Key Insights
- Several states are joining the march for a state-level strategic Bitcoin reserve.
- New Hampshire lawmaker Keith Ammon recently proposed a Bitcoin strategic reserve bill awaiting a final decision.
- The same has happened in North Dakota, where a similar bill has already received 11 sponsors.
- CoinShares believes that a strategic Bitcoin reserve in the U.S. could drive adoption and push prices toward $1 million per BTC.
- The approval of these bills could trigger a race among countries and push prices further up.
According to reports, The U.S. is taking serious steps toward Crypto adoption.
States like New Hampshire and North Dakota have now introduced bills to establish state-level Bitcoin reserves.
These developments show lawmakers’ growing interest in diversifying state treasuries with digital assets.
And Bitcoin is on everyone’s mind.
New Hampshire Introducing “Digital Assets” Legislation
New Hampshire recently took a nuanced approach to this Bitcoin reserve.
The bill in question was introduced by Representative Keith Ammon, who explicitly avoided mentioning Bitcoin by name.
Instead, Ammon used the term “digital assets,” which CEO of the Satoshi Action Fund Dennis Porter has hailed as “strategic language” that helps reduce political friction while maintaining the intent to include Bitcoin.
“The intent is for Bitcoin, but oftentimes that’s not possible depending on the state,” Porter tweeted.
New Hampshire’s careful approach is perfect for creating the pathway to adopting Bitcoin without alienating stakeholders who might not like the direct mention of any one cryptocurrency.
This tactic also aligns with a broader trend of lawmakers carefully navigating the issue of Crypto and Crypto laws.
North Dakota Has 11 Sponsors on Board
On the same day as New Hampshire’s bill floated, North Dakota introduced its bill advocating for a Bitcoin reserve.
This bill already has 11 sponsors and was spearheaded by Representative Nathan Toman, Representative Josh Christy, and Senator Jeff Barta.
This shows that a growing number of lawmakers are beginning to consider Bitcoin as a strategic asset.
These efforts are similar to another initiative in Pennsylvania, where the state’s House of Representatives introduced a bill for a Bitcoin reserve in November. According to representative Mike Cabell (a proponent of the proposal), Bitcoin plays a pivotal role as a hedge against inflation and economic instability.
The Bitcoin Act and Federal-Level Momentum
The Bitcoin Act has also become a topic of discussion at the federal level.
This bill, proposed in July 2024 by Senator Cynthia Lummis, seeks to direct the U.S. Treasury Department to purchase 1 million BTC over five years.
According to Lummis, this would create a national Bitcoin reserve that would help settle some of the country’s debt over the next two decades.
The bill is supported by President-elect Donald Trump, who has promised to make the United States the global leader in Crypto and bitcoin adoption.
However, despite this endorsement, the act hasn’t been passed into law yet.
So far, industry leaders seem divided on the chances of success, with Strike CEO Jack Mallers predicting that Trump could implement the reserve via executive order on “day one” of his presidency.
However, skeptics like Galaxy Digital’s Mike Novogratz argue that such a reserve is unlikely to materialize.
What Will Happen If This Bill Passes?
This bill passing at the federal and state levels could have serious implications for Bitcoin’s adoption.
According to insights from CoinShares in a recent analysis, if this Bitcoin Act becomes established, it could drive Bitcoin’s price past $1 million per coin.
The asset analytics platform mentioned that it believes this move would boost Bitcoin’s credibility as an asset class.
It could also reduce the stigma faced by institutional investors.
“Passing the Bitcoin Act would grant Bitcoin the endorsement of the world’s largest government, accelerating its adoption,” the firm stated.
In essence, such an endorsement could create a ripple effect that encourages other world governments to do the same.
Institutional investment will skyrocket when countries like China, Russia, Singapore, Japan, and many others begin to stack up the cryptocurrency.
The Role of Bitcoin ETFs
The push for the Bitcoin strategic reserve coincides with the surge in interest from institutional investors.
After the 11 spot Bitcoin ETFs were approved in the U.S. in January of last year, the funds had raked in more than $100 billion in net assets by November.
Analysts expect that an additional net inflow of $48 billion will trickle into the Bitcoin ETFs through 2025.
This demand shock could further increase Bitcoin’s price to brand-new highs.
According to Adam Back, the co-founder and CEO of Blockstream, passing the Bitcoin Act would amplify these effects.
It could also push Bitcoin’s price past $1 million.
He added that such a development could create a significant flow of assets into Bitcoin, especially if other governments follow suit.
Challenges and Skepticism
While the momentum for the Bitcoin reserves is growing, there are still a few challenges.
Some of these include politics and varying levels of understanding about Bitcoin among lawmakers—all of which could slow progress.
Additionally, PolyMarket odds place a modest but encouraging 40% chance of Trump establishing a Bitcoin reserve within his first year in office.
Despite these hurdles, lawmakers’ efforts in states like New Hampshire and North Dakota show that the bills are gaining momentum.
Governments are slowly but surely changing their views of Bitcoin, and these initiatives show a growing willingness to explore the cryptocurrency’s potential as a hedge against economic risks.
A Turning Point for Bitcoin Adoption?
The introduction of Bitcoin reserve legislation at state and federal levels could mark a significant milestone in cryptocurrency’s journey toward mainstream adoption.
Whether the bills are successfully passed, Bitcoin continues to gain recognition as a valid financial asset.
Institutional inflows continue to surge, and governments continue to show more interest.
Bitcoin’s role in the global financial landscape will undoubtedly expand in the coming years.
Price Analysis—Can Bitcoin Really Hit $1 Million?
Most industry experts believe that a $1 million Bitcoin price is achievable within the next decade.
One of these is Ark Invest CEO Cathie Wood, who recently doubled down on her prediction that Bitcoin would reach a price of $1 million by 2030.
Interestingly, this prediction came long before Bitcoin hit the $100,000 mark.
On the small-scale timeframe, however, Bitcoin is currently facing a slight consolidation after breaking below the ascending channel illustrated:
As shown, the bulls are attempting to prevent the cryptocurrency from breaking below the $92,000 zone, where the bears are likely waiting to drive prices lower.
According to analysts like Ali Martinez, if the cryptocurrency is unable to sustain itself above the $90,000 zone, the risk of a crash towards $80,000 or lower remains a valid one.
The weekly chart offers a certain degree of comfort though, with the multi-year uptrend remaining intact for the cryptocurrency as shown.
This chart pattern shows that despite the risks of possible corrections, Bitcoin remains bullish overall and could indeed hit this $1 million mark under the right macroeconomic conditions.
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