Since President-elect Donald Trump raised the possibility of establishing a US Bitcoin Strategic Reserve, many advocates have pushed for the creation of the crypto stockpile, saying that it would make the country as the leader in the global cryptocurrency landscape.

However, not everyone in the crypto community is convinced of the feasibility of the crypto reserve.

CryptoQuant CEO Ki Young Ju is pessimistic that the prospect of the Bitcoin Strategic Reserve would get an approval from the incoming administration.

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BTC Reserve Doubtful

Young Ju is not convinced that the proposed Bitcoin reserve would push through, saying it is unlikely that Trump would embrace the crypto strategy to protect US dollar dominance because the greenback remains a safe haven currency.

Throughout history, whenever the United States perceived a threat to its dominance in the global economy, gold prices surged, and debates around the gold standard gained traction.

In the late 1990s, Peter Schiff championed gold as the true form of money, much like today’s…

— Ki Young Ju (@ki_young_ju) December 28, 2024

The executive of CryptoQuant thinks that the policies of the new government would be much influenced by the apparent strength of the US economy and the predominance of the American currency in international trade.

Young Ju said that if there is a perceived threat to the US economic hegemony, gold, Bitcoin or any other store-of-value assets would experience a surge in its price.

US Economy Still Dominates

Young Ju argued that there is no perceived threat to American dominance since many investors still have great confidence in the US economy or the US dollar.

“I personally support the idea of #Bitcoin Standard. However, I question whether the US, while continuing to grow as other economies stagnate, would adopt Bitcoin as a strategic asset,” he said in a post.

The crypto executive believes the debate on the Bitcoin reserve would only gain serious momentum if the country’s global economic dominance is “genuinely threatened,” adding, “At present, market sentiment suggests confidence in the US’ continued supremacy.”

The US processed 37.8% of the world’s Bitcoin in 2022, making it the leader in crypto mining, according to government data.

Crypto Stance Could Shift

Young Ju said that it is possible that Trump’s stance on Bitcoin may take an unexpected turn depending on the broader political landscape.

“If Trump succeeds in showcasing US economic resilience, reinforcing the dollar’s supremacy, and boosting his approval ratings, it’s unclear if he would maintain the strong pro-Bitcoin stance he demonstrated during his campaign,” he explained in a post.

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The CryptoQuant CEO suggested that more likely, Trump would “step back from his Bitcoin advocacy,” pointing out that he might cite that there has been a change in priorities, “without alienating his voter base.”

“At the BTC Conference, was his mention of Bitcoin as a strategic asset a genuine step toward preparing for a Bitcoin Standard, or merely a calculated move to secure votes?” he said.

For the crypto executive, it is still unsure which of Trump’s “campaign rhetoric on Bitcoin” will be fulfilled.

Featured image from Pexels, chart from TradingView

Japan-based early-stage investment firm Metaplanet continues its Bitcoin (BTC) buying spree. The company announced today that it has purchased 619.7 BTC for $61 million – including fees and other expenses – making it the firm’s largest Bitcoin acquisition to date.

Metaplanet Increases BTC Holdings To 1,762

The recent crypto market downturn from its all-time highs (ATH) does not appear to bother Metaplanet, as the Tokyo-listed firm made its largest BTC purchase to date, buying 619.7 BTC worth $ 61 million at an average price of around $96,000.

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To recall, Metaplanet started buying BTC earlier this year in May with a purchase of 97.9 BTC. Since then, the company has purchased BTC every month, barring September, and crossed the 1,000 BTC milestone in November. The latest acquisition has pushed Metaplanet’s total Bitcoin holdings to 1,762, bought at an average price of $75,600 per BTC.

Notably, this $61 million purchase is nearly double the value of Metaplanet’s previous largest acquisition, which occurred in November and was worth close to $30 million. The company’s consistent BTC accumulation has earned it the nickname “Asia’s MicroStrategy,” in reference to the US-based business intelligence firm known for its aggressive Bitcoin buying strategy.

It is worth highlighting that today’s BTC purchase comes a week after Metaplanet raised $60.6 million through two tranches of bond issuance for the purpose of “accelerating BTC purchases.” Metaplanet’s latest purchase also makes its BTC reserves the 12th-largest among publicly listed firms globally.

