Brazil considers establishing a Bitcoin reserve fund of $18.6 billion as a hedge against global risks

Brazil is considering the establishment of a Bitcoin reserve fund worth up to $18.6 billion as a measure to hedge against global risks. This shift comes amid a backdrop of Bitcoin's price stabilizing and approaching the $100,000 mark, but has not reached it recently due to investor caution. On November 22, Bitcoin was only about $300 away from the $100,000 threshold but then fell to $95,776, raising concerns that the upward trend might pause.

Financial experts evaluate that Bitcoin could help diversify investment portfolios, suggesting it is akin to "digital gold," with the potential to protect against market volatility. In addition to Brazil, several states in the U.S., such as Florida and Pennsylvania, are also considering incorporating Bitcoin into public investment portfolios. The proposal by President-elect Donald Trump to establish a national Bitcoin reserve has sparked strong interest from both the global cryptocurrency market and institutional investors.

However, the optimism surrounding Bitcoin also comes with many risks, including its value being highly volatile and uncertainties regarding future policies in the cryptocurrency sector.