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Michael Saylor Advocates for a $81 Trillion Bitcoin Reserve for the U.S.

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Michael Saylor Advocates for a $81 Trillion Bitcoin Reserve for the U.S.

Bitcoin Demand Surges as Supply Hits Historic Lows

Bitcoin Price Faces Correction Risks Amid Key Support Challenges

Michael Saylor Advocates for a $81 Trillion Bitcoin Reserve for the U.S.

Michael Saylor proposes a Bitcoin reserve strategy to strengthen the U.S. economy, reduce national debt, and unlock trillions in value.

  • Main Points:

    • Saylor’s Vision: A Bitcoin reserve could create $16–81 trillion in wealth for the U.S. Treasury.

    • Senator Lummis’ Framework: Calls for purchasing 200,000 Bitcoin annually to build a 1 million BTC reserve.

    • Strategic Advantage: A Bitcoin reserve could enhance economic dominance and counteract national debt.

  • Detailed Insights:

    • Economic Impact: Saylor suggests Bitcoin as a strategic national asset to bolster the dollar and drive economic growth.

    • Reserve Proposal: Senator Lummis’ plan involves funding Bitcoin purchases through Federal Reserve profits and gold holdings.

    • Global Competition: Saylor warns of the U.S. falling behind nations like China without proactive digital asset policies.

    • Current Holdings: The U.S. already leads in Bitcoin holdings with over 207,000 BTC seized in criminal cases.

    • Market Outlook: Saylor envisions the digital asset market growing to $280 trillion, over 100x its current value.

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Bitcoin Demand Surges as Supply Hits Historic Lows

CryptoQuant reports a sharp rise in Bitcoin demand alongside a significant drop in sell-side liquidity, echoing trends last seen in 2020.

  • Main Points:

    • Demand Growth: Monthly Bitcoin demand rising at a record pace of 228,000 BTC.

    • Supply Crunch: Sell-side liquidity at its lowest since 2020, down 678,000 BTC this year.

    • OTC Activity: Institutional demand drives OTC Bitcoin inventory down by 26,000 BTC in 2024.

  • Detailed Insights:

    • Shrinking Supply: Bitcoin available for sale across exchanges and OTC desks declines steadily, reflecting heightened demand.

    • Accumulation Spike: Accumulator addresses now expand by 495,000 BTC monthly, highlighting investor confidence.

    • Liquidity Trends: USD stablecoin market cap surpasses $200 billion, signaling fresh inflows into the crypto market.

    • Market Dynamics: Liquidity inventory ratio drops to 6.6 months, down from 41 months in October, indicating reduced selling pressure.

Bitcoin Price Faces Correction Risks Amid Key Support Challenges

Bitcoin’s failure to sustain the $100K mark raises concerns of a deeper correction toward $90K or even $80K. Technical and on-chain metrics hint at bearish momentum.

  • Main Points:

    • Price Struggles: Bitcoin dropped below $100K, testing lows near $92K.

    • Bearish Signals: RSI trends and price rejection at $108K indicate weakened bullish momentum.

    • On-Chain Metrics: Active addresses show divergence from price action, signaling potential weakness.

  • Detailed Insights:

    • Daily Chart: BTC risks a deeper pullback if it fails to reclaim the $100K level soon, with $90K and $80K as potential support zones.

    • 4-Hour Chart: The ascending channel’s lower trendline holds, but breaking it could lead to a sharper decline below $90K.

    • Active Addresses: Despite the recovery in Bitcoin’s network activity, it has not reached new highs, hinting at a divergence that could trigger a prolonged correction.

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This article is not financial advice. Market conditions can change rapidly, and past performance does not guarantee future results