Bitcoin Could See a Pump and Pullback if U.S. Strategic Reserve Plan Proceeds
- The U.S. may acquire 1 million Bitcoin, marking 5% of its total supply, to hold for 20 years.
- Countries like El Salvador and Bhutan are already integrating Bitcoin into their economic strategies.
- Approval of the U.S. plan could drive massive institutional interest and inspire other nations to follow suit.
The U.S. government is considering a groundbreaking move in the crypto space. Senator Cynthia Lummis has proposed that the United States acquire 1 million Bitcoins.
That is roughly 5% of its total supply and it could be held as a strategic reserve for 20 years. If approved, this plan could solidify Bitcoins standing as a global financial asset but may also cause short term market volatility.
Bitcoin will surge if Proposal approved
Ben Simpson, CEO of Collective Shift, predicts that Bitcoins price will surge if the proposal is approved, only to experience a pullback later. I expect it to be pretty volatile, Simpson commented, a price pump followed by a correction.
This proposal aligns with growing Bitcoin adoption worldwide. Countries like El Salvador and Bhutan have already integrated it into their economies. El Salvador made Bitcoin a legal tender in 2021, while Bhutan has leveraged its renewable energy resources to mine Bitcoin.
These examples show how nations are beginning to view BTC as more than just an investment, treating it as a vital part of economic strategy.
At the same time, Bitcoin dominance currently at 56.63%, according to TradingView which has been declining, signaling a potential shift toward altcoins.
However, analysts believe Bitcoin will remain a key asset for institutions and governments even if its price dips, strong demand at the $100,000 level will likely provide support.
During this cycle, investment firm VanEck has reaffirmed its $180,000 price target for Bitcoin. That is reflecting confidence in its long-term potential.
If the U.S. reserve plan gains traction, it could encourage other nations to follow suit, potentially a massive bull market.
With demand growing and more countries adopting Bitcoin, its role as a store of value and a global financial asset continues to strengthen.
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Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
