Nicholas Merten, known as DataDash, discusses what he believes could be one of the most significant events for Bitcoin in 2024: the potential for governments and central banks to start purchasing Bitcoin.
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Merten highlights the recent Bitcoin 2024 conference, where two prominent U.S. presidential candidates, Donald Trump and Robert F. Kennedy Jr., expressed support for Bitcoin. Trump stated that if elected, he would hold the existing U.S. government Bitcoin reserves (approximately 213,000 BTC) as a strategic asset. Kennedy went further, proposing to mandate the U.S. Treasury to purchase 550 Bitcoin daily until reaching a reserve of 4 million Bitcoin.
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According to Merten, this shift in political rhetoric could dramatically change the supply and demand dynamics for Bitcoin. He suggests that if governments and central banks start viewing Bitcoin as a strategic asset, it could lead to increased demand and potentially higher prices.
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Merten also mentions Senator Lummis's proposal for legislation that would have the United States purchase 5% of the total Bitcoin supply (about 1 million BTC) as a strategic reserve, similar to the gold reserves held at Fort Knox.
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While acknowledging that some of these proposals might be too ambitious or unlikely to be implemented, Merten emphasizes that the mere discussion of such ideas by political figures represents a significant shift in Bitcoin's perceived importance.
Merten believes this potential government interest could be the catalyst Bitcoin needs to break past its previous all-time highs and potentially reach $80,000 to $90,000 in the near future. He suggests that this narrative could drive not only Bitcoin's price but also benefit related stocks and the broader cryptocurrency market.
