$100K Bitcoin Looms as Strategic Reserve Era Begins

Happy Monday Bitcoiners, it's Bam here with another Bitcoin update!

Each week, our team at Bitcoin News saves you time by curating the most impactful events into a concise, easy-to-read update.

Notable events this week include:

• BITCOIN Act proposes acquiring 1 million BTC over the next 5 years.

• Pennsylvania proposes a bill to establish a Strategic Bitcoin Reserve.

• Treasury Secretary candidate discloses $100 million Bitcoin exposure.

Let’s dive in! ⚡

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LATEST NEWS 📰

🙌 ADOPTION

• Bitcoin's market cap now surpasses that of aboveground silver, a noble metal used as money for over 4,000 years.

• Vik Sharma, founder of Cake Wallet, capitulates on his family’s ETH holdings—held since 2015—and converts it all to Bitcoin.

• Tether introduces WDK, an open-source, self-custodial toolkit enabling developers to build Bitcoin and USD₮ wallets for humans, AI, and robots.

⚖️ LEGAL

• Howard Lutnick, CEO of Cantor Fitzgerald, with “hundreds of millions of dollars in Bitcoin exposure,” is the leading candidate for Treasury Secretary.

• Pennsylvania’s House of Representatives introduces a bill to establish a Strategic Bitcoin Reserve, allocating up to 10% of the state treasury.

• Senator Cynthia Lummis introduces the "Bitcoin Act of 2024" (S.4912) to Congress, proposing the purchase of 1,000,000 Bitcoin over five years.

📈 MARKETS

• AI firm Genius Group adopts Bitcoin as primary treasury asset, plans to acquire an initial $120 million of BTC.

• IBIT has reached $40 billion in assets in just 211 days, placing it in the top 1% of all ETFs by assets. At just 10 months old, it’s already larger than all 2,800 ETFs launched in the past decade.

• BlackRock reveals it directly owns $91.6 million in Bitcoin through its ETF—a fraction of Goldman Sachs’ $700+ million Bitcoin ETF position.

⛏️ MINING

• The CCP official responsible for leading the crackdown on Bitcoin mining in China has been dismissed.

• Bitcoin miners send over 45K Bitcoin to exchanges over the last week, including the second-largest daily outflow from miners this year.

• Bitcoin miner MARA's shares fall 9.1% after-hours following disappointing Q3 earnings.

🗳️ POLITICS

• Bernstein recommends that India adopt Bitcoin as a strategic reserve asset.

• David Bailey warns that the United States is being front-run on its Bitcoin strategy and urges the rapid establishment of a Strategic Bitcoin Reserve.

• El Salvador announces a new buyback offer for its external debt maturing between 2027 and 2034, as Salvadoran bonds make a remarkable recovery, now trading at or near par.

BAMS 2 SATS 🧢

It’s wild to think that just a year ago, we were speculating about the impact of Bitcoin ETFs being approved. Less than a year later, these entities are in a bare knuckle brawl to accumulate as much Bitcoin as possible, collectively acquiring over 1 million BTC since January.

What was once dismissed as “fake internet money” has surpassed silver in market cap and is now being considered by the U.S. government as a potential Strategic Reserve asset. Confidence in the space has surged, with Pennsylvania’s House of Representatives leading the way by proposing a bill to create a Strategic Bitcoin Reserve. The plan aims to allocate 10% of state reserves—potentially including “rainy day funds”—amounting to over $1 billion worth of Bitcoin.

Combined with Michael Saylor announcing a $42 billion Bitcoin purchase over the next three years—and completing a $2 billion buy just this week—it seems retail, institutional, and sovereign FOMO is starting to take hold.

What does global FOMO look like?

• Senators suggesting selling gold to buy Bitcoin.

• Rumors of countries front-running the U.S. with Strategic Bitcoin Reserve strategies.

• Pennsylvania moving to front-run federal Bitcoin accumulation.

• BlackRock’s IBIT ETF acquiring 54,106 BTC in 14 days—when only 6,243 were mined.

• One public company declares Bitcoin its primary reserve asset, while another plans to allocate 60% of its cash flow into Bitcoin.

• Analysts returning to news outlets, reigniting discussions of Bitcoin price targets.

Many of us have been anticipating this moment, and it feels almost surreal. A $100K Bitcoin—a milestone widely discussed in 2021—is now less than 10% away.

The last bull run was cut short by China’s mining ban—spearheaded by an official who has since been fired—and the collapse of fraudulent players like FTX flooding the market with paper Bitcoin. Now, many seem to underestimate the potential for new highs this cycle.

While the current price feels high and we’re all feeling fortunate, it’s important to put things in perspective. Bitcoin is only now breaking out against the money supply after seven years. In other words, when adjusted for significant monetary inflation, today’s price is roughly equivalent to its level in March 2021.

I can’t predict how high Bitcoin’s price will go in the short term, but here’s what I do know:

Keep in mind that this is the reason Bitcoin is designed to continue to appreciate over time. If you’re planning to sell part of your stack, be sure you’re at peace with likely never reclaiming those sats. There’s nothing wrong with selling to enhance your life, but attempting to sell and “buy back cheaper” often ends in regret.

Stay safe, enjoy the ride & keep on stacking!
Bam

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