The crypto market was on a steady ascent through 2024, but Donald Trump’s win has had an unprecedented accelerating impact.
A comparative study of Bitcoin prices revealed that between November 3rd and 6th, Bitcoin’s value rose by more than $6,600, reaching an all-time high (ATH) of nearly US$76,000. The surge is phenomenal!
But this Trump-driven rally didn’t stop there. It has since been continuing, hitting $93,477 on Nov. 13, even eclipsing Bitcoin’s inflation-adjusted peak of $83,000. As of writing, Bitcoin is hovering above US$90K, up 153% in the past year.
However, beyond the price rise and the increase in market capitalization of the crypto space, there is something else that has been grabbing eyeballs and gaining traction: the phenomenon of Strategic Bitcoin Reserve.
What is it, and why is everyone so curious about this development? Let’s delve deeper.
The Curious Case of Strategic Bitcoin Reserve
The original plan for a Strategic Bitcoin Reserve came from Wyoming Senator Cynthia Lummis in the form of proposed legislation in July this year, who posted, “We are going to build a strategic bitcoin reserve,” on X (Previously Twitter) after Trump’s victory earlier this month.
This social media post from the Republican senator, who’s given the moniker of “Crypto Queen” of Capitol Hill, came in the light of Trump’s strong support for crypto throughout his campaign. At one point, he pledged to make America a “Bitcoin superpower.”
During the Bitcoin conference earlier this year, Trump also assured that under his administration, the US government would hold on to its 208,109 BTC, which is mostly seized from criminals.
If Trump delivers on his promises, including making BTC a “permanent national asset,” it may trigger a similar approach in other nations, leading to a Bitcoin buying spree. El Salvador and Bhutan, a small Asian nation, have already accumulated more than $540 million and $1 billion in BTC, respectively, over the past few years.
For now, Lummis’ Bitcoin Act is proposing protecting wealth and financial stability by purchasing 1 million BTC over five years. In an interview with Bloomberg, Lummis even advocated for the US Treasury Department to convert a portion of its gold holdings into BTC for the reserve.
The bill further highlighted the situation of families across Wyoming struggling to keep up with a ‘soaring inflation rate’ while the national debt was reaching “new and unprecedented heights.”
Lummis drew attention to Bitcoin’s transformative potential and how it could be deployed as “savings technology (that) secures our position as a global leader in financial innovation.”
Unleashing the True Power of Bitcoin
While the bill is yet to be approved, the upcoming Republican control of the Senate, the House of Representatives, and the White House early next year raises the possibility of this actually happening. Additionally, Bitcoin bull Michael Saylor believes the proposal will get the green light.
The US government buying Bitcoin wouldn’t even be out of the ordinary. At a recent conference, Saylor pointed to historical acquisitions like the Louisiana Purchase and the acquisition of Manhattan, California, and Alaska, all of which resulted in multi-trillion dollar returns for the country. Not to mention, gold, oil, and grain have also been part of the US’s strategic purchases.
So, “It’s been done before,” and it should be done again, with Saylor recommending figuring out “where the value is going to be” and just buying it cheap and then HODL that asset.
According to Saylor, “Bitcoin is manifest destiny for the United States. I think the Trump administration understands it, I think Senator Lummis understands it… that’s why it will happen.”
Such a move, according to asset manager CoinShares’ CEO Jean-Marie Mognetti, would be a “game-changer” for the entire crypto sector’s growth. If the Bitcoin Act passes and the US government buys up to 5% of Bitcoins’ supply, that would put the trillion-dollar asset in the same role as gold, “giving it a recognized position within the national reserve and signaling a historic level of legitimacy,” noted Mognett.
As the Bitcoin Strategic Reserve movement continues to gain traction, a community of crypto enthusiasts came together to support it via $SBR, which combines traditional reserve principles with cutting-edge blockchain tech. With a total supply of just over 21 million, the token thrives on security, transparency, and innovation.
This grassroots community project is created to bring awareness to the SBR bill and capitalizes on the growing trend of Bitcoin dominance across the spectrum to offer secure financial sovereignty while keeping the approach strategically playful.
Overall, the crypto community has vigorously rallied to push the original bill. With the enthusiasm and support for creating the reserve palpable, the hope is for a more fiscally responsible and rewarding USA by unleashing the true power of Bitcoin.
Greg Grzesiak is an Entrepreneur-In-Residence and Columnist at Grit Daily. As CEO of Grzesiak Growth LLC, Greg dedicates his time to helping CEOs influencers and entrepreneurs make the appearances that will grow their following in their reach globally. Over the years he has built strong partnerships with high profile educators and influencers in Youtube and traditional finance space. Greg is a University of Florida graduate with years of experience in marketing and journalism.
