Donald Trump has solidified his support for bitcoin and cryptocurrencies in 2024, coinciding with reports suggesting Russia might be initiating a “bitcoin cold war.”
The price of bitcoin has surged past $100,000 per coin, fueled by Trump’s re-election in November. Meanwhile, a top executive from a leading Wall Street firm has acknowledged that the current bitcoin rally is being driven by “FOMO” (fear of missing out).
Amid warnings from prominent billionaires about an impending “debt crisis” that could threaten the stability of the U.S. dollar, Trump has officially confirmed plans to establish a U.S. Bitcoin Strategic Reserve.
“We’re going to do something incredible with crypto because we don’t want to fall behind China or any other nation. They’re adopting it, and we need to stay ahead,” Trump told CNBC in a recent interview.
Bitcoin’s Fixed Supply Fuels Optimism
Experts are weighing in on the potential implications of Trump’s proposal. Perianne Boring, founder of The Digital Chamber—a prominent cryptocurrency trade organization—told Fox Business this week that Trump’s initiatives could dramatically increase bitcoin’s value.
“If Trump successfully implements these proposals, the sky is truly the limit. Bitcoin’s fixed supply gives it unique potential,” Boring explained. She also cited the stock-to-flow model, which predicts bitcoin’s price could exceed $800,000 by the end of next year, propelling its market cap from $2 trillion to an estimated $15 trillion.
When asked if the U.S. might create a bitcoin reserve similar to its strategic petroleum reserve, Trump’s response was unequivocal: “Yes, I think so.”
Strategic Bitcoin Reserve to Rival Gold?
Earlier this year, then-presidential candidate Trump pledged to establish a “Strategic National Bitcoin Reserve” if elected. Speaking at the Bitcoin 2024 conference in July, he predicted bitcoin’s market value could surpass gold’s $16 trillion market cap.
Adding to the momentum, Republican Senator Cynthia Lummis recently introduced the BITCOIN Act (Boosting Innovation, Technology, and Competitiveness Through Optimized Investment Nationwide) in Congress. The proposed legislation advocates for the U.S. to acquire 1 million bitcoins over the next five years as a measure to address the ballooning $35 trillion national debt.
Russia’s Bitcoin Push Adds Geopolitical Pressure
On the global stage, Russia’s lawmakers have been pushing for the creation of a national bitcoin reserve. This move follows President Vladimir Putin’s endorsement of bitcoin as a viable alternative to foreign currency reserves, particularly after Western governments froze Russian assets in response to its actions in Ukraine.
Bitcoin Traders Predict Explosive Growth
The prospect of a U.S. Bitcoin Strategic Reserve has spurred bold predictions from investors and traders, with the news further bolstered by unexpected support from Elon Musk. As nations race to embrace bitcoin, the potential for transformative economic shifts continues to grow.
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