Key Points
- Michael Saylor, Founder of Strategy, urges the U.S to acquire 5%-20% of the total Bitcoin supply.
- Despite the bullish update, Bitcoin’s price has declined from $92.8k to $86.8k.
Michael Saylor, the founder of Strategy (formerly known as MicroStrategy), has reiterated his stance that the United States should aim to control between 5% and 20% of the total Bitcoin (BTC) supply.
This proposal was presented during the first-ever crypto summit at the White House, where Saylor shared his vision for the U.S’s digital dominance in the 21st century. The plan includes a 10-year BTC acquisition strategy.
Details of the Plan
Saylor’s plan suggests that if the U.S manages to acquire between 5% and 20% of Bitcoin’s total supply, equating to 1.05M-4.2M BTC, it could generate between $16 and $81 trillion over the next two decades. This could potentially help to alleviate the country’s fiscal debt problem. However, the plan would cost between $90 billion and $362 billion based on current prices.
Saylor has previously called for the U.S to control a significant portion of Bitcoin’s market. He warned that if the U.S does not seize this opportunity, other countries such as the UAE, Russia, and China might take advantage of it.
Potential Bitcoin FOMO Among Nations
Brian Armstrong also expressed the possibility of Bitcoin FOMO among other countries after the establishment of the U.S strategic BTC reserve. The rest of the G20 could potentially follow suit if they see America taking the lead in the Bitcoin and crypto industry.
Currently, the U.S government owns 198k BTC, worth $17 billion at current prices. However, market analysts suggest that some of the forfeitures could be returned to Bitfinex, reducing the stash to 88k BTC.
It remains unclear how the U.S. government would adopt ‘budget-neutral strategies’ to acquire more BTC. However, there is a possibility that the nation-state FOMO could intensify soon. Recent reports suggest that South Korea’s top financial insiders are urging authorities to consider a strategic BTC reserve, which could positively affect Bitcoin’s value.
Despite these bullish updates, Bitcoin’s price has declined from $92.8k to $86.8k, an 8% drop. Even the end-March price projection doesn’t look positive. According to predictions site Polymarket, the market is expecting a likely dump to $70k rather than a strong rally above $100k. A similar outlook is evident among Options traders too.
According to data from Deribit, Options traders are pricing only a 12% chance that BTC would reclaim $100k by the end of March.
