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A Bitcoin Reserve Act may end crypto’s 4-year boom-bust cyclecointelegraph.com/news/bitcoin-reserve-act-end-crypto-4-year-cycle-supercycle
30 sats \ 1 comment \ @bren 19 Dec 2024 bitcoin
With speculation mounting that incoming President 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 wonder if the move could lead to a crypto supercycle.
Since Wyoming Senator Cynthia Lummis introduced the Bitcoin Reserve Act earlier this year, states like Texas and Pennsylvania have filed similar proposals. Russia, Thailand and Germany are reportedly considering proposals of their own, further ramping up pressure.
If governments are competing to secure their own stockpiles of Bitcoin, would we say goodbye to the four year boom-bust cycle in crypto prices that many attribute to Bitcoin’s halving?
Iliya Kalchev, dispatch analyst from crypto lender Nexo, believes “the Bitcoin Reserve Act could be a landmark moment for Bitcoin signaling its “recognition as a legitimate global financial instrument.”
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0 sats \ 0 replies \ @Eivydas 19 Dec 2024
I definitely think the likelihood of the incoming demand from nations all over the world in 2025 is not priced in Bitcoin. Especially if United States set an example and also legitimise this as a strategy.
Let's not forget that historically United States have been pressuring countries to stay on the dollar, so they could export their inflation. United States have the most at stake here, but also they have the best shot to acquire the biggest share of BTC supply, both from the sell-side liquidity acceptance perspective (USD), as well as from how much they can allocate to this. So, they need to play it clever, and front-running other nations in size is definitely more rational for long-term than trying to cling on the status quo, and wait for other countries to slowly detach themselves from the debasing dollar.
Overall, the train has already departed and while the public is not getting that many definitive announcements, I think a lot of countries are seriously weighing up their strategies silently. We can't really fathom the power of shockwaves this will bring - it's unprecedented. Perhaps we have some 30 days before this is unleashed, and it will look so obvious in retrospect.
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