On Friday, January 3, the price of Bitcoin rebounded and approached $97,000, looking like it would make another attempt to hit the $100,000 mark as it welcomes the new year 2025.
The Satoshi Action Fund revealed a rumor that a U.S. state may start buying Bitcoin in the next four months, which may lay an important foundation for the so-called "Trump deal."
In addition, since the EU implemented the MiCA Act on December 30, 2024, the market value of the US dollar stablecoin USDT has decreased by US$1.8 billion. This is the largest single-week fluctuation since the bankruptcy of the FTX exchange.
US state to start buying Bitcoin within 4 months
Dennis Porter, co-founder and CEO of the Satoshi Action Fund, tweeted that a U.S. state is almost certain to start buying Bitcoin in the next four months. He emphasized that this is not a random prediction, but a real progress that their team is actively promoting legislation to pass.
Porter specifically mentioned Texas in response to a question about the future of state-level Bitcoin acquisitions, saying that while Texas law doesn’t actually allow the state to buy Bitcoin, only accepting donations and paying taxes, it’s still a good prediction that Texas could be one of the first states to include Bitcoin on its balance sheet.
Porter also explained the mission of the Satoshi Action Fund, a nonprofit organization dedicated to promoting the benefits of Bitcoin by educating lawmakers and regulators to not only drive Bitcoin adoption but also develop model policies that can be turned into law.
So far, the fund has assisted in proposing 30 bills in 20 states, covering about half of the states. Porter emphasized that their work is not limited to legislation, but also working closely with legislators to ensure that these bills can be passed smoothly.
Speaking of the protection of Bitcoin rights, Porter mentioned that in four states, Oklahoma, Louisiana, Arkansas, and Montana, Bitcoin rights, self-custody rights, mining rights, and the right to run nodes are already protected. Looking ahead to 2025, he is optimistic about further legislative progress, believing that at least 10 states, and possibly as many as 12 states, will introduce strategic Bitcoin reserve legislation.
Porter said of the upcoming legislation that it could happen very quickly, and they already have one state that is almost 100% certain that legislation will be passed into law. Although he did not reveal which state it was, he emphasized the certainty of the acquisition and mentioned that the state has a working group that meets during the offseason to discuss bills, and that every bill they have passed in the past few years has become law.
Porter revealed that the Strategic Bitcoin Reserve Act had just passed the working group, and he believed that the possibility of the bill passing into law was close to 100%, and that the state would be able to start buying Bitcoin. President-elect Trump will be sworn in on January 20, and there are reports that he may sign an executive order on his first day in office to establish a strategic Bitcoin reserve for the United States. It seems that the Satoshi Action Fund is already taking action for legislation to make this possible.
Analyst: The dollar will continue to strengthen in the first half of 2025
Lee Hardman, a foreign exchange analyst at Mitsubishi UFJ Financial Group, mentioned that considering that Trump may quickly implement tariff policies after taking office, coupled with the low possibility of the Federal Reserve cutting interest rates, the US dollar is expected to continue to strengthen in the first half of 2025.
The dollar has maintained its upward momentum at the beginning of the new year, and the market generally expects Trump to introduce some policies that are conducive to economic growth in the early stages of his term.
Kit Juckes, chief foreign exchange strategist at Societe Generale, while cautious about the continued strength of the dollar, also mentioned that the dollar could come under pressure if U.S. economic data unexpectedly shows that the Federal Reserve cuts interest rates more than once in the first half of this year and by more than 50 basis points for the full year.
However, Juckes believes that the possibility of this happening is not small, but the possibility of cracks in US economic growth at the beginning of the year seems low. Therefore, he prefers not to rush to be short the US dollar for the time being, but to make a decision when the situation becomes clearer.
