A bill related to Bitcoin is gaining support in the United States, signaling the potential for this cryptocurrency to reach a price of $1 million.
The victory of former President Donald Trump in the presidential election on November 5, 2024 has created optimism for more crypto-friendly policies.
One of the most anticipated bills is the Bitcoin Act, initiated by Republican Senator Cynthia Lummis of Wyoming, which proposes the creation of a strategic Bitcoin (BTC) reserve fund for the United States, making the country the first to use it as a "savings technology".
Lummis' Bitcoin Bill. Source: Lummis.senate.gov
The proposal for a Bitcoin reserve fund is gaining significant support due to Trump's victory and the upcoming Republican majority in the Senate, according to Anastasija Plotnikova, co-founder and CEO of Fideum.
Bipartisan support suggests the bill could be passed within the next four years. Plotnikova said: "State-level momentum is building, with initiatives like Pennsylvania's Strategic Bitcoin Reserve Act acting as a model for broader acceptance".
She added: "At the federal level, the current US government's Bitcoin holdings, valued at $18 billion to $19 billion, provide a strong foundation to deploy a reserve fund".
The bill is generating widespread excitement, as it could drive Bitcoin to a valuation above $1 million, according to Adam Back, co-founder and CEO of Blockstream, the inventor of Hashcash and one of the most prominent cryptographers in the field.
A US Strategic Bitcoin Reserve Act Could Pave the Way for Bitcoin to Reach $1 Million
The potential for the world's largest economy to open a Bitcoin reserve fund could push Bitcoin past the seven-figure mark in this cycle, Back said in a post on X on November 18.
Source: Adam Back
Back expects prices to rise rapidly as markets have not yet priced in the potential of the reserve act.
Daily BTC/USD chart. Source: TinTucBitcoin
Bitcoin is currently fluctuating around the $100K mark, trading just 2% below its peak, trading above $98K as of 12:31 UTC, according to data from TinTucBitcoin.
The bill has the potential to bring about significant economic transformations, as it could attract more institutional investors, Plotnikova from Fideum said. She added:
"Analysts suggest it could push Bitcoin to around $500K while attracting institutional investors like pension funds and sovereign wealth funds, further legitimizing Bitcoin as an asset class. This proposal also aligns with Trump's vision of positioning the US as a global leader in crypto innovation."
The bill has received support from some political figures, including Democratic Congressman Ro Khanna.
Trump's Term Could End the "War on Crypto", According to MicroStrategy's Saylor
Others are also optimistic about the future of the crypto space under Trump's tenure, including Michael Saylor of MicroStrategy.
Implications of Trump's Red Wave. Source: Michael Saylor
Trump's term and a Republican-controlled Senate could have significant positive implications for the crypto industry, including ending the "war on crypto", accelerating institutional adoption, and a strategic Bitcoin reserve fund, among other benefits, Saylor shared in a presentation on November 16.
Upcoming Organizational Milestones for Bitcoin. Source: Michael Saylor
Saylor also predicted other significant organizational milestones for Bitcoin, such as the emergence of Bitcoin ETFs, traditional banks approving crypto-backed lending, and the acceptance of Bitcoin as collateral.
