The United States may begin purchasing Bitcoin using profits from its gold reserves, according to Bo Hines, Executive Director of the Presidential Advisory Council on Digital Assets.
Hines said this approach would allow the government to expand its crypto reserves without placing additional strain on the federal budget. The proposal already has legislative backing under the BITCOIN Act, introduced by Senator Cynthia Lummis.
Budget-Neutral and Strategic
Bo Hines described the sale of gold at current market prices as a logical way to finance Bitcoin acquisitions. He emphasized that the concept of "budget-neutral" purchases of digital assets was already mentioned by Donald Trump, who previously proposed the creation of a strategic Bitcoin reserve.
The presidential administration is currently discussing various implementation options for this initiative.
BITCOIN Act and $80 Billion in Purchases
Senator Lummis’s BITCOIN Act proposes that the U.S. government acquire 1 million BTC over five years, which would amount to about 5% of the total Bitcoin supply. Proposed funding sources include revenue from selling gold held by the Federal Reserve System.
An alternative bill is also under review in the House of Representatives, introduced by Byron Donalds, which would authorize the Treasury and Department of Commerce to purchase Bitcoin as long as the purchases do not impact the federal budget.
Earlier, during a crypto summit, Donald Trump stated that the U.S. should aim to become the world’s crypto capital. He urged lawmakers to accelerate the creation of rules for stablecoins and the digital asset industry at large.
Market Reaction and BTC Price Outlook
Meanwhile, the future of Bitcoin remains uncertain. CryptoQuant CEO Ki Young Ju believes that Bitcoin’s bull market has ended. He cited declining liquidity and signs that large investors (whales) are beginning to sell off their holdings.
In contrast, BitMEX co-founder Arthur Hayes is betting on further price growth. He predicts that BTC will reach $110,000 before falling back to $76,500. Hayes attributes his optimism to a shift in Federal Reserve policy, which he believes is moving from tightening to stimulus measures, including buying U.S. Treasury bonds.
At the time of writing, Bitcoin is trading at $87,751.
This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.