President-Elect Proposes Bitcoin Reserve Act, Potential Shift in Crypto Market Dynamics

Bitcoin Reserve Act Could Challenge the Halving Cycle: Is a New Crypto Era Beginning?

By Simon Njenga

December 23, 2024

President-elect Donald Trump’s plan to create a Bitcoin reserve through an executive order is sparking intense discussion about its potential impact on cryptocurrency cycles. The proposed Bitcoin Reserve Act aims to position Bitcoin as a strategic asset by mandating the annual government purchase of 200,000 BTC for the next five years and maintaining the stash for at least twenty years. This move has the potential to fundamentally alter the perception of Bitcoin, leading to increased acceptance globally.

The proposal raises questions about its effect on Bitcoin’s four-year boom-bust pattern tied to the cryptocurrency’s halving events. Iliya Kalchev, a cryptocurrency analyst, emphasizes that this could signal the dawn of a new era for Bitcoin and change its narrative in the market. Some major financial institutions have already started incorporating Bitcoin into their portfolios, further bolstering its potential.

The plan also addresses the issue of seized Bitcoins, with over $20 billion worth of assets currently held by federal officials. By choosing to hold these assets rather than selling them, Trump’s administration may stabilize the market and enhance investors’ confidence in the cryptocurrency. Critics argue that establishing a strategic reserve requires careful planning and policy coherence.

The U.S. government’s possible shift towards holding onto its Bitcoin stash has significant implications for the industry.

Source: www.crypto-news-flash.com