In a sequence of exchanges on X, Adam Back, CEO of blockchain know-how agency Blockstream, projected that Bitcoin may surge past $1 million if the United States have been to determine a Strategic Bitcoin Reserve (SBR) underneath President-elect Donald Trump. “If the US Strategic Bitcoin Reserve happens, prepare for 7 figure bitcoin. This cycle. The market is skeptical on meaningful follow through for now, so that is not at all priced in,” Back acknowledged.
if the US Strategic Bitcoin Reserve occurs put together for 7 determine bitcoin. this cycle. the market is skeptical on significant observe via for now, so that isn’t in any respect priced in.
— Adam Back (@adam3us) November 18, 2024
The daring prediction sparked discussions amongst trade consultants and lovers. James Van Straten, a famous crypto analyst, responded, “7 figures? I don’t think I’m mentally prepared for 6.” Acknowledging the market’s doubt, Back replied, “That’s a fairly big ‘if’ though. At least if we infer from market price, the market thinks a US Strategic Bitcoin Reserve is unlikely. If that becomes real, I’d expect a rapid repricing.”
Can Bitcoin Rise To $1 Million Per Coin?
The dialog highlights the market’s skepticism relating to the feasibility of the US authorities accumulating such a big Bitcoin reserve. Van Straten, like different consultants, urged {that a} nation would possibly take into account “front-running” this potential state of affairs, to which Back famous, “There’s no good way to buy 1 million BTC other than very, very quietly. Even then, once it leaks, the entire world gets FOMO and a price teleport happens.”
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Portal, a custodyless interoperability protocol for Bitcoin, weighed in on the dialogue by way of X: “If the US starts one, surely the rest of the world will start to follow suit as well.” This sentiment underscores the potential international ripple impact of a US-initiated SBR on Bitcoin adoption and valuation.
Skepticism was additionally voiced by X person AndyLiteMan (@LiteAndy), who critiqued Back’s astronomical prediction: “As much as that would be exciting, it’s not going to happen. We hear this every cycle.” Back maintained his place, emphasizing the conditional nature of his prediction: “I said ‘if,’ and that market doesn’t believe it so far.”
Adding one other layer to the unfolding narrative, Dennis Porter, CEO and founding father of the Satoshi Act Fund—a US nonprofit advocating for Bitcoin adoption—claimed on November 18 that Donald Trump’s staff is contemplating an government order to determine a nationwide SBR, as Bitcoinist reported. “I’ve heard that the Trump team is considering an Executive Order for a National ‘Strategic Bitcoin Reserve’ in order to beat any state from passing it into law first,” Porter disclosed by way of X. “I can confirm that US Senate offices are backing this plan up. Game on President Trump. The race is on.”
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Porter, deeply concerned in legislative efforts surrounding Bitcoin adoption, famous that his info stems from “private conversations with people familiar” with the matter and his direct involvement in selling SBR language throughout the United States and internationally.
Notably, it’s essential to tell apart between the proposals being mentioned. Porter’s reference to Trump’s consideration pertains to an government order that might set up a nationwide SBR. This contrasts with Trump’s earlier suggestion on the Bitcoin 2024 convention to create a strategic Bitcoin reserve by retaining all “seized coins” obtained via regulation enforcement actions.
Furthermore, Republican Senator Cynthia Lummis has introduced the Bitcoin Act, which proposes the US authorities buy 1 million BTC over 5 years, allocating 200,000 BTC per yr. Addressing this legislative initiative, Back commented on a Polymarket prediction market screenshot exhibiting a 36% likelihood for “Will Trump create a national Bitcoin reserve?” He clarified, “Optimistic IMO and depends on what they mean. ‘Not selling seized coins’ is very different from Senator Lummis’ SBR bill to buy 1 million BTC.”
The latter may ship the Bitcoin value skyrocketing. Back highlighted the logistical challenges of such a considerable acquisition: “There’s no good way to buy 1 million BTC other than very, very quietly. Even then, once it leaks, the entire world gets FOMO and a price teleport happens.”
At press time, BTC traded at $92,329.
Featured picture created with DALL.E, chart from TradingView.com
