Today, let's talk about a hot topic: Will the U.S. really establish a Bitcoin reserve? Could this trigger the long-awaited cryptocurrency supercycle?
Recently, it has been rumored that the new U.S. President Trump may sign an executive order on his first day in office to include Bitcoin in the national reserves. Such news has undoubtedly ignited enthusiasm for discussions in the global cryptocurrency market.
In fact, this is not unfounded. Earlier this year, Wyoming Senator Cynthia Lummis proposed the (Bitcoin Reserve Act). The goal of this act is for the U.S. government to purchase and reserve 1 million Bitcoins over five years, at a rate of 200,000 per year, and to hold these assets as national reserves for at least 20 years.
Not only Wyoming, but similar proposals are also emerging in Texas, Pennsylvania, and other places. Additionally, countries like Russia, Germany, and Thailand are reportedly researching similar plans. If these proposals materialize in multiple countries, we will witness a global race for Bitcoin reserves!
So, if the U.S. or other countries truly include Bitcoin in their reserves, what impact will this have on the market?
First of all, the supercycle may indeed arrive. This is because Bitcoin will officially leap from a private investment tool to an important asset in the global financial market. The surge in demand could break the market rules that have persisted for the past four years.
Secondly, Bitcoin's volatility may decrease. If more institutions and countries become major buyers, their long-term holding strategies will stabilize prices. The market will no longer be dominated by retail investor sentiment, but will be more influenced by macroeconomic and geopolitical factors.
Finally, the global market landscape may be reshaped. If the U.S. takes the lead in hoarding Bitcoin, other countries will feel competitive pressure and must follow suit quickly. Such FOMO sentiment could lead to a surge in Bitcoin demand.
However, we cannot ignore the reality of the situation. If Trump chooses to push the plan through an executive order, such a policy may lack stability, as the next president can easily overturn it. Moreover, passing legislation requires majority support from the Senate and Congress, which is a significant challenge.
Even so, the market has already begun to prepare for this possibility. Nexo analyst Iliya Kalchev believes that if the (Bitcoin Reserve Act) is passed, it will become a significant milestone in Bitcoin's history. It will not only enhance Bitcoin's legitimacy but may also trigger a wave of global adoption.
Just like the surge in gold prices after Nixon abandoned the gold standard in 1971, if Bitcoin becomes a global reserve asset, its future price will be hard to estimate. Moreover, the appointment of officials supporting cryptocurrency to the core economic team by U.S. President Trump further makes this speculation seem reasonable.
So the question arises, will the supercycle truly arrive as expected?
History tells us that the narrative of the supercycle has appeared in multiple bull markets:
In 2013, the dream of Bitcoin as a fiat currency substitute asset sparked market frenzy.
In 2017, the expectation of mainstream financial adoption led to rapid price appreciation.
In 2020, the massive purchase of Bitcoin by technology companies triggered another wave of excitement.
But each time, the market eventually falls into a long-term bear market. So, will this time really be different?
Insiders warn that the supercycle theory is a double-edged sword. While it can bring exciting surges, if a race to hoard coins between countries truly erupts, Bitcoin's supply scarcity may leave ordinary investors in the dust.
Finally, we want to remind all investors: while the supercycle may seem enticing, it is ultimately just a theory. Do not ignore potential risks due to fantasy; rational investment is the hard truth.
No matter what the future holds, Bitcoin is moving towards the center of global finance. The next era of cryptocurrency may be right around the corner! Are you ready?
Follow me, and let's unveil the future of the cryptocurrency market together!