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Trump To Make Bitcoin US Reserve Asset Immediately as the US elected President has announced plans to designate Bitcoin as a United States reserve asset upon taking office. This unprecedented initiative is poised to significantly impact Bitcoin‘s valuation and the broader cryptocurrency market.
Trump’s Strategic Bitcoin Reserve Plan
According to Jack Mallers, CEO and founder of Strike, Trump intends to issue an executive order on his first day in office, establishing Bitcoin as a U.S. reserve asset. This move aligns with the BITCOIN Act of 2024, introduced by Senator Cynthia Lummis, which proposes that the U.S. Treasury acquire 1 million BTC over five years, positioning Bitcoin as a strategic asset to hedge against inflation and strengthen the nation’s financial leadership globally.
Potential Impact on Bitcoin’s Price
The announcement has fueled speculation about Bitcoin’s future valuation. Adam Back, CEO of Blockstream, suggests that the establishment of a U.S. Strategic Bitcoin Reserve could propel Bitcoin’s price beyond $1 million during this market cycle. Similarly, Galaxy Digital CEO Mike Novogratz forecasts that Bitcoin could skyrocket by over 400% from its current level if the U.S. adopts it as a strategic reserve asset, potentially reaching $500,000.
Market Reactions and Speculations
Following Trump’s incoming announcement, Bitcoin’s price surged past $105,000, reflecting increased investor confidence in the cryptocurrency’s mainstream adoption. Analysts predict that Bitcoin could reach $150,000 in the near term, with some forecasts suggesting it may hit $1 million by 2025, driven by increased adoption and regulatory support under the new U.S. administration.
Broader Implications for the Cryptocurrency Market
Trump’s proposal to create a strategic Bitcoin reserve signifies a monumental shift in the U.S. government’s approach to digital assets. By treating Bitcoin similarly to gold, the administration aims to bolster the U.S. dollar’s position as the world reserve currency and utilize Bitcoin’s appreciating value to reduce national debt. This move is expected to encourage institutional investors, including pension funds and sovereign wealth funds, to enter the cryptocurrency space, further legitimizing and stabilizing the market.
Conclusion: Trump To Make Bitcoin US Reserve Asset Immediately
President-elect Trump’s plan to designate Bitcoin as a U.S. reserve asset represents a historic convergence of cryptocurrency and traditional finance. As the administration prepares to implement this strategy, we may witness unprecedented transformations, with Bitcoin at the forefront of this evolution.
