Bitcoin’s price has surged nearly 20% over the past week, reaching close to $80,000 per bitcoin, fueled by speculation that a nation-state may be quietly accumulating bitcoin, as well as heightened expectations surrounding U.S. president-elect Donald Trump’s pro-bitcoin policies.
Rumors are swirling that an undisclosed country has been quietly buying bitcoin, possibly making it one of the top five national holders of the digital asset.
David Bailey, CEO of Bitcoin Magazine publisher Bitcoin Inc. and advisor to the Trump campaign on bitcoin strategy, hinted at the speculation on social media, posting that “there is at least one nation-state actively acquiring bitcoin.” Bailey also teased that this country could soon make a public announcement about its bitcoin holdings.
The largest national holders of bitcoin currently include the U.S. and China, each holding close to 200,000 BTC, largely through seized assets. Other countries with significant holdings include the U.K., Ukraine, Bhutan, and El Salvador. While Ukraine’s bitcoin was largely acquired through donations after Russia’s 2022 invasion, Bhutan has been experimenting with bitcoin mining, and El Salvador adopted bitcoin as legal tender in 2021.
Adding to the excitement, U.S. president-elect Donald Trump previously pledged to make the U.S. a global leader in crypto, proposing the creation of a “bitcoin strategic reserve.” U.S. Senator Cynthia Lummis (R-Wyo.) introduced a bill earlier this year called the Bitcoin Act, which proposes the acquisition of up to 1 million BTC over five years to help manage the national debt. These developments have stirred high expectations among bitcoin investors and enthusiasts.
“We’re witnessing what could be the start of a seismic shift for bitcoin, as both institutional and national interests converge,” said Rachael Lucas, crypto analyst at BTCMarkets. “If the U.S. moves forward with a bitcoin reserve, it would signal unprecedented legitimacy for bitcoin and may drive the price well beyond current levels.”
Amid these speculations, Dennis Porter, founder of the Satoshi Action Fund and an advocate for bitcoin regulations, also hinted at major developments in the space. Following a call with industry insiders, Porter posted, “I’m not going to lie… I am more bullish today than ever before. Huge things coming.”
Bitcoin’s recent surge has been mirrored by other cryptocurrencies, including ethereum, which is up 30%, dogecoin up 50%, and cardano up 70%, indicating a broad bullish trend in the crypto market as 2024 nears its close.