According to Metaplanet’s official announcement, its BTC Yield – a proprietary metric used to measure the performance of its Bitcoin acquisition strategy – stood at 310% from October 1 to December 23. The firm emphasized that this strategy is designed to be “accretive to shareholders.”

Despite today’s significant BTC purchase, Metaplanet’s stock price saw little movement, closing at $22.5, down 0.98% for the day. However, on a year-to-date basis, the company’s stock has surged by an astounding 1,982%, reflecting the long-term benefits of its Bitcoin-centric strategy.

Bitcoin Supply Crunch To Hasten Adoption?

With Bitcoin’s total maximum supply capped at 21 million, the digital asset has solidified its reputation as an inflation-resistant store of value. A recent report highlights that BTC supply on crypto exchanges has hit multi-year lows, indicating that holders are increasingly withdrawing BTC from exchanges, reducing circulating supply and potentially driving prices higher.

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Bitcoin’s scarcity has triggered an unofficial race among corporations – and possibly even governments. For instance, Bitcoin mining firm Hut 8 recently purchased 990 BTC for $100 million, increasing its total holdings to over 10,000 BTC. Similarly, MARA, another Bitcoin mining company, acquired 703 BTC earlier this month, bringing its total holdings to 34,794 BTC.

Speculations surrounding a potential US strategic Bitcoin reserve are further strengthening BTC’s supply crunch narrative, which may fast-track its adoption. At press time, BTC trades at $94,003, down 1.5% in the past 24 hours.

Featured image from Unsplash, charts from Yahoo! Finance and Tradingview.com

Bitcoin (BTC) fell to $94,500 yesterday after Microsoft shareholders decisively rejected a Bitcoin treasury proposal to allocate 1% of the company’s total assets to buy BTC as an inflation hedge. However, analysts are still confident of further appreciation of the BTC price.

Bitcoin May Surge As High As $275,000

According to data from Coinglass, over $478 million worth of contracts – primarily long positions – were liquidated in the past 24 hours following the plunge in BTC and other cryptocurrencies. Interestingly, liquidation volumes were higher in altcoins compared to Bitcoin.

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However, some analysts view this price dip as a buying opportunity. Seasoned crypto analyst Ali Martinez took to X to highlight a long cup and handle pattern forming on Bitcoin’s weekly chart.

For those unfamiliar, the cup and handle pattern is a bullish technical formation that resembles a rounded “cup” followed by a brief consolidation period or “handle.” It typically signals the potential for a continuation of an uptrend, often leading to significant price gains.

Martinez noted that the pattern suggests Bitcoin could surge as high as $275,000, based on its technical structure. However, he also urged traders to exercise caution and avoid overleveraging their positions.

On the other hand, prominent crypto analyst @Trader_XO warned that Bitcoin must maintain its support at $90,000 to avoid further downside. Should BTC lose this critical level, it could drop as low as $85,000. Conversely, holding above $90,000 would allow the cryptocurrency to rebound and resume its uptrend.

BTC Takes Another Jab At Breaking Through $100,000

Despite yesterday’s dip, Bitcoin recovered swiftly, trading near $100,000 at the time of writing. The flagship cryptocurrency has remained in an overall uptrend, likely bolstered by today’s US inflation data for November, which largely aligned with market expectations.

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Bitcoin recently hit a new all-time high (ATH) of $103,679, according to data from CoinGecko. However, its price has fluctuated above and below the pivotal $100,000 mark, leading to over $1.5 billion in liquidations in the past week.

Several factors could drive Bitcoin’s price to a new ATH. For instance, BTC reserves on cryptocurrency exchanges have hit multi-year lows, reflecting rising demand for the digital asset.

American financier and former investment banker Anthony Scaramucci recently predicted China might establish its own Bitcoin reserve if the US proceeds with its strategic Bitcoin reserve plans. National BTC reserves are expected to reinforce Bitcoin’s supply scarcity narrative, potentially driving prices higher.

At the same time, BTC adoption among corporations continues to rise, as Canadian video-sharing firm Rumble became the latest company to unveil a BTC treasury strategy. BTC trades at $100,453 at press time, up 4.1% in the past 24 hours.

Featured image from Unsplash, Charts from X and TradingView.com