2024

United

Bitcoin

Reserve

<div>Other well known people in the crypto industry like Wyoming Senator Cynthia Lummis also recently advocated for a U.S. Bitcoin strategic reserve, and proposed some innovative approaches to buy the asset without impacting the national budget too much. Investors like Anthony Pompliano warned people of the global ”Bitcoin race,” and urged the U.S. to adopt Bitcoin to stay competitive. Analysts are still, however, divided on what lies ahead for Bitcoin before the end of the year. BTC projections range from corrections to $70,000 to surges to over $135,000.<h2 id="rfk-jr-invests-most-of-his-wealth-in-bitcoin">RFK Jr. Invests Most of His Wealth in Bitcoin</h2><a href="https://x.com/RobertKennedyJr" rel="noopener noreferrer nofollow">Robert F. Kennedy</a> Jr. once again attracted attention for his outspoken support of Bitcoin (BTC). He even referred to the cryptocurrency as the ”currency of freedom” in a recent online post.&nbsp;Kennedy is a former presidential candidate, and revealed that he invested the majority of his wealth into Bitcoin during a Bitcoin conference. He also reiterated his belief in Bitcoin as a hedge against inflation and a tool to stabilize the U.S. dollar. In a resurfaced video, Kennedy shared that he is committed to the digital asset because of its decentralized and supply-capped nature.Kennedy’s enthusiasm for Bitcoin dates back years. In July of 2023, he <a href="https://x.com/scottmelker/status/1684266777910337549?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1684266777910337549%7Ctwgr%5E951e709176240f6eead7d77441acb2655d967797%7Ctwcon%5Es1_&amp;amp;ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Fpresidential-candidate-rfk-jr-purchased-bitcoin-for-his-children" rel="noopener noreferrer nofollow">shared</a> that he&nbsp;bought Bitcoin for each of his seven children, and stated that he wanted to ”put his money where his mouth is.” He also continued to advocate for Bitcoin in his political agenda, and proposed big reforms to integrate the cryptocurrency into the U.S. financial system.In April of 2024, he suggested placing the entire U.S. fiscal budget on the blockchain to ensure transparency and accountability. During the Bitcoin 2024 event in Nashville, Kennedy also pledged to establish a Bitcoin strategic reserve and <a href="https://x.com/AutismCapital/status/1816951410728317217" rel="noopener noreferrer nofollow">proposed</a> transferring the U.S. government’s Bitcoin holdings to the Federal Reserve through an executive order.In a July 2024 interview, Kennedy talked about Bitcoin's potential to boost the U.S. dollar’s status as the global reserve currency. He described Bitcoin as ”inevitable” and believes there is a need for the United States to embrace it as part of a strategic financial reserve.&nbsp;<h2 id="cynthia-lummis-continues-to-push-for-u-s-bitcoin-reserve">Cynthia Lummis Continues to Push for U.S. Bitcoin Reserve</h2>Wyoming Senator Cynthia Lummis also proposed a bold initiative for the United States Treasury to convert a portion of its gold holdings into Bitcoin to establish a Bitcoin strategic reserve. Lummis <a href="https://www.bnnbloomberg.ca/investing/2024/11/14/trumps-ally-lummis-pushes-to-sell-some-of-the-feds-gold-to-buy-bitcoin/" rel="noopener noreferrer nofollow">explained to Bloomberg</a> that by using gold certificates held by the Treasury, the move could be achieved without any immediate impact on the government’s balance sheet. It could also avoid the need to spend an estimated $90 billion to buy Bitcoin outright at current market prices.Lummis has long advocated for the Treasury to diversify its assets with Bitcoin but did not previously clarify exactly&nbsp;which holdings should be liquidated for the acquisition. Lummis believes it is important to address inflation and the escalating national debt. The plan is for the proposed reserve to buy 5% of Bitcoin’s total supply, which is equivalent to 1 million BTC, which would be held for 20 years. While the cost of this initiative is very large at approximately $90 billion, advocates argue that it only still represents a small fraction of government expenditures.Government assets and liabilities (Source: <a href="https://fiscal.treasury.gov/reports-statements/financial-report/where-we-are-now.html" rel="noopener noreferrer nofollow">Bureau of the Fiscal Service</a>)Some well known people in the financial sector also weighed in on the plan. Investor Anthony Pompliano <a href="https://x.com/APompliano/status/1857786689105666519" rel="noopener noreferrer nofollow">pointed out</a> that the U.S. national debt increased by $850 billion in just three months, which is a sum that dwarfs the cost of establishing a Bitcoin reserve. He described the investment as a relatively small but strategic move in the context of government spending due to its potential long-term benefits.On the other hand, Galaxy Digital CEO <a href="https://www.bloomberg.com/news/audio/2024-11-13/bloomberg-talks-mike-novogratz-talks-bitcoin-rally-podcast" rel="noopener noreferrer nofollow">Mike Novogratz is more skeptical</a> about the plan's feasibility under President-elect Donald Trump’s administration. Despite this, Novogratz speculated that if such a reserve were created, it could drive Bitcoin’s price to $500,000 per coin.