Bitcoin Reserve Act Could End Cryptocurrency’s 4-Year Boom-Bump Cycle
The Bitcoin Reserve Law Could Break the Halving Cycle. Will this four-year cycle play out differently? Shall we enter the mythical Supercycle?
Analysis
With speculation growing that President-elect Donald Trump may sign an executive order declaring a Bitcoin Reserve on day one or pass legislation to establish a Reserve during his term, many are wondering whether such a move could lead to a crypto supercycle.
Since Wyoming Senator Cynthia Lummis introduced the Bitcoin Reserve Act earlier this year, states including Texas and Pennsylvania have put forward similar proposals. Russia, Thailand and Germany are reportedly considering their own proposals, further ratcheting up the pressure.
If governments are racing to secure their own Bitcoin supplies, would we say goodbye to the four-year boom-and-bust cycle in cryptocurrency prices that many attribute to the Bitcoin halving?
Iliya Kalchev, a dispatch analyst at crypto lender Nexo, believes that “the Bitcoin Reserve Act could be a historic moment for Bitcoin, signaling its ‘recognition as a legitimate global financial instrument.’”
"Every Bitcoin cycle has a narrative trying to convince that ‘this one is different.’ Conditions have never been more ideal. Crypto has never had a pro-crypto US President who controls the Senate and Congress."
Lummis's proposal for the Bitcoin Act of 2024 would allow the U.S. government to place $580,985 of Bitcoin in its treasury as a reserve asset, purchasing 200,000 BTC annually for five years, accumulating 1 million Bitcoin that would be held for at least 20 years.
Jack Mallers, founder and CEO of Strike, believes Trump has the “potential to use an executive order on day one to buy Bitcoin,” though he cautioned that this would not amount to a purchase of 1 million Bitcoin.
Dennis Porter, co-founder of the nonprofit Satoshi Act Fund, which supports pro-Bitcoin legislation in the US, also believes that Trump is exploring the possibility of creating a strategic Bitcoin reserve through an executive order.#TopCoinsSeptember $
