Today, let’s talk about a hot topic: Will the U.S. really establish a Bitcoin reserve? Will this trigger the long-awaited cryptocurrency supercycle?
Recently, newly elected U.S. President Trump was rumored to possibly sign an executive order on his first day in office to include Bitcoin in the national reserves. Such news undoubtedly ignited enthusiasm for discussions in the global cryptocurrency market.
In fact, this is not without basis. 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 each year, and hold these assets as Treasury reserves for at least 20 years.
Not only in 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 are implemented in multiple countries, we will see a global Bitcoin reserve competition!
So, if the U.S. or other countries really include Bitcoin in their reserves, what impact will that have on the market?
First of all, the supercycle may really come. 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 may break the past four-year cycle market rules.
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 United States takes the lead in accumulating Bitcoin, other countries will feel competitive pressure and have to follow suit quickly. Such FOMO sentiment could lead to a surge in Bitcoin demand.
However, we cannot ignore the reality. If Trump chooses to promote the plan through an executive order, such policy stability is lacking, as the next president can easily overturn it. Moreover, passing legislation requires majority support from the Senate and Congress, which is no easy task.
Even so, the market has already begun to position itself for this possibility. Nexo analyst Iliya Kalchev believes that if the (Bitcoin Reserve Act) is passed, it will become an important 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 gold price soared after Nixon abandoned the gold standard in 1971, if Bitcoin becomes a global reserve asset, its future price will be hard to estimate. Furthermore, President Trump appointing officials who support cryptocurrency to the core economic team also makes this speculation seem reasonable.
So the question arises: Will the supercycle really arrive as scheduled?
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 alternative asset sparked market frenzy.
In 2017, the expectation of mainstream financial adoption led to rapid price appreciation.
In 2020, a large number of tech companies purchasing Bitcoin triggered another frenzy.
But every 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 rallies, if a currency hoarding competition really breaks out between countries, Bitcoin's supply scarcity may leave ordinary investors in the dust.
Finally, we must remind all investors: while the supercycle seems tempting, it is ultimately a theory. Do not ignore potential risks because of fantasies; 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 just around the corner! Are you ready?
Follow me, and together we will unveil the future of the cryptocurrency market!
