🔵 #Can BTC Break $110K?#
Bitcoin recently broke above $107,000 and is currently trading around $105,000, just shy of its all-time high at $109,580. Do you think Bitcoin can set a new record and push past $110,000? Share your analysis and predictions with us!
🔵 #AI Token Market Cap Rebounds#
According to CoinGecko, the total market cap of the AI agent sector has rebounded to $6.862 billion, with a 1.2% increase in the past 24 hours. Notably, VIRTUAL surged 18.5%, and AI16Z rose 7.1%. Which AI tokens are you bullish on? How are you planning your portfolio strategy? Let’s hear your thoughts!
US Congressman Recommends Selling Fed Gold for Strategic Reserve of 1 Million BTC
US President-elect Trump shouted before the election that he wanted to include BTC in the national strategic reserve, and Republican Senator Cynthia Lummis, who is considered an ally of Trump, plans to promote a bill in the new Congress next year to establish a reserve of 1 million BTC for the United States. She recently suggested that this could be achieved by selling part of the Federal Reserve's gold reserves. (Background: Pennsylvania proposes 'BTC strategic reserve' bill: expected to invest billions of dollars in BTC hoarding) Cynthia Lummis, a Republican senator considered an ally of Trump, plans to promote a BTC strategic reserve bill after taking office in the new Congress next year, allowing the United States to establish a reserve of 1 million BTC, which is about 5% of the current supply of BTC. At the current market price, the purchase will require about $90 billion. If the bill is passed, the cost for investors to purchase BTC may be even higher. Lummis urges selling gold for BTC However, Cynthia Lummis recently suggested that it is possible to establish a reserve of 1 million BTC by selling part of the Federal Reserve's gold reserves without increasing the government's deficit. She mentioned that the United States already has financial assets convertible into BTC, namely gold certificates, which have a neutral impact on the US balance sheet. Trump, before the election, announced plans to establish a national strategic reserve of BTC based on the government's confiscation of 200,000 BTC. Cynthia Lummis's proposal will further strengthen the BTC strategic reserve. According to her bill, BTC must be held for at least 20 years, and its value growth is assumed to help reduce national debt. However, even if Trump takes office, and with the most friendly Congress ever to Cryptocurrency about to take office, some market observers still believe that the proposal will face significant challenges. Polymarket shows a 30% probability of Trump establishing a BTC reserve. In theory, the Federal Reserve has enough gold reserves to buy 1 million BTC and still retain a large amount of gold. According to the Federal Reserve's balance sheet, the Treasury currently holds gold certificates worth about $11 billion based on the fixed so-called statutory price of $42.2222 per ounce since 1973. Converted at the Spot gold price, this batch of gold reserves is worth about $675 billion. However, if the government were to sell large amounts of gold, it could depress the market price. Debate over the establishment of a BTC strategic reserve It is worth noting that there has been a debate over the pros and cons of the US establishing a BTC strategic reserve. Galaxy Digital founder Michael Novogratz believes that the likelihood of the United States establishing a BTC strategic reserve is low, but if it does happen, the price of BTC will rise to $500,000, as other countries may follow suit and feel the need to establish similar reserves. MicroStrategy founder Michael Saylor recently stated that the establishment of a BTC strategic reserve is imperative and similar to past acquisitions of gold and land. He is optimistic that Cynthia Lummis's proposed bill to establish a reserve of 1 million BTC will pass and described it as the greatest transaction of the 21st century. However, Christian Catalini, co-founder and chief strategist of Lightspark and founder of the MIT Encryption Economics Laboratory, expressed opposition in a recent article, arguing that if Trump implements a BTC reserve strategy and dismisses Federal Reserve Chairman Powell, it could mean the end of the US Federal Reserve System's leadership in global monetary policy. In Christian Catalini's view, in the worst-case scenario, the establishment of a BTC strategic reserve would raise doubts about the US dollar and its sustainable debt repayment ability, which would be a strategic mistake and a gift to Russia and China, who have long sought to weaken the global dominance of the US dollar. Issuance of reserve currencies is a form of 'excessive privilege', and losing this position would mark the end of the United States' status as a global superpower.