Soaring Bitcoin value eclipses €100,000 milestone
The world of cryptocurrency is abuzz with the growing trend of governments establishing strategic Bitcoin reserves. This shift, spearheaded by the United States, is gaining momentum as more nations join the bandwagon.
In a move that could reshape the financial landscape, US President Donald Trump issued a decree in March, allowing for the accumulation of Bitcoin without incurring costs for taxpayers. This decision, coupled with the Federal Reserve's monetary easing, has contributed to the recent surge in Bitcoin's price.
The all-time high of $124,533 USD, reached in August, seems within reach again. The Treasury Department is determined to find budget-neutral ways to acquire more Bitcoin, a move that is likely to be bolstered by the end of Fed Chair Jerome Powell's term in May 2026, with a new chairman expected to support a more accommodative monetary policy.
The US isn't alone in this venture. Countries such as the United Arab Emirates, Kazakhstan, Pakistan, El Salvador, Kyrgyzstan, and the Kingdom of Bhutan are either establishing or expanding their own Bitcoin reserves. Notably, Kyrgyzstan has submitted a bill to create a state crypto reserve, while Kazakhstan plans to build a national crypto reserve fund under its central bank by 2026.
Indonesia is also in discussions with government representatives on how a Bitcoin reserve strategy could boost its economy, and the Philippines has introduced a strategic law to build a Bitcoin reserve of 10,000 BTC. Senator Cynthia Lummis has even proposed the "BITCOIN Act of 2025" which aims to increase the US Bitcoin reserve to 1 million BTC, an idea that has found support from both Trump and Treasury Secretary Scott Bessent.
Michael Saylor, founder of Strategy, shares this optimistic view, believing that Bitcoin is here to stay and its price is likely to stabilize at a much higher level in the future. He also believes that Bitcoin has overcome its riskiest phase, and typical corrections of 70% or more are a thing of the past.
Tristan, Editor-in-Chief at Blocktrainer.de, echoes these sentiments. With a degree in economics and journalistic experience outside the Bitcoin sphere, Tristan has been actively involved with Bitcoin since 2020, having previously explored libertarian economic theory.
As of today, Bitcoin has reclaimed the $100,000 mark, both in US dollars and euros, a testament to the growing confidence in this digital currency. However, concerns about the escalating US government debt persist, raising questions about the sustainability of this trend.
In the face of these developments, it seems that Bitcoin is poised to play an increasingly significant role in the global financial system. As more governments embrace this digital currency, it will be interesting to see how this trend unfolds in the coming years.
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