The post How Might Trump’s US Bitcoin Reserve Influence BTC Price to Hit $1M? appeared first on Coinpedia Fintech News
Recently, the Bitcoin market achieved a milestone of $100K. The achievement has reignited discussions related to the future potential of Bitcoin. As the cryptocurrency world awaits the launch of a Bitcoin Reserve in the United States under Donald Trump, who is set to take oath as the president on January 25, 2025, a crypto enthusiast, identified as Atlas on X, predicts that the move could push the price of Bitcoin to as high as $1M. Yes! You have heard it right. One Million Per A Bitcoin! Is it possible? Let’s listen to what Atlas has to say. Ready?
Trump’s Bitcoin Reserve Plan
Cryptocurrency emerged as a key topic during the US political campaign. Both Donald Trump and Kamala Harris presented many revolutionary proposals for the industry. Trump’s proposal for a US Bitcoin reserve gained immense popularity, as it presented primarily as a strategy to shield the US economy from the threat of inflation.
Atlas states that the Tump-led US government would buy at least 20% of the total supply of Bitcoin.
Bitcoin Reserve: Benefits and Criticism
From its initial presentation, the BTC reserve plan attracted severe criticism. Almost all the arguments against the proposal hinge on the fact that Bitcoin is highly volatile in nature. Most critics believe that it is unwise to use a highly volatile asset as a reserve and it will push the US economy to a disaster.
Supporters See Long-Term Benefits
Those advocating for the proposal highlight the fact that Bitcoin has the capacity to act as a hedge against economic risks. In the last one year, Bitcoin has seen a growth of 152.7%, reinforcing its value as a strategic asset for financial stability.
Global Context: Why Bitcoin is Crucial
Undisputedly, Russia sees embracing Bitcoin as a strategy to overcome the sanctions imposed against the country by the western power in response to its aggressive military action against Ukraine. Atlas notes that at least $300 billion of Russian assets were freezed by the western power using the economic sanction.
Bitcoin as a Strategic Asset
Definitely, countries, unhappily with the way the US dominates the global economy using the US dollar, like China, will accept any sensible strategy that can help them reduce their reliance on the US dollar.
Atlas opines that nations like Russia and China are eager to embrace strategies to help them rescue their reliance on the US dollar.
Bitcoin’s Price and Adoption Potential
Right now, the US has no choice but to embrace Bitcoin. It is important to grab the early-mover advantage to establish the country’s dominance in the Bitcoin market. This indicates that it is highly likely for the US to acquire 20% of the BTC supply.
Atlas forecasts that if the US adopts Bitcoin, it could push the price to as high as $1,000,000.
It’s pure economics. Reducing supply and increasing demand are the ideal conditions for price growth.
In conclusion, the US Bitcoin Reserve could revolutionise the global financial system. With rising demand, reduced supply, and global competition, BTC’s future looks promising. Yes, the target of ‘$1M per BTC’ looks sensible!
