The post Will The Bitcoin Reserve Act Impact Crypto’s Four-Year Gains Cycle? appeared on BitcoinEthereumNews.com.

President-elect Donald Trump has said he will sign an executive order to create a Bitcoin reserve on his first day in office. This has left many wondering how it could impact crypto’s current four-year boom-bust cycle and lead to a crypto supercycle.  Earlier this year, Wyoming Senator Cynthia Lummis introduced the Bitcoin Reserve Act. Texas and Pennsylvania have also introduced proposals to establish a state Bitcoin reserve.  Can A Bitcoin Reserve Impact Current Cycles?  Besides the US, several countries like Russia, Germany, and Thailand are contemplating similar proposals. If governments attempt to create a stockpile of Bitcoin (BTC), could it impact crypto prices and the four-year boom-bust cycle attributed to Bitcoin’s halving event? Some analysts like Iliya Kalchev believe the Bitcoin Reserve Act could be a landmark moment for Bitcoin and signal its recognition as a legitimate financial instrument. Bitcoin has already garnered significant attention from major financial institutions, who have started adding it to their reserves. Kalchev stated,  “Every Bitcoin cycle has a narrative trying to push the idea that ‘this one is different.’ The conditions have never been so ideal. Crypto has never had a pro-crypto US President who controls the Senate and the Congress.” The Bitcoin Reserve Act would allow the US government to add Bitcoin to its treasury as a reserve asset. The act states that the government must buy 200,000 BTC annually over five years and hold the asset for at least twenty years. Jack Mallers, founder and CEO of Strike, believes Trump could issue an executive order to purchase Bitcoin. However, he added that it would not equate to a 1 million BTC purchase.  “It wouldn’t be the size and scale of 1 million coins, but it would be a significant position.” Dennis Porter, the co-founder of the non-profit act Satoshi Act Fund, which…

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Filed under: News - @ December 21, 2024 2:16 pm