US Senator Cynthia Lummis of Wyoming is doubling down on her efforts to legitimize Bitcoin and possibly add this digital asset to the country’s reserves.

In a November 21st interview, Lummis suggested that the US Federal Reserve sell some of its gold reserves to invest in the crypto. The Wyoming senator shared that the proceeds from selling a portion of gold reserves, valued at 1970 prices, can boost the US dollar and reduce the country’s growing debt.

Lummis’ announcement comes as BTC hit another all-time high and nears the $100k milestone. By pursuing a Bitcoin policy, the Federal Reserve can also benefit from higher returns.

Bitcoin is a “gold standard in digital assets, and setting up a strategic reserve can help the country’s financial strategy.

Lummis Says A BTC Reserve Can Boost USD, Reduce Debt

Lummis is one of the most outspoken supporters of Bitcoin and cryptocurrencies and pushed for the Bitcoin bill in the Senate. As a long-time crypto holder and supporter, the senator admitted owning five BTCs and putting them in a trust.

The lawmaker said that the government can adopt this strategy, start a crypto reserve, and hold these assets for at least two decades.

Explained: 🇺🇸 The Strategic Bitcoin Reserve

Breaking down the BITCOIN act — the bill introduced by Senator @CynthiaMLummis

– Buy 1m BTC over five years
– HODL for 20 years
– Proof of Reserves
– Protect Bitcoin property rights

TL;DR: 🚀🚀🚀 pic.twitter.com/snnWP59FBc

— Julian Fahrer (@Julian__Fahrer) November 19, 2024

Lummis admitted that she met with incoming US President Donald Trump about the Bitcoin proposal. Under the newest Lummis plan, the gold certificates held at a dozen Federal Reserve banks can be converted to their current fair market value. The proceeds from the sale of the certificates, pegged at 1970s prices, can be used to buy BTC.

A Look At The Proposed US Bitcoin Reserve

The planned Bitcoin strategic fund combines some long-term investment phases carried out over several years. The Treasury purchases 200k Bitcoin yearly under the Bitcoin Act 2024 for five years with at least retaining the digital assets for 20 years.

BTCUSD trading at $97,500 on the daily chart: TradingView.com

To ensure fairness and transparency, the government shall implement a Proof of Reserve System, where the government will publish audited quarterly reports. If other agencies have BTC holdings, these will be consolidated under the proposed Strategic Reserve.

A provision is also for the usage of the reserved BTC as a safe financial mechanism that will enable the agencies to use BTC as long-term assets. Moreover, the government will establish a decentralized storage network that can protect the assets against vulnerabilities and risks.

Image: Reddit

Some Critics Question The Lummis Plan

Like most financial policies, the Lummis plan has its critics. According to Avik Roy of the Foundation for Research on Equal Opportunity (FREOPP), Lummis’ suggestion to create a Bitcoin reserve will not necessarily help the country solve its debt woes.

In a speech at the North American Blockchain Summit 2024, Roy argued that the Lummis plan cannot cover the growing debt, which is now at $35 trillion.

Roy shared that a BTC reserve will be a welcome move, but the government must still implement budget reports to address the $2 trillion annual deficit. He also raised the possibility that the country may abandon its BTC reserves in the future, similar to gold’s experience in the 1970s.

Featured image from ZeroCap, chart from TradingView

As MicroStrategy continues to reap success with its aggressive Bitcoin play, it’s only a matter of time before other companies tread in the same path.

Genius Group, an AI-focused and Bitcoin education firm, is the latest one to the bandwagon. According to a press release, Genius Group said that it had bought 110 Bitcoins for a sum of $10 million at an average price of $90,932.

This purchase sets up the company’s first “Bitcoin treasury,” an essential step towards its plans to implement a “Bitcoin-first policy,” which it initially outlined in 2023. Under its Bitcoin-first policy implemented last year, the company commits to investing at least 90% of its current and future reserves in digital assets, initially targeting $120 million.

The 110 BTC is the company’s first tranche, and it expects to make more purchases to achieve its strategic plan.

JUST IN: AI firm Genius Group kicks off its #Bitcoin treasury with a $10M purchase of 110 BTC! 🚀 pic.twitter.com/Ts5KQqi4I6

— Simply Bitcoin (@SimplyBitcoinTV) November 18, 2024

A Bitcoin-First Policy For Genius Group

Genius Group announced on November 12th to go full-steam ahead on Bitcoin. According to the company’s corporate strategy presented at the end of the 2023 quarter, it would commit 90% of its reserve to BTC, a long-term plan of holding Bitcoins worth as much as $120 million.

