The Bitcoin Reserve Act, proposed by U.S. Senator Cynthia Lummis, could signal a seismic shift in global Bitcoin adoption. The bill would allow the U.S. government to buy 200,000 BTC annually over five years, stockpiling up to 1 million BTC. According to Iliya Kalchev, an analyst at crypto lender Nexo, the Bitcoin Reserve Act could mark “a landmark moment for Bitcoin,” positioning it as a legitimate global financial instrument. The proposed move comes as other countries, including Russia and Germany, consider their own Bitcoin reserves, with U.S. actions likely to set off a global race to acquire Bitcoin.
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Bitcoin Acquisition Could Trigger Price Surge
The potential for global competition in securing Bitcoin could lead to unprecedented demand. According to Cointelegraph, Basel Ismail, CEO of Blockcircle, believes this “race to acquire Bitcoin” could significantly drive up prices. Ismail notes that countries may be forced to act quickly, or risk falling behind, creating a “FOMO” (fear of missing out) effect.
Could This End Bitcoin’s Four-Year Cycle?
Some experts, including economist Alex Krüger, argue that the Bitcoin Reserve Act could launch Bitcoin into a “supercycle,” similar to gold’s rise in the 1970s. However, Krüger warns that comparing this cycle to past ones might be misleading. While the U.S. has become increasingly pro-Bitcoin, Krüger suggests that external factors could still influence Bitcoin’s market, as noted by Cointelegraph.
At the time of writing, Bitcoin is sitting at $97,354.84.
