Lummis Proposes Strategic Bitcoin Reserve to Hedge US Debt
Senator Cynthia Lummis has renewed calls for a Strategic Bitcoin Reserve to tackle the $37 trillion US national debt, praising President Trump’s executive order framework and urging rapid, budget-neutral implementation. The administration is weighing structures beyond gold certificate conversion, with initial funding likely drawn from over 130,000 seized BTC and possibly $14 billion in recovered cryptocurrency. Lummis and Representative Nick Begich have introduced the BITCOIN Act of 2025, proposing annual purchases of 200,000 BTC for five years—targeting 1 million BTC to halve the debt over 20 years. Meanwhile, Bitcoin’s price has fallen near $101,500, down almost 10% this week, briefly dipping below $100,000, with resistance at $102,000. Traders should monitor regulatory progress on the Strategic Bitcoin Reserve and key support around $100,000, as growing bipartisan support highlights Bitcoin’s role as an inflation hedge and strategic fiscal asset.
Bullish
The renewed push for a Strategic Bitcoin Reserve and the introduction of the BITCOIN Act of 2025 signal increasing institutional support and potential large-scale BTC purchases, which is bullish for Bitcoin. In the short term, price volatility around key levels ($100,000 support, $102,000 resistance) may persist as traders react to regulatory news and implementation details. However, in the long term, formal reserve rules and potential acquisition of up to 1 million BTC to hedge $37 trillion in US debt should underpin demand and market confidence, supporting upward pressure on Bitcoin’s price.