The cryptocurrency community is optimistic about the potential pro-cryptocurrency executive actions that President-elect Donald Trump could take on his first day in office. Speculations include the possibility of ‘pausing’ cryptocurrency-related lawsuits and establishing a Bitcoin[BTC] reserve (SBR).
The likelihood of a U.S. SBR surged to 44% on January 17th, as reports emerged suggesting that the president might create a ‘national stockpile of Bitcoin’ and prioritize cryptocurrency on a national level.
Bloomberg also reported that the incoming administration might form a cryptocurrency council to promote policies and interests in the sector.
Rumors indicate that these directives could be issued on the day of the presidential inauguration on January 20th. This led to a positive market reaction, with the SBR odds exceeding 44% for the first time in January. Currently, the chances stand at 41%.
On another forecasting platform, Kalshi, the probability of an SBR establishment this year has risen to 64%.
Notable Bitcoin enthusiasts, like crypto investor Fred Krueger, are confident that a U.S. SBR could be on the horizon by next week.
Polymarket’s odds have doubled in a fortnight, climbing from a low of 22% to a recent peak of 44%. Concurrently, BTC has surged from $90K to around $102K, underscoring the significant impact of SBR speculation on the cryptocurrency’s market value.
Remarks from U.S. Senator…
In a separate development, U.S. Senator Cynthia Lummis, a proponent of Bitcoin, raised concerns about the U.S. Government’s intentions to sell the 70K BTC seized from Silk Road. In a letter to the U.S. Marshals Service, she stated,
“Historical sales data shows that the Service has sold approximately 195,092 Bitcoin between 2014 and 2023, totaling around $366.6 million.”
The letter continued,
At current market rates, this Bitcoin would now be valued at over $18.9 billion, resulting in an unrealized loss of more than $18.5 billion for U.S. taxpayers—a substantial 98% loss in potential value.”
These Bitcoins were part of the assets earmarked by the incoming administration to establish the SBR. Data from Arkham revealed that 69,000 Silk Road BTC coins remain untouched despite approval for their sale.
Currently, the U.S. government holds 198K BTC, valued at over $20 billion, which could potentially be redirected towards an SBR if not liquidated before the new leadership takes office.