The United States election was one of the vital defining occasions within the crypto area in 2024. Specifically, the reelection of Donald Trump revived Bitcoin and the whole crypto market after an uninspiring second and third quarter.
One of the guarantees made by President-elect Trump within the run-up to the polls was the establishment of a strategic Bitcoin reserve. Unsurprisingly, many of the latest crypto conversations has been across the BTC reserve and its potential impression on the US economic system and the crypto panorama.
Why Should The US Establish Strategic Bitcoin Reserves?
CryptoQuant CEO and founder Ki Young Ju is the newest to weigh in on the difficulty of strategic Bitcoin reserves within the United States. In a put up on the X platform, the crypto skilled said that utilizing the world’s largest cryptocurrency to offset the United States debt is a possible method.
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 12 months alone, $352 billion in inflows have added $1 trillion to its market cap.
Young Ju then disclosed that the United States may trim their home debt (70% of the full) 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 displaying BTC's realized cap | Source: Ki_young_ju/X
Young Ju believes that utilizing a “pumpable asset” like BTC to compensate for dollar-denominated debt may face the problem of collectors’ acceptance. However, the US instituting a strategic Bitcoin reserve may function a “symbolic first step” towards bringing global, nationwide legitimacy to the flagship cryptocurrency — as seen with belongings like gold.
In the put up on X, the CryptoQuant CEO recognized outdated whales dumping their BTC to spite the US authorities as a threat that would include establishing a strategic Bitcoin reserve.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,” Young Ju concluded.
BTC Price At A Glance
As of this writing, the price of BTC is hovering across the $97,000 mark, reflecting a 0.4% decline up to now 24 hours. According to knowledge 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 | Source: BTCUSDT chart on TradingView
Featured picture from iStock, chart from TradingView
