- Donald Trump plans to establish a U.S. Bitcoin strategic reserve, mirroring the nation’s oil reserves.
- The BITCOIN Act proposes acquiring 1M Bitcoins over five years to address the U.S. $35T national debt.
- Russia extends its own Bitcoin reserve plans, adding global pressure and elevating Bitcoin’s geopolitical role.
Donald Trump, U.S. president-elect, has confirmed plans to set a U.S. Bitcoin strategic reserve, signaling a change in the nation’s approach to digital assets. This announcement comes as the BTC price surpasses $100,000 following Trump’s November election victory.
U.S. Bitcoin Reserve Plans Unveiled
Speaking on CNBC, Trump emphasized the need for the United States to lead in cryptocurrency adoption, referencing its growing use worldwide where he stated he will do something great with crypto, leading the U.S. ahead of other nations.
He further confirmed the U.S. would create a Bitcoin reserve akin to the nation’s strategic oil reserves. Trump’s remarks align with earlier campaign promises, including the creation of a strategic national Bitcoin reserve. At the Bitcoin 2024 conference, Trump predicted Bitcoin’s market value could rival gold’s $16 trillion capitalization.
Legislative Momentum Behind Bitcoin
The legislative space is also shifting to accommodate this vision. Republican Senator Cynthia Lummis has introduced the BITCOIN Act, a bill suggesting the addition of one million Bitcoins over five years.
This plan addresses the U.S.’s growing $35 trillion national debt. The proposal stresses Bitcoin’s prospect as an alternative store of value, positioning it as a hedge against traditional currency volatility.
International Developments Add Pressure
International dynamics are also fueling these developments. Russian lawmakers are promoting plans to establish a Bitcoin strategic reserve. This move follows President Vladimir Putin’s approval of Bitcoin as a viable alternative to foreign currency reserves, especially after Western sanctions impacted Russia’s financial assets. These geopolitical shifts underline the growing role of Bitcoin in global financial systems.
Market Reaction and Price Projections
Trump’s Bitcoin reserve announcement has triggered optimistic market forecasts. Perianne Boring, founder of the Digital Chamber of Commerce, remarked that Bitcoin’s fixed supply could drive exponential growth.
Analysts referencing the stock-to-flow model project Bitcoin’s value could exceed $800,000 by next year, pushing its market capitalization to $15 trillion. This surge reflects growing confidence in Bitcoin as a finite and resilient asset.
