The US election was one of the crucial defining occasions within the crypto house in 2024. Particularly, the reelection of Donald Trump revived Bitcoin and the complete crypto market after an uninspiring second and third quarter.
One of many guarantees made by President-elect Trump within the run-up to the polls was the establishment of a strategic Bitcoin reserve. Unsurprisingly, a lot of the latest crypto conversations has been across the BTC reserve and its potential influence on the US financial system and the crypto panorama.
Why Ought to The US Set up Strategic Bitcoin Reserves?
CryptoQuant CEO and founder Ki Younger Ju is the newest to weigh in on the difficulty of strategic Bitcoin reserves in the US. In a publish on the X platform, the crypto skilled mentioned that utilizing the world’s largest cryptocurrency to offset the US debt is a possible strategy.
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 yr alone, $352 billion in inflows have added $1 trillion to its market cap.
Younger Ju then disclosed that the US might trim their home debt (70% of the whole) 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 exhibiting BTC's realized cap | Supply: Ki_young_ju/X
Younger Ju believes that utilizing a “pumpable asset” like BTC to compensate for dollar-denominated debt might face the problem of collectors’ acceptance. However, the US instituting a strategic Bitcoin reserve might function a “symbolic first step” towards bringing international, nationwide legitimacy to the flagship cryptocurrency — as seen with belongings like gold.
Within the publish on X, the CryptoQuant CEO recognized outdated whales dumping their BTC to spite the US authorities as a danger that might include establishing a strategic Bitcoin reserve.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,” Younger Ju concluded.
BTC Worth At A Look
As of this writing, the value of BTC is hovering across the $97,000 mark, reflecting a 0.4% decline prior to now 24 hours. In accordance with information from CoinGecko, the premier cryptocurrency is down by 3.6% within the final seven days.
The value of BTC on the day by day timeframe | Supply: BTCUSDT chart on TradingView
Featured picture from iStock, chart from TradingView
