US President Donald Trump has announced plans to establish a US bitcoin strategic reserve, following a leaked document revealing Russia may launch a “bitcoin cold war.” The move comes amid growing interest in cryptocurrency from the Russian government, which sees it as an alternative to foreign currency reserves.
The revelation has sparked huge price predictions for bitcoin, with some traders and investors forecasting a market capitalization of over $15 trillion by the end of next year. Trump’s proposal for a US bitcoin reserve has been compared to China’s national digital currency plan, sparking concerns about the potential impact on global economic stability.
The US government has not yet confirmed plans to create a bitcoin strategic reserve, but lawmakers have introduced a bill proposing the purchase of 1 million bitcoins over five years to reduce the country’s $35 trillion national debt. Russia’s president Vladimir Putin has also praised bitcoin as an alternative to foreign currency reserves following the seizure of its funds by Western governments in response to its invasion of Ukraine.
Bitcoin’s price has surged past $100,000 per coin since Trump’s November election win, with some experts attributing this growth to “FOMO” (fear of missing out). Trump has confirmed his plan to create a US bitcoin reserve, citing the need for the country to be ahead of other nations in embracing cryptocurrency.
Source: https://www.forbes.com/sites/digital-assets/2024/12/14/trump-confirms-bitcoin-reserve-plans-15-trillion-price-boom-predicted