Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of BitMaden. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

What is the Current State of the Process of Creating a Strategic Bitcoin Reserve in the US? Here are All the Need-to-Know Details

Once seen as a far-fetched idea, a proposal to create a strategic Bitcoin reserve is gaining traction in the United States, with the support of former President Donald Trump. While proponents see it as a bold step toward securing America’s financial future, critics argue it could jeopardize Bitcoin’s decentralized nature and lead to complex economic challenges. The concept of a national Bitcoin reserve was introduced by Dennis Porter, co-founder of the Satoshi Action Fund, a nonprofit organization founded in 2022 to advocate for Bitcoin adoption at the state and federal levels. Once a small idea, the proposal gained momentum after Trump publicly supported it during a Bitcoin conference in Nashville, Tennessee, in July. Appearing on CNBC earlier this month, Trump expressed support for the idea when asked if the federal government envisioned a strategic cryptocurrency reserve similar to oil reserves. “I think so,” Trump replied, adding, “We’re going to do great things in crypto.” Porter sees Trump`s support as a turning point that has encouraged other politicians to embrace the concept. Republican Sen. Cynthia Lummis of Wyoming has emerged as a leading advocate of a federal Bitcoin reserve. This summer, she introduced a bill that would have the U.S. government purchase 1 million Bitcoins over five years. Lummis argues that such a move could help solve the national debt, which has reached $36 trillion, and cement America’s leadership in financial innovation. “My generation has spent federal dollars without limits for years,” Lummis said. “A strategic Bitcoin reserve gives us the chance to pay off nearly half of our national debt in the next 20 years and ensure we remain a leader in 21st century finance.” The idea has gained bipartisan support, with Democratic Representative Ro Khanna of California proposing that Bitcoin seized from criminal activity be held by the government as part of its reserves rather than sold immediately. Lummis’ plan to fund Bitcoin purchases involves revaluing the United States’ gold reserves, which are currently priced at $42 per ounce, well below the market rate of around $2,650 per ounce. By adjusting the valuation, the government could theoretically make a paper profit from financing Bitcoin purchases without issuing new debt or increasing taxes. Related News: How Will January Go in Cryptocurrencies? How is the Market Sentiment? But critics say the approach is not without consequences. Monetary economist George Selgin described the plan as a “backdoor loan” that relies on financial maneuvers to bypass traditional appropriations processes. The proposal has faced significant backlash from Bitcoin proponents who see government intervention as contrary to BTC’s original vision of decentralization. Mark Goodwin, editor-in-chief of Bitcoin Magazine, has expressed concerns that a state-controlled Bitcoin reserve could hinder BTC’s development as a decentralized currency and overpower the traditional financial system. Kathryn Austin Fitts, a former investment banker and federal official, argued that the plan benefits wealthy Bitcoin holders by creating a guaranteed recipient. She lamented that Bitcoin, once conceived as a revolutionary payments system, has morphed into what she called a “pump-and-dump financial product.” Despite the criticism, Porter and his team have continued to push the idea at both the federal and state levels. Last week, Texas introduced a bill to create a state-level Bitcoin reserve, and similar proposals have emerged in Pennsylvania and Ohio. According to Porter, the fight for Bitcoin reserves is about much more than economics. “Bitcoin is too important to give up on this fight,” he said. US President Donald Trump, who supports the idea, will take office on January 20. *This is not investment advice. Continue Reading: What is the Current State of the Process of Creating a Strategic Bitcoin Reserve in the US? Here are All the Need-to-Know Details Crypto Potato

---

Bitcoin Price Analysis: BTC Risks Dropping Toward $80K if it Fails to Reclaim $100K Soon

Bitcoin has failed to sustain its rally above the $100K level and has been correcting over the last week. Yet, a bullish continuation can materialize soon. Technical Analysis By Edris Derakhshi (TradingRage) The Daily Chart On the daily chart, the asset dropped below the $100K level last week and has failed to climb back above it since. While the $90K support zone has held the market, preventing it from dropping lower, the price has failed to break above the $100K level yet again and is getting rejected to the downside. This could result in a deeper continuation below the $90K and toward the $80K area in the coming weeks if the price fails to break back above $100K. The 4-Hour Chart Looking at the 4-hour timeframe, things look slightly more tricky for Bitcoin. The price has recently broken the ascending channel pattern to the downside, which can be a reversal signal. The lower boundary of the pattern has also been retested twice alongside the $100K resistance level. Yet, both levels have held and pushed the asset lower, which could lead to a drop toward the $90K level and even lower in the short term. On-Chain Analysis By Edris Derakhshi (TradingRage) Long-Term Holder SOPR Not everything can be figured out using technical and price analysis. For a better view of the underlying dynamics of the Bitcoin network, it is beneficial to analyze on-chain metrics. This chart presents the long-term holder SOPR metric, which measures the ratio of profit realization by investors who have held their coins for over 6 months. As the chart suggests, the realized profit is relatively high, but it has yet to reach the values previously seen when the market was consolidating below the $70K level. This is especially interesting, as BTC is now trading around $100K. As a result, it could be interpreted that long-term holders’ selling pressure is still insufficient to overwhelm the market, and the price could still rally higher in the coming weeks. The post Bitcoin Price Analysis: BTC Risks Dropping Toward $80K if it Fails to Reclaim $100K Soon appeared first on CryptoPotato . Crypto Potato