Expert Predicts Bitcoin Price Could Exceed $1 Million with US Reserve
Adam Back, CEO of Blockstream, suggested that Bitcoin could exceed $1 million if the US establishes a Strategic Bitcoin Reserve (SBR) under President-elect Donald Trump. He stated, “If the US Strategic Bitcoin Reserve happens, prepare for 7 figure bitcoin. This cycle. The market is skeptical on meaningful follow through for now, so that is not at all priced in.”
if the US Strategic Bitcoin Reserve happens prepare for 7 figure bitcoin. this cycle. the market is skeptical on meaningful follow through for now, so that is not at all priced in.
— Adam Back (@adam3us) November 18, 2024
Market Skepticism
The prediction has ignited discussions among industry experts. Analyst James Van Straten expressed doubt about Bitcoin reaching such heights, indicating a lack of mental preparedness even for six figures. Back acknowledged the skepticism, stating that the market does not currently believe in the likelihood of an SBR, but a realization of this proposal could lead to rapid price adjustments.
Portal, a custodyless interoperability protocol, noted that a US SBR could inspire other nations to adopt similar measures, highlighting the potential global impact on Bitcoin's valuation.
Critics like user AndyLiteMan dismissed Back’s prediction as unrealistic, while Back reiterated his conditional stance, emphasizing that market disbelief is evident.
Potential Executive Order and Legislative Efforts
Dennis Porter, CEO of the Satoshi Act Fund, reported that Trump's team is considering an executive order for a national SBR to preempt state-level legislation. Porter indicated that US Senate offices support this initiative, suggesting a competitive atmosphere surrounding Bitcoin policy.
It is essential to differentiate between proposals: Porter refers to a potential executive order, while Trump previously mentioned using seized coins for a reserve. Additionally, Republican Senator Cynthia Lummis has introduced the Bitcoin Act, advocating for the government to purchase 1 million BTC over five years. Back commented on the implications of these initiatives, emphasizing the logistical challenges in acquiring such a large amount of Bitcoin quietly to prevent market disruption.
As of now, BTC trades at $92,329.
