The United States election was some of the defining occasions within the crypto house in 2024. Specifically, the reelection of Donald Trump revived Bitcoin and your complete crypto market after an uninspiring second and third quarter.
One of the guarantees made by President-elect Trump within the run-up to the polls was the establishment of a strategic Bitcoin reserve. Unsurprisingly, many of the latest crypto conversations has been across the BTC reserve and its potential impression on the US financial system and the crypto panorama.
Why Should The US Establish Strategic Bitcoin Reserves?
CryptoQuant CEO and founder Ki Young Ju is the newest to weigh in on the problem of strategic Bitcoin reserves within the United States. In a publish on the X platform, the crypto professional stated that utilizing the world’s largest cryptocurrency to offset the United States debt is a possible method.
The CryptoQuant CEO talked about:
Over the previous 15 years, $790 billion in realized capital inflows have propelled Bitcoin’s market cap to $2 trillion. This 12 months alone, $352 billion in inflows have added $1 trillion to its market cap.
Young Ju then disclosed that the United States may trim their home debt (70% of the overall) by 36% if the federal government acquires 1 million BTC by 2050 and designates the premier cryptocurrency as a strategic asset. “While the remaining 30% of debt held by foreign entities may resist this approach, the plan does not rely on settling all debt with Bitcoin, making the strategy practical,” the CryptoQuant founder added.
A chart displaying BTC's realized cap | Source: Ki_young_ju/X
Young Ju believes that utilizing a “pumpable asset” like BTC to compensate for dollar-denominated debt may face the problem of collectors’ acceptance. However, the US instituting a strategic Bitcoin reserve may function a “symbolic first step” towards bringing world, nationwide legitimacy to the flagship cryptocurrency — as seen with belongings like gold.
In the publish on X, the CryptoQuant CEO recognized outdated whales dumping their BTC to spite the US authorities as a threat that might include establishing a strategic Bitcoin reserve. “However, if governments continue accumulating Bitcoin until 2050 and its price keeps rising, I doubt they would actually dump it,” Young Ju concluded.
BTC Price At A Glance
As of this writing, the worth of BTC is hovering across the $97,000 mark, reflecting a 0.4% decline previously 24 hours. According to information from CoinGecko, the premier cryptocurrency is down by 3.6% within the final seven days.
The worth of BTC on the every day timeframe | Source: BTCUSDT chart on TradingView
Featured picture from iStock, chart from TradingView
