Senator Lummis Files 'Bitcoin Act of 2024' as Bitcoin nears $100,000 Milestone: Will the Act Push Bitcoin Further?

Senator Cynthia Lummis has introduced the Bitcoin Act of 2024, a groundbreaking bill that proposes the creation of a U.S. Strategic Bitcoin Reserve. As Bitcoin reaches new heights, surpassing the $98,000 mark and closing in on the $100,000 milestone, the timing of this bill couldn’t be more significant. The introduction of this bill, coupled with the recent surge in Bitcoin’s price and the growing interest in Spot Bitcoin ETFs, raises the question: could the Bitcoin Act of 2024 accelerate Bitcoin’s mainstream adoption and push its price even higher?

Key Provisions of the Bitcoin Act of 2024

Introduced in July 2024, the Bitcoin Act of 2024, officially known as the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act of 2024, aims to solidify the U.S. dollar and position the U.S. as a global leader in digital finance. A central feature of the bill is the establishment of a Strategic Bitcoin Reserve. Managed by the U.S. Treasury, this reserve would hold Bitcoin securely in decentralized locations and include provisions for managing Bitcoin forks and airdrops, with a retention period of five years.

Additionally, the bill proposes a Bitcoin Purchase Program to acquire up to 1 million Bitcoins over five years, which would be held for a minimum of 20 years. The plan also ensures transparency through proof-of-reserve audits, while allowing states to store Bitcoin in segregated accounts to give them more control over their holdings.

Bitcoin ETFs: A Major Step Toward Institutional Adoption

In addition to the Bitcoin Act, the growing popularity of Spot Bitcoin ETFs further highlights the increasing institutional acceptance of Bitcoin. According to recent reports, the total assets under management (AUM) of Spot Bitcoin ETFs have surpassed the $100 billion mark, bolstered by nearly $30 billion in inflows. This surge in assets follows Bitcoin's rapid rise in value and reflects growing investor confidence in Bitcoin as a legitimate financial asset.

The approval of Spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) has opened the doors for broader institutional involvement. The ETFs are seen as a safer and more regulated way for investors to gain exposure to Bitcoin, which has historically been volatile. With total assets in Spot Bitcoin ETFs now representing 5.4% of Bitcoin's total market capitalization, these funds have become a significant vehicle for mainstream adoption.

Impact of the Bitcoin Act and ETFs on Bitcoin’s Future

The Bitcoin Act of 2024 and the rise of Spot Bitcoin ETFs could have profound effects on Bitcoin’s trajectory:

1. Institutional Adoption

The combination of the Bitcoin Act and the rise of Spot Bitcoin ETFs provides a clear signal that Bitcoin is increasingly seen as a legitimate financial asset. With U.S. government backing and more regulated investment vehicles like ETFs, Bitcoin could attract even more institutional investors, which in turn would drive further demand and push prices higher.

2. Legitimacy and Stability

The Bitcoin Act of 2024 would give Bitcoin an official place in U.S. financial policy, helping to legitimize it and reduce skepticism. The strategic reserve managed by the Treasury would ensure that Bitcoin’s role as a financial asset is firmly established, contributing to greater stability in its price.

3. Increased Liquidity and Market Participation

The Spot Bitcoin ETFs provide retail and institutional investors with a new way to invest in Bitcoin without having to directly buy and store the cryptocurrency. This increased liquidity and accessibility could result in more capital flowing into the market, potentially pushing the price higher. As more funds pour into these ETFs, it may further fuel demand for Bitcoin, contributing to its upward momentum.

4. Hedging Against Inflation

One of the main goals of the Bitcoin Act is to use Bitcoin as a hedge against inflation, especially as central banks, including the Federal Reserve, continue to grapple with inflationary pressures. Bitcoin’s deflationary supply model could provide a safeguard against currency devaluation, enhancing its appeal as a store of value.

Bitcoin’s Surge and the $100,000 Milestone

Bitcoin’s recent surge in value—breaking past $98,000 and heading towards $100,000—has accelerated interest in cryptocurrency across all sectors. This surge, combined with the growing influence of Spot Bitcoin ETFs, which have brought $30 billion in inflows, has triggered a new wave of optimism for Bitcoin’s future. If the Bitcoin Act of 2024 is passed, it could further amplify this momentum by giving the U.S. government an active role in supporting Bitcoin’s growth.

Will the Bitcoin Act Propel Bitcoin Higher?

The Bitcoin Act of 2024 and the success of Spot Bitcoin ETFs mark a turning point in Bitcoin’s journey to mainstream adoption. The creation of a Strategic Bitcoin Reserve, combined with institutional vehicles like Bitcoin ETFs, could increase demand and solidify Bitcoin’s status as a mainstream financial asset. If the bill passes, it will likely help push Bitcoin’s price even higher, especially as government backing and institutional investment continue to flow in.

With Bitcoin on the verge of breaking the $100,000 milestone and institutional interest skyrocketing, the Bitcoin Act of 2024 could be the catalyst that propels Bitcoin into the next phase of its global dominance. As both legislation and financial products evolve to support cryptocurrency, Bitcoin’s future has never looked more promising.

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