Potential U.S. Policy Shift May Propel Bitcoin Prices to $1 Million
A recent U.S. policy shift may drive Bitcoin prices up significantly, with projections reaching $1 million per coin. The U.S. government is exploring buying 1 million Bitcoins following an executive order aimed at creating a Strategic Bitcoin Reserve. The introduction of tariffs could fund these acquisitions. Recent Bitcoin ETF inflows suggest rising investor confidence compared to Ethereum, which is seeing outflows.
A recent policy shift in the U.S. could potentially lead to significant increases in Bitcoin’s value. Experts from the Bitcoin Policy Institute indicate that the U.S. government could instigate a price surge by amassing substantial Bitcoin reserves, with projections suggesting prices could reach $1 million per coin.
Zach Shapiro, head of policy at the Bitcoin Policy Institute, recently discussed the ramifications of the U.S. purchasing 1 million Bitcoins. He characterised such a move as a possible “global seismic shock” capable of propelling Bitcoin prices to seven figures, as reported by Cointelegraph.
This speculation follows an executive order from former President Donald Trump, issued on March 7, which mandated the establishment of a Strategic Bitcoin Reserve. The initiative aims to bolster the U.S.’s position as a “Bitcoin superpower” and encourages agencies to devise strategies for Bitcoin accumulation without increasing taxpayer burdens.
The concept of a “Bitcoin arms race” may redefine national power within the digital realm. Additionally, experts suggest that strategic asset sales, like oil and land, could finance Bitcoin acquisitions, along with revenues generated from tariffs and royalties, keeping funding sources off taxpayer rolls.
In a further move on April 2, Trump introduced a 10% tariff on all imports, a decision that might financially assist in Bitcoin acquisitions, though the broader trade ramifications remain unclear. Senator Cynthia Lummis also reintroduced the BITCOIN Act, aiming to bolster U.S. Bitcoin reserves beyond the initial target of one million.
April 15 marked a notable uptick in Bitcoin ETF activity, with inflows of $76.42 million, signalling renewed investor interest. Leading firms, including Blackrock, Ark 21Shares, and Bitwise, spearheaded this growth, contrasting with Ether ETFs, which experienced continued outflows of $14.18 million. Presently, total net assets in Bitcoin ETFs have approached $93.72 billion, indicating a widening gap in investor sentiment between Bitcoin and Ethereum.
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