillion.
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A major Chinese media outlet reported that the recent price surge follows President-elect Trump’s pledge to make the U.S. the world’s leading hub for Bitcoin and cryptocurrency. The report also highlighted Trump’s commitment to creating a U.S. Bitcoin reserve, strategically holding the top digital asset to strengthen the national economy.
Will Donald Trump Announce A Strategic Bitcoin Reserve?
During the Bitcoin 2024 Conference in July this year, Donald Trump said that Bitcoin will be part of the country’s strategic stockpile along with keeping all of the Bitcoins produced in America within the same country. Analysts are giving $100K as the immediate target for Bitcoin following the Trump victory, reported CNF.
The United States is going to build a strategic #Bitcoin reserve 🇺🇸
You are not bullish enough 🚀
— Bitcoin Magazine (@BitcoinMagazine) November 7, 2024
It will be interesting to see how long would it take for the Trump administration to make this announcement official as he resumes office in January. However, some Bitcoin proponents and lawmakers have already started pushing for the same. Wyoming senator Cynthia Lummis wrote:
“A Strategic Bitcoin Reserve will allow the US to address a meaningful portion of our debt + strengthen our hand. See ‘Currency Wars’ for a good primer on the ‘stupid games, stupid prizes’ cycle we are in. Let’s break the cycle and refocus on a prosperous future for Americans”.
Previously, Lummis had proposed that the U.S. government should hold at least 5% of the total Bitcoin supply i.e. 1 million BTC accumulated over the period of 5 years. If approved, the US govt. could add 550 BTC every day to its kitty for five years.
Following the Trump victory, inflows in the spot Bitcoin ETF have skyrocketed to $2 billion just in the past two days, reported CNF.
Can China Change Its Crypto Stand?
China has maintained a strict stance on cryptocurrency, banning crypto mining and trading nationwide. The country, which has had a cautious relationship with the sector since 2013, initially barred financial institutions from handling crypto transactions. In 2017, it further restricted the industry by banning initial coin offerings (ICOs).
Despite these prohibitions, China reportedly still controls around 55% of the global mining pool, while the U.S. holds 40%, indicating that crypto activities continue in China despite official bans. However, recent reports suggest that Chinese institutions are pushing for a review of the 2021 ban, prompting speculation that the government might reconsider its stance.
