A Bitcoin Reserve Act may end crypto’s 4-year boom-bust cycle

The Bitcoin Reserve Act could break the Halving cycle. Is this four year cycle going to play out differently, will we enter the mythical Supercycle?

With speculation mounting that incoming President Donald Trump may sign an executive order declaring a Bitcoin Reserve on day one, or pass legislation to establish a Reserve during his term, many wonder if the move could lead to a crypto supercycle.

Since Wyoming Senator Cynthia Lummis introduced the Bitcoin Reserve Act earlier this year, states like Texas and Pennsylvania have filed similar proposals. Russia, Thailand and Germany are reportedly considering proposals of their own, further ramping up pressure.

If governments are competing to secure their own stockpiles of Bitcoin, would we say goodbye to the four-year boom-bust cycle in crypto prices that many attribute to Bitcoin’s halving?

Iliya Kalchev, dispatch analyst from crypto lender Nexo, believes “the Bitcoin Reserve Act could be a landmark moment for Bitcoin signaling its “recognition as a legitimate global financial instrument.”

Lummis’ proposed Bitcoin Act 2024 would enable the US government to insert Bitcoin (BTC) into its treasury as a reserve asset by buying 200,000 BTC annually over five years, accumulating 1 million Bitcoin, which it would hold for at least 20 years.

Jack Mallers, founder and CEO of Strike, believes Trump has the “potential to use a day-one executive order to purchase Bitcoin” although he cautioned that it would not equate to a 1 million Bitcoin purchase. 

Dennis Porter, co-founder of the nonprofit organization Satoshi Act Fund, which supports pro-Bitcoin US policy bills, also believes Trump is exploring enabling a strategic Bitcoin reserve through an executive order.

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