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Bitcoin (BTC) rises above $100,000 again due to Trump’s SBR plans

Market sentiment towards BTC demand remained positive on Sunday, with BTC closing above $100,000 for the first time. Market optimism improved as investors anticipated Trump’s appointment as crypto-friendly CFTC chairman and discussions about BTC becoming a US strategic reserve asset (SBR).

SEC and CFTC leaders must set clear regulatory guidelines to help BTC become a US Strategic Reserve Asset (SBR).

BTC demand could surge if Congress, the Federal Reserve, the Treasury Department, and the President approve BTC as a strategic reserve asset.

The US government would also retain its supply of 198,109 BTC, equivalent to $19.73 billion, to mitigate the risk of oversupply.

Founder and CEO of MicroStrategy offers strategic BTC move

On Saturday, MicroStrategy (MSTR) founder and chairman Michael Saylor called on the US government to exchange US gold reserves for BTC, saying:

“BTC is becoming the global reserve capital network. People are realizing that BTC is better than real estate. It’s better than stocks. There is not a single company or property you would rather own long-term than BTC.”

Saylor added:

“If you want to put a great twist on it, sell off your gold, sell all of the US gold and buy BTC, then trading is free because you can buy five million BTC for the price of gold.” You would buy the entire gold asset class demonetize, and our enemies keep gold in their banks. So your assets would go to zero, our assets would be $100 trillion, and we would control the global reserve capital network as well as the global reserve currency network.

Saylor’s comments align with Senator Cynthia Lummis’ recent call to sell gold to acquire BTC as SBR. Senator Lummis said the exchange would allow the US government to increase its BTC holdings without increasing the US government’s deficit.

Amicus Curiae Attorney John E. Deaton noted Charles Schwab’s new CEO’s views on SBR and BTC price trends, stating:

“The new president, along with almost his entire government, is talking about an SBR (BTC strategic reserve) (…). Even the CEO of Charles Schwab (who doesn’t own Bitcoin and now feels silly for not buying it) recently said that Bitcoin would rise to $500,000 to $1 million in the event of an SBR.”

Bitcoin price outlook

On Sunday, BTC gained 1.32% after rising 0.03% on Saturday to close at $101,044. Significantly, BTC ended the session above the $100,000 mark for the first time.

Short-term BTC price trends will depend on US BTC spot ETF market flows and the nomination of Trump’s Commodity Futures Trading Commission (CFTC) as chairman. A pro-cryptocurrency CFTC chairman could fuel speculation about BTC becoming a US strategic reserve asset. Rising demand for US BTC spot ETFs could also push BTC higher.

However, in the short term, investors should keep an eye on possible oversupply signals. Mt. Gox and the US government could potentially influence BTC trends through transfers to new wallets.

Mt.Gox currently holds 36,085 BTC, equivalent to $3.61 billion, to return to investors. Mt. Gox collapsed in February 2014 when BTC was below $600. The crypto community expects creditors to cash out significant profits after cashing out in BTC.