<h2 id="anthony-pompliano-warns-u-s-of-bitcoin-race">Anthony Pompliano Warns U.S. of Bitcoin Race</h2>Anthony Pompliano also recently declared that the global race for Bitcoin among sovereign nations is already underway. On <a href="https://x.com/YahooFinance" rel="noopener noreferrer nofollow">Yahoo Finance</a>, Pompliano shared that governments have to prioritize adding Bitcoin to their balance sheets to avoid being outpaced by other nations.&nbsp;By pointing out some of President-elect Trump’s campaign promises, Pompliano argued that establishing a Bitcoin strategic reserve will be a critical move to protect the United States from being front-run by competitors. Unlike gold, which can be mined indefinitely, Bitcoin’s finite supply makes it a uniquely scarce and valuable asset.Additionally, Pompliano pointed to currency devaluation as a key driver of this global Bitcoin arms race, especially as U.S. residents lost around 25% of their <a href="https://x.com/jeffreyatucker/status/1857065824634237235" rel="noopener noreferrer nofollow">purchasing power</a> over the past five years. He also mentioned smaller nations like Bhutan and El Salvador as early adopters of Bitcoin who have benefitted from their ability to take strategic risks without facing the same global economic pressures as a superpower like the United States.&nbsp;Despite these challenges, Pompliano argued that the downside risk for the U.S. investing in Bitcoin is minimal. He explained that recent increases in national debt, like the $850 billion rise over the past 90 days, far exceed the cost of buying a big portion of Bitcoin’s market cap, making the investment a small fraction of overall government spending.Domestically, the push for Bitcoin adoption is also gaining some traction. Florida’s Chief Financial Officer, <a href="https://x.com/JimmyPatronis/status/1851351305912270934" rel="noopener noreferrer nofollow">Jimmy Patronis, proposed</a> allocating part of the state pension fund to Bitcoin. Similarly, Pennsylvania lawmakers introduced a Bitcoin strategic reserve bill in November of 2024, which, if passed, would allow the state treasury to hold up to 10% of its assets in Bitcoin.&nbsp;<h2 id="cryptoquant-ceo-predicts-135k-bitcoin-ceiling">CryptoQuant CEO Predicts $135K Bitcoin Ceiling</h2>Meanwhile, CryptoQuant founder and CEO <a href="https://x.com/ki_young_ju" rel="noopener noreferrer nofollow">Ki Young Ju</a> updated his Bitcoin price forecasts. He now projects a ceiling of $135,000 and a 2024 target of $112,000. The revised predictions are based on capital flows into the Bitcoin market, including those from exchange-traded funds (ETFs) and other investment products.&nbsp;Ju believes that these projections are dynamic and can still change as market conditions evolve. He also warned traders about the risks of overleveraged positions, and pointed out&nbsp;that the futures perpetual market is currently overleveraged at 2.7 times the levels seen earlier in 2024. Ju advised traders to stay long-term bullish but to approach leverage with a bit more caution due to the potential for cascading liquidations to place downward pressure on Bitcoin's price.Analysts are divided on Bitcoin’s next moves. While Ju is optimistic, other CryptoQuant contributors offered different perspectives. <a href="https://cryptoquant.com/insights/quicktake/67387d34ab15746661997871-Have-we-reached-the-first-zone-without-danger-MVRV-LTHs-supply" rel="noopener noreferrer nofollow">Contributor Percival</a> shared that some long-term Bitcoin holders, who have held their positions for at least 155 days, are starting to take profits around the $90,000 price level. However, he clarified that this group is not representative of the broader cohort of long-term holders, many of whom are likely waiting for even higher prices to achieve larger profits. By using Realized Price UTXO Bands, Percival concluded that the majority of long-term holders expect Bitcoin to climb even more.Another CryptoQuant analyst, <a href="https://cryptoquant.com/insights/quicktake/67386f36ab1574666199784e-Price-chasers-indicate-the-uptrend-is-powerful-but-there-may-be-short-term-issue" rel="noopener noreferrer nofollow">BaroVirtual</a>, suggested a potential price correction to $70,000 as part of Bitcoin’s trajectory toward $100,000. However, he did acknowledge that such a correction could be avoided if Bitcoin maintains a price above $85,000 in the near term.&nbsp;</div>

RFK Jr. Pushes for Bitcoin as a Stabilizer for the U.S. Economy

Table of Contents

Coinpaper.com

Other articles published on Nov 18, 2024

Trump’s 2024 Victory Sparks Dogecoin and PEPE Price Surges—Analysts Predict 3 Altcoins Will Follo...

Polish leader proposes demand for Bitcoin Reserve for the country

Devcon 7 and its Side Events in Bangkok, Thailand, a Recap

Polish minister advocates support for Bitcoin strategic reserve

Google Cloud to Back BNB Chain's MVB Program with $10M in Cloud Service Credits

From $0.04 to $20: This Token Is Predicted to Outpace Cardano and Solana

Join our free newsletter for daily crypto updates!