Next year, when Donald Trump takes office again, many changes are expected in the U.S., and one of the most surprising could involve Bitcoin. On Polymarket, the world’s largest prediction platform, the chances of Trump setting up a “Strategic Bitcoin Reserve” during his first 100 days have jumped from 22% to 38%. This surge in odds happened right after a new law, called the Pennsylvania Bitcoin Strategic Reserve Act, was introduced last week. This act could play a huge role in shaping Bitcoin’s future in the U.S. But there’s more to the story.
In fact, a group called the Satoshi Action Fund, which is behind this initiative, is already talking to 10 other states about introducing similar laws. They also helped Pennsylvania introduce another bill last month, called the Bitcoin Rights Bill. If these bills become law, they could change how Bitcoin is treated in the U.S. and around the world.
The Pennsylvania Bitcoin Reserve Act: What’s at Stake?
The Pennsylvania Bitcoin Strategic Reserve Act is bold. It would allow the state to invest up to 10% of certain state funds—like the General Fund, Rainy Day Fund, and State Investment Fund—into Bitcoin. These funds currently manage about $51 billion, so 10% would equal about $5.1 billion in Bitcoin.
If this bill passes, Pennsylvania will buy a massive amount of Bitcoin. This could shake up the Bitcoin market, especially since it would also mean less Bitcoin available to sell, which could push prices up. But this is just one part of the bigger plan.
The BITCOIN Act: Trump’s Vision for a National Bitcoin Reserve
There’s another key proposal in the works—the BITCOIN Act, introduced by Senator Cynthia Lummis. This act suggests that the U.S. government should create its own Strategic Bitcoin Reserve, where it would buy Bitcoin and hold on to it, including Bitcoin that has been seized by authorities. As of now, the U.S. government already has about 69,370 BTC that it has seized.
The BITCOIN Act also proposes that the U.S. buy up to 200,000 BTC each year for the next five years, totaling 1 million BTC. If this happens, it could result in the U.S. spending around $6.4 billion each year to buy Bitcoin, on top of an additional $18.2 billion each year in bids. Altogether, that’s $23.3 billion in Bitcoin that could be purchased from the market over five years.
What Does This Mean for Bitcoin’s Price?
This plan could have a massive impact on Bitcoin. The combined $23.3 billion worth of Bitcoin purchases, along with the 69,370 BTC seized by the U.S., would reduce the supply of Bitcoin available for sale. Bitcoin’s price could rise because there would be more buyers and less Bitcoin to go around.
The scale of these purchases is mind-blowing. The total Bitcoin that could be bought by both the Pennsylvania bill and the BITCOIN Act is about 256,000 BTC. To put that in perspective, that’s nearly the same amount of Bitcoin traded in an entire month at Coinbase, the largest crypto exchange in the U.S.
The Bigger Picture: What Does It Mean for the Crypto Market?
The idea of the U.S. and states like Pennsylvania investing billions of dollars into Bitcoin could change everything. It would not only increase demand for Bitcoin, but it could also get other countries and major investment firms thinking about Bitcoin as a serious investment.
As the 2024 election gets closer, all eyes are on Trump’s next move. Will he follow through with his Bitcoin promises? If these bills pass, Bitcoin could see a massive boost, and the way governments and big investors treat cryptocurrency could change forever.
In the coming months, expect more discussions around the Strategic Bitcoin Reserve as it becomes one of the biggest topics in the crypto world. Stay tuned to see if Trump’s plan will turn the Bitcoin market upside down.
