Why The Bitcoin Act In The USA Could Propel The Price Of BTC To 1 Million $?

The return of Donald Trump to the White House could mark a historic turning point for Bitcoin. The proposal for a national strategic reserve of Bitcoin, championed by Republican lawmakers, gains credibility with Trump’s victory in the 2024 presidential election. This initiative could propel BTC prices to unprecedented heights, according to experts.

A revolutionary bill driven by the Republican camp

The U.S. Senate is currently reviewing the “Bitcoin Act”, a bill sponsored by Republican Senator Cynthia Lummis of Wyoming. This historic text aims to establish a strategic Bitcoin reserve for the United States, potentially making the country the first nation to use crypto as a national savings technology.

The project already enjoys bipartisan support, notably from Democratic Representative Ro Khanna, and its likelihood of adoption has significantly strengthened with the new Republican majority in the Senate.

The U.S. government currently holds Bitcoin assets estimated between 18 and 19 billion dollars, thus forming a solid foundation for setting up this strategic reserve.

According to Anastasija Plotnikova, CEO of Fideum, several states like Pennsylvania have already launched similar initiatives, paving the way for a wider federal adoption.

A catalyst for explosive Bitcoin valuation

Adam Back, co-founder of Blockstream and inventor of Hashcash, predicts a spectacular rise in Bitcoin that could reach a million dollars in this market cycle. This projection relies on the transformative effect that the adoption of such a law by the world’s largest economy would have, a factor the markets have yet to incorporate into their assessments.

Bitcoin is currently trading around 99,000 dollars, just 2% off its all-time high. For Michael Saylor, CEO of MicroStrategy, a Trump presidency could mark the end of the “war against cryptos” and accelerate institutional adoption.

This evolution would come alongside other major advances such as the creation of options on Bitcoin ETFs and the acceptance of crypto as collateral by traditional financial institutions.

The establishment of a strategic Bitcoin reserve in the United States could not only propel its price to unprecedented levels but also definitively legitimize crypto as an asset class among institutional investors, including pension funds and sovereign wealth funds. This initiative would align perfectly with Trump’s vision of positioning the United States as a global leader in crypto innovation.