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Bitcoin (BTC) Revises $100,000 of Trump’s SBR Plans
Market sentiment towards BTC demand remained bullish on Sunday, with BTC closing above $100,000 for the first time. Market optimism improved as investors anticipated Trump’s pro-crypto CFTC chairman nomination and discussions about BTC becoming a US strategic reserve asset (SBR).
The SEC and CFTC chairs should establish clear regulatory guidelines to ease BTC’s path to becoming a U.S. Strategic Reserve (SBR).
Demand for BTC could increase if Congress, the Federal Reserve, the Treasury Department, and the President approve BTC as a strategic reserve.
The US government would also maintain its position 198,109 BTC supplyequivalent to US$19.73 billion, mitigating oversupply risk.
MicroStrategy Founder and CEO Offers Strategic BTC Move
On Saturday, MicroStrategy (MSTR) founder and chairman Michael Saylor called on the US government to exchange US gold reserves for BTC. proverb,
“BTC is emerging as the world’s reserve capital network. People are realizing that BTC is better than real estate. It’s better than stocks. There is no company or property you would rather own for the long term than BTC.”
Saylor added,
“If you want to put a big spin on it, dump your gold, sell all the US gold, buy BTC, then the trade is free because for the price of the gold you can buy five million BTC. You would demonetize the entire gold asset class, and our enemies keep gold in their banks. So their assets would go to zero, our assets would go to $100 trillion, and we would control both the global reserve capital network and the global reserve currency network.
Saylor’s comments align with Senator Cynthia Lummis’ recent call to sell gold to acquire BTC as an SBR. Senator Lummis said the exchange would allow the US government to increase its BTC supply without increasing the US government’s deficit.
Amicus Curiae lawyer John E. Deaton referred to the views of the new CEO of Charles Schwab on the price developments of SBR and BTC, to report,
“The incoming president, along with virtually his entire government, is talking about an SBR (strategic BTC reserve) […]. Even the CEO of Charles Schwab (who doesn’t own Bitcoin and now feels stupid for not buying it) recently said that if an SBR happens, Bitcoin will go to $500,000 to $1 million.”
Bitcoin Price Outlook
On Sunday, BTC gained 1.32%, after rising 0.03% on Saturday, to close at $101,044. Significantly, BTC ended the session above $100,000 for the first time.
Short-term BTC price movements will depend on the market flows of US BTC spot ETFs and Trump’s appointment of the chairman of the Commodity Futures Trading Commission (CFTC). A pro-crypto CFTC chairman could fuel speculation that BTC would become a US strategic reserve. Rising demand for US BTC spot ETFs could also push BTC higher.
In the short term, however, investors should keep an eye on potential oversupply signals. Mount Gox and the US government could potentially influence BTC trends with transfers to new wallets.
Mount Gox currently owns 36,085 BTCequivalent to $3.61 billion, to return to investors. Mount Gox collapsed in February 2014, when BTC was worth less than $600. The crypto community expects creditors to pay out significant windfalls after being paid out in BTC.