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Bitcoin Hits Record High on Strategic Reserve Speculation
On Monday, December 16, bitcoin (BTC) climbed to a record high of $105,815. Market optimism stemmed from speculation that US President-elect Donald Trump could deliver his pledge to make BTC a US strategic reserve asset.
Strike CEO Jack Mallers intensified speculation while appearing on Timcast, stating,
“I also know Trump is looking at a day-one executive order. […] So, I know there’s people looking at the Dollar Stabilization Act, as it gives the President wide discrepancy to protect the dollar, and there’s potential to use a day-one Executive order to purchase BTC. It wouldn’t be at the size and scale of a million coins, but it would be a significant position.”
US government plans to acquire BTC and become a BTC HODLER would mitigate oversupply risk and materially tilt the supply-demand balance in BTC’s favor. The US government currently has a 198,109 BTC stockpile, equivalent to $20.83 billion.
Sunday’s comments followed news of Republican Senator Lummis meeting with incoming Treasury Secretary Scott Bessent. Senator Lummis, a digital asset advocate, commented,
“Scott Bessent will be a champion for digital assets and a crucial ally in passing my Strategic Bitcoin Reserve. I look forward to working closely with the future Treasury Secretary to restore fiscal responsibility!”
Senator Lummis introduced the Bitcoin Act of 2024, proposing the US government accumulate one million BTC – 5% of the total supply – over five years as a possible solution to the national debt crisis.
Bitcoin Price Outlook
On Sunday, December 15, BTC advanced by 2.89%, reversing Saturday’s 0.13% drop to close at $104,183, a new record close.
Near-term BTC price trends will depend on progress toward an SBR, US BTC-spot ETF market flow trends, and US government BTC activities. A substantial BTC sale by the US government could fuel oversupply jitters, potentially pulling prices below $100,000.