Fri 20 Dec 2024 ▪
6 min read
▪
by
Luc Jose A.
The crypto ecosystem could enter an unprecedented transformation phase. For years, markets have followed well-established cycles dictated by the internal mechanisms of bitcoin, including the halving, which times the periods of rise and fall. Today, a large-scale political initiative is emerging, likely to disrupt these historical foundations. American Senator Cynthia Lummis has proposed the Bitcoin Reserve Act, a bill aimed at recognizing bitcoin as a strategic reserve asset for the United States. This initiative, which plans for the gradual integration of one million bitcoins into the U.S. federal reserves, is set against a backdrop of increasing economic and geopolitical rivalries. As powers like Russia and Germany also consider adopting similar strategies, this proposal raises questions. Furthermore, the implications of such an approach go beyond American borders and redefine the role of Bitcoin on the international stage, granting it an unprecedented status in the history of cryptos.