Bitcoin (BTC) surged 5% late Sunday, setting a new all-time high of $106,500 before retreating slightly.
The Xmas rally is fueled by mounting speculation that Bitcoin could soon be recognized as a U.S. reserve asset, a narrative gaining traction among crypto enthusiasts and institutional investors.
Source: BNC Bitcoin Liquid Index
Strike CEO Jack Mallers suggested that U.S. President-elect Donald Trump might sign an executive order on Jan. 20, designating Bitcoin as a reserve asset. While the purchase wouldn’t involve “1 million coins,” Mallers hinted at a “significant position” being taken by the government.
This bold move could prompt a $20 billion BTC purchase by the Treasury in 2025, potentially transforming the cryptocurrency landscape and driving Bitcoin’s price to unprecedented heights.
States Pushing Bitcoin Reserve Bills
On the state level, Bitcoin adoption is also gathering steam. Dennis Porter, CEO of the Satoshi Action Fund, revealed that a third state is preparing a Bitcoin reserve bill, following in the footsteps of Texas and Pennsylvania.
“We’ve already seen Pennsylvania and Texas move forward, and another state has sent me a draft. I expect at least 10 states to propose similar legislation,” Porter said during a Dec. 15 X Spaces discussion.
Bitcoin’s continued rise comes amid expectations of a 0.25% interest rate cut from the U.S. Federal Reserve on Dec. 18. Analysts believe this dovish move could further propel Bitcoin’s price upward in the months ahead.
Additionally, the Financial Accounting Standards Board (FASB) has introduced a new rule allowing institutions to record crypto assets more accurately. Effective for fiscal years starting after Dec. 15, this change could encourage greater institutional participation.
As Bitcoin continues its bullish streak a Xmas rally seems likely. All eyes are on the potential macro and regulatory developments that could shape the next phase of its journey. Whether Bitcoin truly becomes a U.S. reserve asset remains speculative, but the momentum behind the digital asset shows no signs of slowing down.
