Summary
- Senator Cynthia Lummis urges the US government to sell its gold holdings to buy Bitcoin.
- She recently outlined the Strategic Bitcoin Reserve plan to buy 1 million BTC over 5 years.
As the crypto market and Bitcoin are riding a massive wave, new moves are being made in the US to establish a national Strategic Bitcoin Reserve.
Senator Cynthia Lummis recently said that the government should consider selling its gold reserves to buy BTC.
“Sell the Past, Buy the Future”
Senator Cynthia Lummis talked to CNBC and she said out loud what many were already thinking, as also highlighted by Anthony Pompliano.
Lummis proposed to the US government to sell its gold and buy Bitcoin to create a Strategic Reserve. She also shared her interview with CNBC via her X account, saying that it is time to “sell the past,” and “buy the future.”
MicroStrategy’s Michael Saylor also shared the video featuring Lummis and quoted her words.
Bitcoin recorded a surge of over 45% over the past month, while gold saw a 3% decline.
Shifting Investor Preference Toward Alternative Store-of-Value Assets
According to official notes, in the past month, BTC has outperformed gold by an important margin, seeing an increase of 46%, while gold prices have dropped by more than 3%.
This divergence highlights a change in interest for investors from gold to other store-of-value assets.
Institutional investors’ surging interest in BTC and related products is also mirrored by the notable flows that entered the US BTC ETFs lately and by the successful launch of BTC ETF options.
As of November 20, the total locked assets in BTC ETFs surpassed $100 billion, according to data from SoSoValue.
Deenar co-founder Maruf Yusupov said that BTC’s rapid rise following the US elections and the results which brought back President Donald Trump could be re-shaping traditional views on inflation hedges.
Trump’s BTC and Crypto Support Boosts The Market
Yusupov told The Block recently that Trump’s focus will be tax cuts, and tariffs, and crypto is driving interest in BTC as a modern alternative to gold.
He said that as institutional adoption accelerates, there could be a significant shift in capital away from gold and into digital assets.
deVere Group CEO, Nigel Green told The Block that Bitcoin is now viewed as a hedge against inflation, and a tool for portfolio diversification, showing increased adoption all over the world.
Senator Lummis’ idea of the US selling its gold reserves to buy Bitcoin is supported by others as well. Recently, she outlined the Strategic Bitcoin Reserve plan.
Buying 1 Million BTC over 5 Years
In the BITCOIN Act 2024, Lummis and supporters revealed the plan to establish a Strategic BTC Reserve. The plan includes the Treasury’s buying of 200,000 BTC per year for 5 years and holding the coins for a minimum of 20 years.
The plan also includes publishing quarterly reports audited by independent third parties, and cryptographic attestation.
Another essential issue mentioned in the plan is protecting Bitcoin property rights – the right of self-custody is important and the plan states that the US Government cannot seize or confiscate lawfully owned BTC.
Earlier today, BTC hit a new ATH at $98,300, racing towards the next level of $100,000.