Bitcoin’s $100K Moment: The Strategic Bitcoin Reserve (SBR) Revolution
Inches away from hitting $100,000, Bitcoin price is all set to make history and finally be a six-figure coin.
The world’s largest cryptocurrency, with a market cap of $1.95 trillion, has had a wild time this year, which has helped the total crypto market cap surpass $3.43 trillion, with both old coins like XRP and new meme coins like SBR rallying like crazy.
Up more than 170% in the past year, Bitcoin has simply been hitting one milestone after another.
First, Bitcoin surpassed the 2021 all-time high (ATH) of $69,000 in mid-March before the halving took place a month later. That price action was driven by the crypto king getting a spot exchange-traded fund (ETF) approved in the US.
The US Securities and Exchange Commission (SEC) gave Spot Bitcoin ETFs a green light after a decade-long fight that made the market euphoric. Ever since their approval in early January this year, US Bitcoin ETFs have collectively captured $30.35 billion value and have $105.9 billion in net assets, according to SoSo Value.
With the mainstream asset manager giants BlackRock and Fidelity entering the Bitcoin space, the crypto market has gained a legitimacy that has made it an investable asset class for institutions at large.
After hitting the local top in March, Bitcoin has had a brutal sideways action for the next nearly eight months, which chopped many traders to death as prices went under $50K in August.
But this was just a momentary step back before the BTC price was to go even higher. After having the best September ever and continuing the trend of Uptober, November was when BTC simply exploded. Pro-crypto President Donald Trump’s victory on Nov. 5 sent the Bitcoin price from about $67K to as high as $99,486 this Thursday.
As to why Trump is driving this bull mania, the President-elect has come in strong support of crypto during his campaign, promising to make the US the Bitcoin capital of the world, remove SEC Chairman Gary Gensler—who has already announced his exit plans—and create a more crypto-friendly regulatory environment.
But most importantly, Trump has announced the creation of a Strategic Bitcoin Reserve (SBR), under which he will ensure that the US government does not sell any BTC seized from criminals and, on top of that, add even more BTC to its stash.
Strategic Bitcoin Reserve (SBR) Changing the Game
Imagine the world’s largest economy buying and holding Bitcoin as a reserve asset. The impact of such a move will be tremendous on BTC and the entire crypto industry.
Trump made these promises earlier this year, and developments have already started in this direction. Trump is reportedly currently creating a crypto council that will help establish bitcoin reserves.
Meanwhile, Senator Cynthia Lummis (R-WY) has introduced a bill that will require the US government to acquire Bitcoin until its reserves reach 5 million BTC as a solution to reduce the US’s $36 trillion national debt.
Most recently, Lummis suggested using existing assets, specifically gold certificates, to buy Bitcoin, which she said “is the gold standard digital asset, and a strategic bitcoin reserve is the way to embed it.”
If SBR becomes a reality, Bitcoin price has the potential to pull a move that may put this year’s price action to shame. After all, SBR would require nation-states to buy millions of dollars worth of BTC in addition to the ongoing institutional BTC buying spree.
While these new prices may price out retail investors, a new class of sophisticated investors will take its place, which we have already begun to see this year thanks to Spot Bitcoin ETFs. The SBR may actually lead to increased allocation by these investors. So far, institutions are investing only a small percentage of their portfolios in Bitcoin, but as it becomes more valuable and gets a nod from the President, they may be compelled to create a new baseline for portfolio allocations.
The amount of media attention and public interest a Strategic Bitcoin Reserve (SBR) would generate would be unprecedented, putting BTC on par with gold and validating the ‘digital gold’ narrative.
All this demand, while Bitcoin’s supply remains fixed at 21 million, can have a huge impact, which, according to some market participants, may push the price to a million per BTC in the not-so-distant future.
Buoyed by regulatory tailwinds from Trump’s election, asset manager VanEck also expects the bullish rally to continue with growing interest. Currently, BTC price is in “uncharted territory with no technical price resistance,” wrote Matthew Sigel, VanEck’s Head of Digital Assets Research,” adding that it’s “the next phase of the bull market,” which is “just beginning.”
Sigel reiterated its price target of $180K per BTC this cycle. Late last month, he projected that Bitcoin could hit $3 million by 2050 if it becomes a reserve asset with a 2% central bank allocation.
SBR is clearly the way forward. As SBR gets all the attention, traction, and capital flow against the backdrop of devaluing fiat currency, FOMO, and rising demand from states, institutions, and nation-states, the trillion-dollar decentralized asset—with no centralized entity in control and with a fixed supply—will hit $100K, serving as a stepping stone for BTC to soar to new highs!
SBR is clearly the way forward. As SBR gets all the attention, traction, and capital flow against the backdrop of devaluing fiat currency, FOMO, and rising demand from states, institutions, and nation-states, the trillion-dollar decentralized asset with no centralized entity in control and with a fixed supply will hit $100K, which will act as a stepping stone for BTC to fly to new highs!
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About The Author
Gregory, a digital nomad hailing from Poland, is not only a financial analyst but also a valuable contributor to various online magazines. With a wealth of experience in the financial industry, his insights and expertise have earned him recognition in numerous publications. Utilising his spare time effectively, Gregory is currently dedicated to writing a book about cryptocurrency and blockchain.
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Gregory, a digital nomad hailing from Poland, is not only a financial analyst but also a valuable contributor to various online magazines. With a wealth of experience in the financial industry, his insights and expertise have earned him recognition in numerous publications. Utilising his spare time effectively, Gregory is currently dedicated to writing a book about cryptocurrency and blockchain.
