How Might Trump’s US Bitcoin Reserve Influence BTC Price to Hit $1M?
Recently, the Bitcoin market reached the $100,000 milestone. The achievement has reignited discussions about Bitcoin’s future potential. As the crypto world waits for Donald Trump to be sworn in as president on January 25, 2025, the United States will launch a Bitcoin reserve, a move predicted by a crypto enthusiast named Atlas on X There may be a push towards the development of Bitcoin reserves. The price of Bitcoin is as high as $1 million. Yes! You heard that right. One million per Bitcoin! Is it possible? Let’s hear what Atlas has to say. Ready?
Trump’s Bitcoin Reserve Plan
Cryptocurrency has become a key topic during US political campaigns. Both Donald Trump and Kamala Harris have proposed many revolutionary proposals for the industry. Trump’s proposal for a U.S. Bitcoin reserve has been widely welcomed as it is primarily intended as a strategy to protect the U.S. economy from the threat of inflation.
Atlas said that the U.S. government under Trump will purchase at least 20% of the total Bitcoin supply.
Bitcoin Reserve: Benefits and Criticisms
The Bitcoin reserve plan has drawn heavy criticism since it was first proposed. Almost all arguments against the proposal hinge on the fact that Bitcoin is highly volatile by nature. Most critics argue that using volatile assets as reserves is unwise and would push the U.S. economy toward disaster.
Supporters see long-term benefits
Supporters of the proposal highlight the fact that Bitcoin has the ability to hedge economic risks. Bitcoin has grown by 152.7% over the past year, reinforcing its value as a strategic asset for financial stability.
Global Context: Why Bitcoin Matters
There is no doubt that Russia sees its embrace of Bitcoin as a strategy to overcome the sanctions imposed on the country by Western countries in response to aggressive military actions in Ukraine. Atlas noted that Western countries have used economic sanctions to freeze at least $300 billion in Russian assets.
Bitcoin as a strategic asset
Of course, countries that are dissatisfied with the way the United States uses the dollar to dominate the global economy, such as China, will embrace any smart strategy that can help them reduce their dependence on the dollar.
Atlas believes that countries such as Russia and China are eager to adopt strategies to help them wean themselves off their dependence on the U.S. dollar.
Bitcoin Price and Adoption Potential
Currently, the United States has no choice but to embrace Bitcoin. Seizing the first-mover advantage is very important to establish a country’s dominant position in the Bitcoin market. This suggests that the United States is likely to receive 20% of the BTC supply.
Atlas predicts that if the United States adopts Bitcoin, its price could reach as high as $1 million.
This is pure economics. Reduced supply and increased demand are ideal conditions for rising prices.
All in all, the U.S. Bitcoin reserve could revolutionize the global financial system. With increasing demand, decreasing supply, and global competition, Bitcoin’s future looks promising. Yes, the “$1 million per BTC” goal looks reasonable!
