- Bitwise’s Jeff Park predicts Bitcoin could hit $1 million if the US adopts a Bitcoin reserve strategy.
- The likelihood of such a federal reserve is low but could reshape the global financial landscape.
What happened: US Bitcoin reserve could spark record price surge
Jeff Park, head of alpha strategies at Bitwise Invest, has suggested that Bitcoin’s price could soar to $1 million if the United States creates a Bitcoin reserve. Park expressed this bold projection on social media, highlighting it as a potential trigger for unprecedented Bitcoin growth in 2025.
However, he estimated the likelihood of the federal government implementing such a reserve in 2024 to be only 10%.
The discussion around a US Bitcoin reserve has gained traction, especially after Senator Cynthia Lummis proposed a draft bill to allocate one billion Bitcoins to the US Treasury over five years. This idea has garnered mixed reactions. While proponents argue it would cement the US’s leadership in cryptocurrency, sceptics, such as Galaxy CEO Mike Novogratz, believe it is unlikely in the near term.
Novogratz stated that even partial adoption could push Bitcoin’s price to $500,000, while Fundstrat’s Tom Lee suggested a conservative target of $250,000 with the potential for higher surges.
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Why it’s important
The concept of a US Bitcoin reserve is not just about Bitcoin’s price—it represents a paradigm shift in how nations approach financial reserves and cryptocurrency adoption. If implemented, it could prompt a domino effect, with other countries exploring similar strategies to diversify their reserves and embrace decentralised finance.
Such a move would also validate Bitcoin as a legitimate global reserve asset, similar to gold, driving institutional and retail adoption alike. The geopolitical implications are vast; the US could solidify its dominance in the digital asset space, challenging traditional financial systems.
However, scepticism remains high. Countries like Japan have already dismissed the idea of investing reserves in Bitcoin, citing volatility and regulatory concerns. Whether or not the US adopts a Bitcoin reserve, the very discussion highlights the growing influence of cryptocurrency in shaping future economic policies.