According to CEO Roger James Hamilton, his company is in a position to integrate traditional learning with modern financial literacy backed by the blockchain. He added that when Genius Group adopted MicroStrategy’s Michael Saylor’s Bitcoin plan, there were no rules or plans to follow.

BTC market cap currently at $1.8 trillion. Chart: TradingView.com

Genius Group Continues Its Blockchain, Bitcoin Education Series

The Genius Group is primarily an AI-focused and Bitcoin-first education group. The group aims to promote Bitcoin as a payment system through its educational platform as part of its operations.

The company recently launched its Web3 Wealth Renaissance, an initiative that seeks to encourage the use of AI and spread awareness of the benefits and functions of cryptocurrencies and the blockchain.

Genius Group’s education campaign also includes a Bitcoin and Blockchain podcast series. On Tuesday at 9:00 a.m. Eastern Time, the podcast will cover a forecast on Bitcoin and fiat money’s future. The podcast will also explore the MicroStrategy story and how Saylor pioneered the Bitcoin Treasury concept.

This morning:

– MicroStrategy buys another 51,780 BTC for $4.6B
– MARA announces $700 million convert to acquire more BTC
– Semler Scientific raises $21mm ATM and acquires 215 BTC
– Metaplanet issues ¥1.75B debt offering to buy more BTC

The corporate Bitcoin race is heating up.

— Sam Callahan (@samcallah) November 18, 2024

More Corporations Adopt A Bitcoin-Focused Investing Policy

With MicroStrategy as a clear leader, many companies are also starting to add Bitcoin to their holdings. On November 18th, MicroStrategy announced its purchase of 51,780 Bitcoin for $4.6 billion.

Other companies followed suit, with MARA allocating $700 million to buy more Bitcoin, Semler Scientific raising $21 billion to buy 215 BTC, and Metaplanet issuing a $1.75 billion yen debt to finance its Bitcoin dream.

Other industries are joining the trend, including tech and crypto companies. For example, Cosmos Health Inc. has integrated a crypto strategy. The government’s interest in Bitcoin and crypto is also increasing. Sławomir Mentzen, a Polish presidential candidate, has announced his plans to create a BTC reserve.

Featured image from DALL-E, chart from TradingView

The price of Bitcoin (BTC)  rose by 7.99% in the past week to reach a new all-time high of $99,655 on November 22. Thereafter, the maiden cryptocurrency has experienced a slight retracement in the past 48 hours falling to around $98,200. However, speculations of a major price correction continue to emerge considering BTC’s impressive price rally over the past seven weeks.

Why Bitcoin Must Move Above $100,535 – Analyst

In an X post on November 23, Ali Martinez shared an intriguing prediction on Bitcoin’s potential price movement. According to the popular crypto analyst, the TD Sequential, used to spot potential price reversals, has indicated a sell signal on Bitcoin’s 12-hour chart, suggesting an incoming price dip. 

Martinez’s latest forecast aligns with popular expectations of a Bitcoin price correction amidst the asset’s 61.76% price gain from $60,500 in early October. This notion stems from various trading metrics and indicators. For example, Bitcoin’s Relative Strength Index has perpetually remained in the overbought zone suggesting potential for a sudden price pullback.

Furthermore, fellow analyst Maartunn reports that BTC’s Fear & Greed Index has a 4.5-year high of 94. Generally, any Fear & Greed Index above 75 represents extreme greed among investors, which is overwhelmingly bullish but also presents room for overvaluation that precedes significant price corrections.

Of more concern, Maartun also notes that Bitcoin traders’ unrealized profit levels have reached 57% and are gradually approaching the local peak of 69% in March 2024 adding to the increased potential of price correction.

According to Ali Martinez, if BTC undergoes the much-anticipated correction as indicated by the TD Sequential and other factors, the crypto market leader could fall to $91,583. Amidst strong selling pressure, Bitcoin could further slide to $85,610 indicating a potential 12.64% decline from its present market price. 

However, Martinez also postulates that BTC could nullify the sell signal by the TD Sequential and avoid a major correction by closing above $100,535 on the 12-hour daily chart. Considering Bitcoin’s recent price movement and events such as excitement around Donald Trump’s electoral victory alongside increased ETF inflows, an uptrend continuation is definitely a strong possibility.

BTC Price Overview

According to data from CoinMarketCap, BTC trades at $98,213 reflecting a 0.44% decline in the past day. In tandem, the asset’s daily trading volume is valued at $44.02 billion having declined by 43.14%. However, Bitcoin remains largely profitable for long-term holders with gains of 45.06% in the past 30 days. With a market cap of $1.95 trillion, the premier cryptocurrency remains the world’s largest digital asset.