A Bitcoin-related bill is gaining support in the United States, signaling a potential boost for the cryptocurrency’s value, which could hit $1 million.
Former President Donald Trump’s victory in the 2024 presidential election on Nov. 5 has sparked optimism for more crypto-friendly policies.
One of the most anticipated bills is the Bitcoin Act, championed by Wyoming Republican Senator Cynthia Lummis, which proposes the creation of a strategic Bitcoin (BTC) reserve for the US, making it the first nation to use it as a “savings technology.”
The Bitcoin reserve proposal is gaining significant support thanks to Trump’s victory and the incoming Republican Party Senate majority, according to Anastasija Plotnikova, co-founder and CEO of Fideum.
The bipartisan support suggests the bill could be accepted during the next four years. “State-level momentum is building, with initiatives such as Pennsylvania’s Bitcoin Strategic Reserve Act serving as a model for broader adoption,” Plotnikova said.
”At the federal level, the US government’s existing Bitcoin holdings, valued at $18–19 billion, provide a strong foundation for implementing the reserve,” she added.
The bill is creating widespread excitement, as it could set up Bitcoin for an over $1 million valuation, according to Adam Back, co-founder and CEO of Blockstream, the inventor of Hashcash, and one of the most notable cryptographers in the industry.
A US strategic Bitcoin reserve act may pave the way for $1 million Bitcoin price
The potential of the world’s largest economy opening a Bitcoin reserve could push Bitcoin above the seven-figure mark as soon as this cycle, Back said in a Nov. 18 X post.
Back expects a rapid price increase since markets are currently not pricing in the likelihood of the reserve act.
Bitcoin price is currently flirting with the $100,000 mark, trading just 2% below the milestone high, changing hands above $98,000 as of 12:31 pm in UTC, Cointelegraph data shows.
The bill holds significant transformative potential from an economic perspective, as it could attract more institutional adopters, Fideum’s Plotnikova said. She added:
“Analysts suggest it could drive Bitcoin’s price toward $500,000 while attracting institutional investors like pension and sovereign wealth funds, further legitimizing Bitcoin as an asset class. The proposal also aligns with Trump’s vision of positioning the US as a global leader in crypto innovation.”
The bill has received support from several political figures, including Democratic Party Representative Ro Khanna.
Trump presidency could end the “war on crypto,” according to MicroStrategy’s Saylor
Others are also optimistic about the future of the crypto space during Trump’s presidency, including MicroStrategy’s Michael Saylor.
Trump’s presidency and a Republican senate could have significant positive implications for the crypto industry, including ending the “war on crypto,” accelerated institutional adoption, and a strategic Bitcoin reserve, among other benefits, Saylor shared in a Nov. 16 presentation.
Saylor also foresees other significant institutional milestones for Bitcoin, such as the creation of options on Bitcoin ETFs, approval of solicited sales by traditional banks and the acceptance of Bitcoin as a collateral asset.