Bitcoin Could Surge to $160,000? US Republican Senator Says "Strategic Bitcoin Reserve" Funding Ready to Deploy

Stock News
Oct 07

On Tuesday, US Republican Senator Cynthia Lummis stated that funding preparation for America's strategic Bitcoin reserve is "ready to deploy at any time," a remark that quickly ignited discussions in Washington about whether the Treasury Department should implement the plan ahead of schedule, even before related legislation is finalized.

Lummis posted on social platform X: "The legislative process is long and arduous, but thanks to President Trump, funding acquisition for the strategic Bitcoin reserve can begin at any time." This statement suggests the Treasury Department may already possess or be about to gain political support to initiate related infrastructure development and fund allocation before formal legislation passes.

According to an executive order signed by President Trump in March, the US Treasury Department currently manages approximately 200,000 Bitcoin, valued at about $17 billion at prevailing prices, serving as foundational assets for strategic reserves. White House advisor David Sacks indicated the plan operates as "budget neutral," functioning through seized assets rather than taxpayer funds.

The executive order simultaneously establishes two accounts: first, the "Strategic Bitcoin Reserve" for storing Bitcoin prohibited from sale; second, the "Digital Assets Repository" for managing other confiscated cryptocurrency assets. Both fall under Treasury Department jurisdiction and operate in a "zero-cost" format.

Trump described Bitcoin as "an amazing new ledger-based asset," emphasizing the policy aims to alleviate debt pressure and consolidate America's financial leadership position. Under the House 2026 fiscal appropriations bill, the Treasury Department must submit research reports within 90 days regarding custody, security, and accounting systems for the "Strategic Bitcoin Reserve," coordinating with the National Security Agency for classified briefings.

The bill also plans to increase the Office of Terrorism and Financial Intelligence budget to test AI-based sanctions monitoring systems, while prohibiting the Treasury Department from using appropriated funds to design central bank digital currencies. Though the bill doesn't authorize additional Bitcoin purchases, it marks the first inclusion of Bitcoin in core US fiscal policy discussions.

According to analysis by legal consulting firm Vitallaw, Trump's executive order effectively transforms the Treasury Department into a "digital Fort Knox," centrally managing all federally seized Bitcoin assets, requiring implementation of multi-signature protocols, cross-agency oversight, and strict key management mechanisms to ensure institutional continuity across administrations.

Asset management company VanEck's modeling predicts that if the US accumulates 1 million Bitcoin by 2029, by 2049 its value could offset approximately 18% of national debt burden, equivalent to roughly $21 trillion in reserves supporting $116 trillion in debt, assuming Bitcoin's annual growth rate of 25%. Lummis believes such a reserve system would strengthen America's position as a "financial and technological superpower."

Cryptocurrency analysis firm BeInCrypto anticipates that if Congress passes legislation without mandatory procurement, Bitcoin prices might maintain a range of $115,000 to $125,000; however, if regulations require the Treasury Department to purchase 200,000 Bitcoin annually, prices could be pushed to a range of $130,000 to $160,000, primarily due to supply constraints.

CoinShares considers sovereign-level Bitcoin allocation as an inflation hedge and reserve diversification tool, while demonstrating US leadership in digital finance. Blockchain analytics company Chainalysis warns that if multiple nations simultaneously establish sovereign Bitcoin reserves, market liquidity could face disruption.

Economist David Krause criticized the plan as a "high-risk experiment in financial symbolism" that could blur the boundaries between fiscal prudence and speculative behavior.

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