Bitcoin reserve bills spark speculation of global accumulation race
As Bitcoin reserve proposals grow in the United States, speculation is increasing about a potential global race to accumulate the cryptocurrency.
Kentucky recently became the 16th state to introduce legislation aimed at allocating up to 10% of excess state reserves into Bitcoin (CRYPTO:BTC).
This proposal is part of a growing trend, with Bitcoin increasingly being viewed as a mainstream reserve asset.
Isaac Joshua, CEO of the crypto platform Gems Launchpad, stated that such initiatives are pushing Bitcoin toward broader institutional and national-level adoption.
“If the Kentucky bill is approved, it may trigger a ‘global race’ to accumulate Bitcoin,” Joshua said.
The tipping point will be when one state formally adopts BTC in reserves. After that, it’s game on, most likely," he added.
Joshua added that the pressure would mount on other states to follow suit once a few commit to Bitcoin reserves.
Bitcoin has already seen significant institutional accumulation, with major asset management companies holding 5.91% of the total Bitcoin supply through U.S. Bitcoin exchange-traded funds (ETFs).
BlackRock’s Bitcoin ETF alone controls over 48.7% of the total holdings in U.S. spot Bitcoin ETFs, amounting to $55.3 billion.
Bitcoin ETFs’ influence is likely to continue pushing Bitcoin’s price upward, with U.S. Bitcoin ETFs accounting for 75% of new BTC investment in 2024.
However, regulatory challenges remain a concern, according to James Wo, CEO of venture capital firm DFG.
“The idea of an accumulation race is fascinating, but this bill is merely a proposal and has not yet been passed. Strict fiscal policies and concerns over Bitcoin’s volatility could pose challenges,” Wo explained.
Despite these challenges, more states are expected to introduce similar bills, potentially laying the groundwork for a future federal Bitcoin reserve.
Bitcoin’s volatility has been evident in past market corrections, such as the 64% drop in 2022 and a 73% retracement in 2018.
Despite this, Bitcoin has delivered over 1,077% returns in the past five years, making it an attractive long-term investment.
At the time of reporting, the Bitcoin (BTC) price was $96,013.19.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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