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Donald Trump’s inauguration on January 20 sparks debate over Bitcoin reserve fund

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As President-elect Donald Trump prepares to take office on January 20, attention is turning to Bitcoin. Many believe his pro-crypto policies could lead to a significant price increase for Bitcoin, while debates over the adoption of a national Bitcoin reserve are intensifying. Could this be the beginning of a new financial chapter for the United States?

Trump Administration Sparks Bitcoin Optimism
As Trump’s inauguration approaches, speculation is growing about how his administration might support cryptocurrencies. Some analysts predict that the price of Bitcoin could surge to $130,000 or even $150,000 if Trump announces crypto-friendly policies.

One of the most talked about ideas is Senator Cynthia Lummis’ “Bitcoin Act,” which proposes the Treasury Department purchase 1 million BTC over the next five years. Proponents believe the move could strengthen the U.S. economy and reduce reliance on traditional monetary systems.

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The Bitcoin Reserve Debate Continues
The idea of ​​a national Bitcoin reserve fund has sparked a mix of hope and concern. Proponents, like Suriname’s presidential candidate Maya Parbhoe,  argue that Bitcoin could help countries escape the problems of inflation and reckless fiscal policy.

She believes that Bitcoin adoption will bring stability and protect people's assets, comparing its importance to the Internet in the 1990s.

However, critics warn of potential risks. Bitcoin expert Nic Carter said that while Bitcoin works well in smaller countries like El Salvador, it could destabilize the US financial system.

Others, like former New York Federal Reserve President Bill Dudley, worry that funding Bitcoin reserves could increase the national debt or cause inflation.

Meanwhile, Ki Young Ju, CEO of CryptoQuant, raised an important question called the “chicken and egg” question.

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Will Bitcoin adoption happen because the dollar is devaluing or will Bitcoin adoption cause the dollar to weaken?

Amid the controversy, on-chain data is giving Bitcoin fans more reason to be hopeful. The Coinbase premium, a metric that shows U.S. demand for Bitcoin, has turned positive recently , signaling renewed interest from U.S. investors.

As Bitcoin price approaches its ATH of $108,000, this new demand could push the price even higher.

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