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Senator Cynthia Lummis Proposes Bitcoin Solution As US Debt Hits $35 Tln

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3 months ago

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As the United States’ national debt reaches a record $35 trillion, Senator Cynthia Lummis of Wyoming has introduced a groundbreaking proposal.

She presented a bill in the Bitcoin 2024 conference held in Washington, D.C. to address the mounting national debt by leveraging Bitcoin. The suggested legislation is about establishing a strategic reserve of Bitcoins that can be used as a backing for the US dollar, making it stronger globally.

Senator Cynthia Lummis Bitcoin Solution

The United States’ national debt has hit an all-time high of 35 trillion dollars. Just days ago as reported by Coingape, Senator Cynthia Lummis brought forward an innovative idea concerning creating strategic Bitcoin reserves. 

According to the newly unveiled bill at the conference Bitcoin 2024, its objective is to protect the dollar’s place as a world currency and strengthen the American economic condition through the inclusion of this cryptocurrency as financial asset.

Concurrently, as per Senator Cynthia Lummis proposal, there are some plans to create a decentralized network of secure bitcoin vaults, all under the management of the US Department of Treasury. The first step involves buying one million bitcoins, which represents about 5% of all bitcoins available worldwide, and using them as state reserves taken from existing reserves within the Federal Reserve System and Treasury Department.

Senator Cynthia Lummis argues that one must use every tool available in order to deal with ever increasing inflation rates and cost of living across the country.

Addressing US Debt Hits $35 Trillion

The United States’ national debt has reached an all-time high of $35 trillion, highlighting severe fiscal challenges. According to the Treasury Department, this is due to federal program costs that have grown faster than expected. High interest rates have been an issue that has affected the country’s debt management and financial stability.

Subsequently, the Treasury borrowed $234 billion between April and June, which was less than expected. However, it anticipates to borrow $740 billion from July to September. Projections suggest annual interest costs could soar to $1.7 trillion by 2034. 

This financial burden highlights the need for finding new ideas, like the one suggested by Senator Cynthia Lummis to use Bitcoin as a strategic reserve asset to support the economy.

Donald Trump and Robert F. Kennedy Backing Bitcoin

During the Bitcoin 2024 Conference former President of the United States of America, Donald Trump, and the Independent presidential candidate Robert F. Kennedy J. endorsed Bitcoin. Trump proposed that the U.S. should continue to hold the existing bitcoins and use them as a basis to establish a national currency.

Trump noted that Bitcoin has the potential to become a national asset that would be useful for every citizen aligning with Senator Cynthia Lummis’s bill.

Kennedy also said that if he were to be elected, he would incorporate the use of Bitcoin into the economy of the United States of America.  Thus, the endorsements of Trump and Kennedy demonstrate that there is a increasing bipartisan understanding of the possibilities that Bitcoin offers for solving economic problems.

Analysts Back Senator Cynthia Lummis

Some of the financial analysts and market experts had earlier recommended Bitcoin as the solution backing Senator Cynthia Lummi. Peter Brandt, a market analyst, had previously forecasted the decline of the US dollar, which is in line with the worries over the use of paper currency in the future. As a result, Brandt and other financial experts believe that Bitcoin is a suitable store of value in light of the declining dollar.

Elon Musk and Robert Kiyosaki have also endorsed Bitcoin as a hedge against the current financial system. Commenting on the matter, Jan van Eck, the CEO of VanEck, discussed Bitcoin’s characteristics and compared them to gold, thus strengthening the cryptocurrency’s position as a digital asset aligning with Senator Cynthia Lummis.

However, there is increasing concern regarding the U. S. government’s management of its Bitcoin assets. As per a Coingape report, the government moved more than $2 billion worth of Bitcoin which was confiscated from the Silk Road marketplace. This action is quite the opposite of what Trump has said in the past about the U. S. never selling its Bitcoin.

Read Also: Coinbase Deal Likely Behind US Govt’s $2B BTC Transfer: Bloomberg Analyst

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Kelvin is a distinguished writer specializing in crypto and finance, backed by a Bachelor’s in Actuarial Science. Recognized for incisive analysis and insightful content, he has an adept command of English and excels at thorough research and timely delivery.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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US CPI, Fed Powell Speech Among 5 Key Crypto Events To Watch This Week

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1 hour ago

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November 10, 2024

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The crypto market eagerly awaits the US CPI inflation data this week, which is likely to decide the future path of the Federal Reserve’s monetary policy plans. Besides, a flurry of other key events, including Fed Chair Jerome Powell’s speech is also scheduled later this week. Notably, this comes a week after the US FOMC decided to cut interest rates for the second time this year.

US CPI, Fed Chair Powell Speech, And Other Events To Watch This Week

The US CPI is one of the most awaited events for this week, as it would shed light on the inflationary pressure on the nation. Besides, speculations also soared as the US Fed announced a 25 bps rate cut at last week’s FOMC, with many expecting a similar cut in December. According to CME FedWatch Tool data, there is about a 65% probability of the Fed announcing another quarter-basis rate cut next month.

In addition, the US PPI inflation data is also scheduled for next week, which would further provide cues on the country’s economic health. However, it’s worth noting that this set of inflation figures is likely to set the path for future Fed rate cuts despite the market anticipation over a 25 bps point cut again in December.

The recent Jerome Powell speech from last week was closely watched by the investors. Following last week’s US FOMC, the Fed Chair said that the central bank’s monetary stimulus remains restrictive while saying that the bank should maintain “an appropriate recalibration” of its policy plans.

Having said that, the market will closely watch this week’s speech of Fed President Jerome Powell. If Powell indicates any future hawkish move in this week’s speech, scheduled for November 14, it could significantly impact the market sentiment.

