Will the European Union Create Bitcoin Reserves? – Market Info

The cryptocurrency market continued its growth over the past two weeks, although it experienced a slight correction in recent days. Its total market capitalization decreased by over 3% in the last two weeks. Bitcoin’s dominance rose to 58.4%, while altcoins weakened their position in the market.

Source: Coinmarketcap

Will the European Union Create Bitcoin Reserves?

Member of the European Parliament, Sarah Knafo, called on the European Union in her Tuesday address to establish a strategic bitcoin reserve, rejecting the proposed adoption of the “digital euro,” a central bank digital currency (CBDC) being developed by the European Central Bank (ECB).

Knafo, a French magistrate and MEP since June, was the first member of the European Parliament to officially and publicly deliver a pro-bitcoin speech urging European lawmakers to initiate the creation of strategic BTC reserves.

“No to the digital euro, yes to a strategic bitcoin reserve,” Knafo later stated in a post on the social network X, which included a video of her speech in the European Parliament. She also stressed the need to stop the “totalitarian temptations” of the ECB and advocated for shifting away from regulatory overreach in cryptocurrencies towards embracing the decentralized and free nature of Bitcoin.

In her speech, Knafo compared cryptocurrency regulations worldwide, citing Bitcoin adoption in El Salvador (2021) and the agenda of the newly elected U.S. President Donald Trump’s administration, which appears to be strongly pro-crypto. The U.S. is even considering creating Bitcoin reserves, with a proposal to gradually accumulate up to 1 million BTC.

Knafo also noted that U.S. Federal Reserve Chairman Jerome Powell referred to Bitcoin as “digital gold” earlier in December. In contrast, Europe has taken a different approach to crypto regulation, focusing more on strict oversight, taxation, and stifling innovation, rather than supporting this groundbreaking and innovative sector, she claimed.

“We don’t want a dystopian world where a European bureaucrat could ban certain transactions tomorrow or even cut us off from the banking system with a mere social media comment or an opinion they dislike. It’s time to bet on freedom,” Knafo concluded in her speech. Source

Survey: 1 in 5 U.S. Voters Were Crypto Voters

A recent survey by Emerson College revealed that approximately 19% of surveyed U.S. voters had experience using cryptocurrencies before the election, with most of them holding a favorable view of newly elected President Donald Trump.

The survey, conducted among 1,000 registered voters between December 11 and 13, showed that nearly 40% of cryptocurrency users had made a purchase using crypto at some point.

The survey also highlighted that crypto users tend to be younger and more diverse, showcasing that cryptocurrencies represent a growing and varied demographic for political support, 57% of crypto users expressed a positive view of Donald Trump.

During his campaign, Trump heavily focused on supporting the crypto industry, and after his election victory, he began fulfilling his promises. For example, Trump has nominated numerous pro-crypto officials to lead key financial government institutions, including the Securities and Exchange Commission (SEC).

According to the Emerson survey, respondents under 40 made up the largest percentage of cryptocurrency users. Survey director Spencer Kimball added that this number decreases with age. Kimball also noted that men use cryptocurrencies twice as often as women, with 26% of men and 13% of women reporting crypto use. Around one-third of crypto users surveyed were Asian, Hispanic, or Black. Source

Ohio and Bitcoin Reserves

A proposed bill in the U.S. state of Ohio could allow Bitcoin to be included in the state’s reserves. Known as “House Bill 297,” the proposal was introduced by Republican Representative Chris Jordan. If passed, it would permit the state to invest part of its reserves in Bitcoin through a managed investment fund.

Chris Jordan emphasized that Bitcoin represents a secure and decentralized asset that can serve as a hedge against inflation. His proposal also responds to the growing trend of cryptocurrency adoption in the private sector.

Although the bill is still in its early stages, its approval could be a significant step toward broader Bitcoin and cryptocurrency adoption at the public finance level. Ohio could become the first state in the U.S. to officially hold Bitcoin as part of its reserves.

This move, however, might face opposition from more conservative politicians and financial regulators, who warn of risks associated with cryptocurrency volatility. Nevertheless, it signals that cryptocurrencies are gradually entering public structures and becoming a legitimate part of the financial system. Source

Bitcoin at $200,000 by 2025?

According to analysts from the cryptocurrency exchange Bitfinex, Bitcoin’s price could reach $200,000 by the first half of 2025. This prediction is based on the current market cycle and historical trends before and after Bitcoin halvings, the most recent of which occurred in April 2024.

Analysts anticipate that Bitcoin’s price will begin to rise significantly in the year following the halving due to reduced issuance of new bitcoins. During this period, there may be minor corrections, but the long-term trend is expected to move towards higher price levels. Bitfinex also highlights growing institutional interest in Bitcoin, which could further strengthen its position.

Despite the optimistic forecast, analysts caution against potential risks such as regulations or market volatility. While reaching the $200,000 mark is ambitious, previous cycles have shown that the crypto market can be highly unpredictable and surprise even the most experienced investors.

If this prediction comes true and Bitcoin reaches $200,000, it would rank among the top three most valuable assets globally. However, for Bitcoin to reach gold’s market capitalization, its price would need to rise to approximately $900,000. Source

Trump Predicts Bitcoin at $1 Million

Eric Trump, son of recently elected U.S. President Donald Trump, recently stated that Bitcoin’s price could reach $1 million. Eric spoke at the Bitcoin MENA event in Abu Dhabi on December 10, where he praised Bitcoin as a new financial paradigm and a global asset.

In his speech, Eric emphasized that Bitcoin is not just another asset or investment but a store of value and a hedge against inflation. According to him, Bitcoin serves as protection against political unrest, instability, acts of God, hurricanes, fires, floods, or tornadoes. “That’s what makes it so powerful,” he added.

Eric also highlighted Bitcoin’s decentralized nature, which eliminates the need for intermediaries, unlike “tens of thousands of bankers” who issue loans at exorbitant fees.

Eric Trump is not alone in predicting that Bitcoin could surpass the $1 million price mark. Prominent Bitcoin advocates like Michael Saylor from MicroStrategy and Cathie Wood from ARK Invest have also emphasized Bitcoin’s potential to reach such a valuation.

Despite the optimistic outlook, this prediction remains controversial. Critics point to risks associated with market volatility and regulatory interventions, which could impact Bitcoin’s further growth. Whether this vision materializes remains to be seen. What is certain, however, is that Bitcoin continues to captivate the attention of not only investors but also prominent public figures. Source

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