Adam Back, CEO of blockchain technology company Blockstream, said in a number of interviews that a Strategic Bitcoin Reserve (SBR) under Trump administration might cause Bitcoin's value to skyrocket past $1 million. The US Strategic Bitcoin Reserve may cause bitcoin prices to soar into the seven figures. I am describing this cycle. That is not factored in at all, according to Back, since the market is suspicious about substantial follow through at the moment.
Get ready for bitcoin prices to reach seven figures this cycle if the US Strategic Bitcoin Reserve comes to fruition. Currently, the market is wary of significant follow-through, therefore it is not factored in at all.
Is the $1,000,000 price tag achievable for Bitcoin?
The market's doubts about the US government's ability to amass such a large Bitcoin reserve are brought to light in the discourse. Back responded to Van Straten's (and other experts') suggestion that a country may "front-run" this possible situation by saying, "There's no good way to buy 1 million BTC other than very, very quietly." A price teleport occurs even after the disclosure, when everyone has FOMO.
Portal, a Bitcoin protocol for custodyless interoperability, added to the conversation via X, saying, "If the US starts one, surely the rest of the world will start to follow suit as well." A US-initiated SBR might have far-reaching consequences for Bitcoin's acceptance and value, as this view shows.
According to Bitcoinist, on November 18, Dennis Porter, who is also the CEO and creator of the Satoshi Act Fund, a US NGO that promotes Bitcoin adoption, said that the Trump administration is contemplating an executive order to create a national SBR. This adds another dimension to the developing story. Through X, Porter said, "I've heard that the Trump team is considering an Executive Order for a National 'Strategic Bitcoin Reserve.'" The goal would be to prevent any state from enacting a similar legislation before the federal government. The US Senate offices are in support of this approach, as I can confirm. Take that, President Trump. The contest has begun.
The knowledge that Porter has comes from "private conversations with people familiar" with the topic and his direct engagement in supporting SBR wording both domestically and globally. Porter is heavily active in legislative activities related to Bitcoin adoption.
It is quite important to differentiate between the plans that are being considered. According to Porter, Trump is thinking on signing an executive order creating a nationwide SBR. At the Bitcoin 2024 conference, Trump had already proposed keeping any "seized coins" acquired by law enforcement in order to establish a strategic Bitcoin reserve.
In addition, Senator Cynthia Lummis (R-AZ) has filed the Bitcoin Act, which would authorize the US government to buy one million bitcoins (BTC) over five years, with 200,000 BTC distributed annually. Commenting on a snapshot of the Polymarket prediction market, Back addressed this legislative attempt by asking, "Will Trump create a national Bitcoin reserve?" with a 36% likelihood of success. Positive, in my opinion, and it depends on their meaning, he explained. Senator Lummis' SBR measure to purchase one million bitcoins is much different from "not selling seized coins."
If the latter happens, the price of Bitcoin might explode. When asked about the practical difficulties of making such a large purchase, Back said, "There's no good way to buy 1 million BTC other than very, very quietly." A price teleport occurs even after the disclosure, when everyone has FOMO.