The recent bearish trend in the crypto markets may soon turn around, thanks to the latest legislative news. The recently proposed Bitcoin Reserve bill has the potential to radically boost crypto prices by allocating funds for the purchase of 1 million Bitcoin.
In a coordinated legislative push, Republican Congressmen and Senators are proposing legislation that would fundamentally impact crypto markets. On Tuesday, March 11, Senator Cynthia Lummis reintroduced her Bitcoin Act to the US Senate. The same day, Congressman Nick Begic introduced the same bill to the House.
The landmark bill would require the US Government to purchase 1 million Bitcoins over 5 years. Due to the sheer volume of the sale, this has the potential to significantly boost crypto markets. At current prices, 1 million Bitcoins is worth $83 billion.
Even at today’s prices, this figure dwarfs the value of its strategic oil reserves. For instance, the US currently holds a total of 395.6 million barrels in reserves, worth about $20 billion. Still, the country’s gold reserves are worth significantly more, with a real value of $749 billion.
What Bitcoin Reserve Means for Crypto Markets
The move would significantly affect Bitcoin’s price, which is something that Bitcoin’s biggest advocates are aware of. Following the legislative push, Strategy CEO Michael Saylor wrote on his X page, “Big things are coming.”
Currently the biggest holder of Bitcoin, Saylor’s Strategy owns “just” 499,096 Bitcoins. This is less than half of what the US Government would hold if the new bill passes. Moreover, judging by the past effects of Strategy’s Bitcoin purchases, the Bitcoin price will move significantly upward.
Currently, Bitcoin’s circulating supply is 19.8 million, and due to its issuance mechanism, the supply will never exceed 21 million. A purchase of about 5% of Bitcoins over five years would significantly impact the price.
Therefore, knowing how much the Bitcoin strategic reserve costs US taxpayers is impossible. Still, it is very unlikely that the Government would be able to purchase all 1 million Bitcoins at their current price. In that event, the Bitcoin price would likely see a major price increase, and with it, the overall crypto market as well.
READ MORE: Solana and XRP Prices to Rebound? Stocks Show Some Good Signs
