The post Bernstein Says Next Bitcoin Bull Run Is Loading, Expects US Fed to Sell Gold Reserve for BTC appeared on BitcoinEthereumNews.com.

Leading brokerage firm Bernstein speculates that the U.S. Federal Reserve could issue debts or sell a portion of its gold reserve to purchase Bitcoin (BTC).  The top broker made this bold prediction in a research report sent to clients today. According to the report, the digital assets presidential working group, led by Crypto Czar David Sacks, is focused on delivering a national Strategic Bitcoin Reserve (SBR).  If the SBR becomes a reality, Bernstein expects other nations to follow suit and acquire Bitcoin as a reserve asset.  The potential creation of a national digital asset reserve has been a major topic of discussion. While some crypto enthusiasts argue the U.S. government might buy and hold only Bitcoin for over a decade, others suggested that the initiative might feature multiple crypto assets alongside BTC.  Bernstein Shares Insights About Funding of Potential SBR  Notably, Bernstein’s note also addressed two major structural questions relating to the potential Bitcoin reserve.  The question revolves around which U.S. financial departments between the Treasury and Fed will acquire the Bitcoin for the reserve and how the acquisition will be funded.  Per Bernstein, if the U.S. government chooses the Fed to acquire Bitcoin, this would require legislative approval. In terms of funding the BTC acquisition, Bernstein suggested that the Fed could either sell a portion of its gold reserves or issue debts.  Another alternative, according to Bernstein, could involve adding the seized Bitcoin, totaling $20 billion, to the national digital asset reserve.  Next Bitcoin Bull Run Loading  Interestingly, Bernstein stated that the upcoming Bitcoin reserve could pave the way for the next leg of the bull market. The asset manager noted that anticipation for a Bitcoin ETF pushed the price of Bitcoin from $25,000 to $46,000 in January 2024, when the products launched.  Afterward, strong inflows into the multiple…

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Filed under: News - @ February 17, 2025 5:19 pm