The mood on the crypto market could hardly be better. The Bitcoin price is rising from all-time high to all-time high, and while until recently there was hope that the psychologically valuable mark of 100,000 US dollars could be reached, there is now talk of significantly higher price targets. Among other things, the USA is expected to help the price of the world's largest cryptocurrency rise even further, as there has long been talk of a strategic Bitcoin reserve for the USA. Now the plans are apparently slowly taking shape.
The Bitcoin Act is taking shape
Senator Cynthia Lummis brought forward the proposal for a strategic Bitcoin reserve for the USA and since then, of course, people have been hoping that this "Bitcoin Act" will take shape. Now things are slowly gaining momentum, as it was announced today how the USA could buy one million Bitcoin.
JUST IN: US Senator Cynthia Lummis outlines Strategic #Bitcoin Reserve plan: “purchase 200k BTC per year for five years. 1m BTC total.” 🇺🇸 pic.twitter.com/57ofJhc8X0
— Bitcoin Magazine (@BitcoinMagazine) November 21, 2024
According to this, the USA is to buy 200,000 Bitcoin each year over the next 5 years. The holding period is to be at least 20 years. Of course, the development of Bitcoin assets is to be published regularly, although this cannot be hidden anyway due to the transparency of the blockchain.
Among other things, revenues from the US Federal Reserve are to be used to finance the Bitcoin reserves. An investment that could quickly pay for itself, as numerous examples from the past have already shown, the best known of which is probably MicroStrategy.
significance for the Bitcoin price
For years, there have been predictions that the Bitcoin price could rise to $100,000. However, many have already seen the peak here, so it was probably assumed that a bear market would follow, similar to the rally in 2021. But now everything is different. Today we know that the $100,000 mark could just be the beginning.
On the one hand, more and more institutional investors are starting to buy Bitcoin , which is driving up the price, so that private investors are also experiencing FOMO (fear of missing out), which quickly leads to further price increases. On the other hand, big money is now coming into play as governments start to build up Bitcoin reserves.
This means that there is a good chance that the 100,000 US dollar mark was actually just the beginning and that a new bottom is being formed here rather than the peak being reached at this point. The most bullish Bitcoin forecasts , which assume price targets in the millions, could actually still come true in the long term, which many established altcoins and new cryptocurrencies should also benefit from.