Monthly US Federal Budget And Fed Officials Speeches In Focus

Apart from the above-mentioned developments, the market will also keep a close track of other Fed official’s comments for clarity on the Central Bank’s future moves. On Tuesday, Fed Governor Christopher Waller, Richmond Fed President Tom Barkin, and Philadelphia President Patrick Harker are scheduled to speak.

Following that, the Dallas Fed President and St. Louis Fed President will speak just after the US CPI inflation release. Their comments will be closely watched by the traders who are seeking clarity on the potential impact of inflation on the central bank’s future decisions.

In addition, the weekly initial jobless claims are expected also scheduled for Thursday, which will shed light on the Labor market health in the US. Having said that, the market will keep a close track of these events, especially after a strong rally in the crypto market last week.

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Rupam Roy

Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam’s expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news.
Rupam’s career is characterized by a deep passion for unraveling the complexities of finance and delivering impactful stories that resonate with a diverse audience.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Cardano Founder Charles Hoskinson Confirms Crypto Advisor Role Under Donald Trump

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3 hours ago

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November 10, 2024

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Cardano Founder Charles Hoskinson has confirmed plans to collaborate with the U.S. government under Donald Trump to help shape crypto legislation. The goal is to create clear regulatory frameworks for the cryptocurrency industry, which has faced years of uncertainty and regulatory challenges.

Charles Hoskinson revealed these plans during a recent address, where he emphasized the need for bipartisan support in developing crypto-friendly policies. This development comes as Cardano, along with other major blockchain networks like Bitcoin, faces ongoing regulatory scrutiny from U.S. agencies.

Cardano Founder Charles Hoskinson Crypto Advisor Role

Hoskinson stated that his company, Input Output Global (IOG), will establish a dedicated policy office to focus on crypto regulation. The office will work to integrate aspects of the Financial Innovation and Technology for the 21st Century Act (FIT21) and the Responsible Financial Innovation Act (RFIA) into a comprehensive legislative proposal. “I will work with lawmakers and the administration to get a bipartisan bill passed,” he said.

The Cardano founder highlighted the importance of cooperation across party lines, pointing out that the recent FIT21 bill passed in the House with over 60 Democrat votes, indicating growing support for bipartisan crypto legislation.

Charles Hoskinson’s statement also acknowledged the potential influence of a Republican-controlled Senate, House, and presidency in the coming years. He expressed optimism that the political environment could present an opportunity for the crypto industry to secure much-needed regulatory clarity. He remarked,

“This is the best opportunity we have ever had in the history of the industry to get clarity.”

This Is A Breaking News, Please Check Back For More

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Jupiter Price Rallies 29%, Is $1.8 Next For JUP?

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5 hours ago

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November 9, 2024

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The recent rally in Jupiter price (JUP) has gained substantial attention in the cryptocurrency market, as the token climbed 29% within a week to reach $1.20. This sharp increase has raised questions about the potential for continued upward momentum, with indicators suggesting that further growth could push JUP Price towards the $1.8 mark.

Jupiter Price Gains 29% in One Week as Key Indicators Point to Possible $1.8 Rally

Recent data in the cryptocurrency market shows that Jupiter price surged by 29% in the past week, reaching the $1.20 level. This notable rally in a short period reflects heightened interest in the token, driving strong buying pressure in the market. Analysts have pointed to several factors contributing to this price rise, including positive technical indicators and a shift in market sentiment favoring JUP.

One of the prominent indicators supporting the Jupiter price rally is the consistent inflow of funds into JUP. The spot inflow and outflow chart reveals a trend of net inflows, indicating that investors are accumulating JUP tokens in anticipation of future gains. This accumulation phase suggests a bullish sentiment. With market participants actively buying and holding JUP, the price draws closer to the $ 1.8 mark.

Source: CoinglassSource: Coinglass
Source: Coinglass

Technical Indicators Show Sustained Bullish Momentum

The MACD (Moving Average Convergence Divergence) indicator on Jupiter (JUP) price chart also shows a bullish crossover, with the MACD line crossing above the Signal line. This formation, often called a “Golden Cross,” suggests a potential uptrend continuation in the market. 

Additionally, the MACD histogram, which represents the difference between the MACD line and the Signal line, shows green bars. This confirms the strengthening bullish momentum. The histogram bars are increasing, signaling that buying pressure is building up as the gap between the MACD and Signal line widens.

Source: TradingViewSource: TradingView
Source: TradingView

More so, the RSI for Jupiter has reached 70, indicating overbought conditions. While an overbought RSI typically signals a potential pullback, strong bullish trends can sustain these levels for extended periods. The continued upward momentum suggests that the cryptocurrency could test higher resistance levels if momentum persists.

Concurrently, JUP price rally is further reinforced by growing open interest in the futures market. Open interest represents the total value of active contracts and has shown a steady increase since early September. The rise in open interest alongside the price surge indicates confidence in sustained price growth.

Source: CoinglassSource: Coinglass
Source: Coinglass

Notably, a higher open interest in JUP futures reflects new capital entering the market, which is a bullish signal for Jupiter price. The growing interest from futures traders aligns with the accumulation trend in the spot market. This shows that both retail and institutional investors are preparing for further market gains.

At press time, Jupiter cryptocurrency market data shows high trading volume, with a 24-hour volume of over $308 million and a price surge of 10% in the last 24 hours. Elevated trading volume indicates strong demand and participation, validating the recent price movements. 

The increase in volume has contributed to the price rally, pushing its market cap to $1.63 billion. This robust trading volume further strengthens the outlook for JUP with $1.8 as a possible target if demand remains high.

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Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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