Bitcoin rate soars: US authorities will buy up to 5% of BTC for state reserves

The Trump administration is going to create a more "crypto-friendly" environment. One of the high-profile steps is the possible adoption of the so-called Bitcoin Act. If it is approved, Bitcoin will become an OFFICIAL RESERVE ACCOUNT, and the United States will purchase up to 5% of the total BTC volume. Such a movediscusses James Butterfill, Head of Research at CoinShares, fueled interest in the topic.

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What indicates a 100% increase in the Bitcoin rate

Trump, having become the US president for the second time, promises to establish a Bitcoin reserve for the country. About this he saidannounced at the Bitcoin 2024 conference in Nashville. And on November 5, following the election, he was back at the helm, and BTC jumped to a new record of $75,000. It is clear that if the law is passed, Bitcoin will be on the same shelf as gold in the reserve.

The crypto industry has said that BTC is "digital gold" before. Even Larry Fink of BlackRock, whoconfirmsasset is a "thing" in both the old and new financial leagues. With the recognition of Bitcoin as a national reserve, its status in the financial sector will definitely increase.

1. Institutions have taken a stronger grip on crypto. Since January, when the SEC gave the green light to spot ETFs, capital has been pouring into them. Currently, there are $24.1 billion in Bitcoin funds, and in the new ones launched in January, it is up to $44.5 billion. They hold BTC worth $76.49 billion, which is 5.08% of the total BTC capitalization.

2. Wyoming Senator Cynthia Lummis also decided to contribute to the Bitcoin epic. This year, she introduced a bill with the telling title "BITCOIN", which proposes to create a strategic reserve. The plan is simple: to buy 1 million BTC in five years and, as she hopes, thus reduce the national debt. After Trump's victory, Lummissaid.: "It's time to create a strategic Bitcoin reserve!".

3. The adoption of the law could draw the attention of governments and institutions to Bitcoin, giving it a good chance to grow.

At the conference, Trump criticized the SEC and its chairman, Gary Gensler, for their tough crypto policy. He said that if he wins, Gensler will be shown the door. If someone like the "cryptomancer" Hester Pierce is appointed as chairman, it will ease the regulator's pressure and attract institutional investors to the industry. Let's see what happens...

The crypto community has long complained that the SEC's strict approach is pushing startups abroad and putting the United States at the tail end of the blockchain race. The Commission is confident that current financial laws are sufficient, and they are ready to continue to file lawsuits to restore order.

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