- December 16, 2024
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
The post Bitcoin Hits $106K: How Trump’s Strategic Reserve Proposal is Shaking the Crypto Market appeared first on Coinpedia Fintech News
Bitcoin’s rise to $106,533 reflects a strong market momentum as President-elect Donald Trump hinted at a groundbreaking plan to establish a U.S. Bitcoin strategic reserve during his interview with CNBC. With a recent price of $105,688, the cryptocurrency has increased by more than 50% since the election on November 5. Plus, ether increased by about 3% to $4,014. On Chain data revealed that nearly 27,000 Bitcoins, worth $2.8 billion, were withdrawn from major exchanges over the weekend, potentially driving prices higher due to reduced supply.
This is an electrifying effect of Trump’s ultimate vision is to ensure America’s dominance in crypto before anyone else takes over, particularly against competitors like China, has fueled confidence among investors. Moreover, his selection of crypto-friendly figures, including David Sacks as the White House AI and crypto czar and Paul Atkins to head the SEC, signals a policy shift towards mainstream adoption.
This move is a green flag for global powers, including Russia, to explore Bitcoin’s potential to counter geopolitical challenges, signaling a possible “Bitcoin cold war.” President Vladimir Putin explores alternatives to the U.S. dollar. Putin recently emphasized Bitcoin’s resilience against restrictions, highlighting its appeal as a hedge against traditional currencies.
The Bitcoin reserve plan gained traction as companies like MicroStrategy and Tesla adopted Bitcoin as a hedge against economic risks. MicroStrategy now holds 423,650 BTC, worth $43.6 billion, showcasing Bitcoin’s potential as a modern reserve asset.
Trump’s proposal for a Bitcoin reserve echoes his earlier promise at the Bitcoin 2024 Conference, where he predicted Bitcoin’s market cap could rival gold’s $16 trillion. Supporting this vision, Republican Senator Cynthia Lummis introduced the BITCOIN Act, advocating for the U.S. to acquire 1 million Bitcoins over five years to address the $35 trillion national debt.
Critics Have Mixed Views on Trump’s Bitcoin Plan
Trump needs Congress to approve funding, clear SEC and Treasury guidelines, and Fed cooperation to succeed. In the meanwhile, Strike CEO Jack Mallers believes Donald Trump could issue an executive order on day one to make Bitcoin a U.S. reserve asset. While it wouldn’t involve buying 1 million BTC, Mallers calls it a “significant position” that could reshape Bitcoin’s role in the U.S. economy.
Others argue that making Bitcoin part of national reserves could go against its decentralized nature. While price fluctuation are also expected with the plan.
Bitcoin Current Scenario
Market experts predict Trump’s plans could dramatically impact Bitcoin’s value. Perianne Boring, founder of the Digital Chamber, estimates Bitcoin could reach $800,000 by next year, creating a $15 trillion market cap. She highlighted Bitcoin’s fixed supply as a key driver: “The sky is the limit if Trump’s proposals take shape.”
Notably, there are speculations 0.25% interest rate cut from the U.S. Federal Reserve on December 18 could further boost Bitcoin’s momentum, according to analysts.
