Senator Cynthia Lummis believes Bitcoin has the potential to cut the U.S. national debt in half over the next 20 years.
Speaking at the DC Blockchain Summit, Lummis emphasized that Bitcoin’s scarcity, immutability, and storability make it a strong long-term asset for national stability. “If we hold for 20 years — according to the best available models — we could reduce our national debt by half,” she said, referring to the country’s eye-popping $36 trillion debt.
Saylor and Lummis push for Bitcoin as America’s strategic reserve
Strategy’s CEO, Michael Saylor, also sparked discussion at the summit, going so far as to say during his discussion with Lummis that Bitcoin is the “Manifest Destiny for the United States of America.”
Lummis also argued for creating a Bitcoin strategic reserve, stressing that it should be treated similarly to current national reserves. “We have a strategic oil reserve, we have a strategic gold reserve, we have a strategic cheese reserve. Bitcoin is digital gold,” she said.
Lummis also pointed out this classic way of the government converting mineral wealth into cash possessed by the government, which then invests it into diversified assets that still generate cash. She views Bitcoin as a next-generation answer to an ancestral monetary problem. “I’ve kind of been looking for the Bitcoin strategic reserve my whole life,” Lummis added, clarifying that she believes it’s Bitcoin that will shape the country’s economic destiny.
Saylor’s endorsement of Bitcoin as a strategic asset resonated beyond the summit. Within an hour of his statement being posted on X, Bitcoin saw a 0.11% increase, reaching $87,273.47. The asset’s market capitalization grew by 0.09% at press time.
The market’s reaction indicated a big change in sentiment, with the Fear and Greed Index rising from a complacent 50 to a “Greed” status of 65. Witnessing this in such a short timeframe demonstrates Bitcoin’s impact not just beyond political discourse but also in terms of market dynamics.
Saylor stands firm on $13 Million Bitcoin prediction, calls it the ultimate store of value
Just recently, Saylor doubled down on his claim that Bitcoin’s price will go to $13 million over 20 years. While addressing the Digital Asset Summit, Saylor emphasized Bitcoin’s unique qualities as a scarce digital commodity, arguing that no other asset can compare.
“I can stand here and I can tell you that I think the price of Bitcoin will go to $13 million over 20 years. I couldn’t say that about a security, right?” Saylor declared, highlighting Bitcoin’s legal status as a commodity rather than a security.
According to Saylor, Bitcoin is the only asset immune to human corruption. He refers to its origin as a product of what he calls an “immaculate conception.” He noted that, unlike traditional commodities like gold or oil, which can be extracted in greater quantities when prices rise, Bitcoin has a fixed supply of 21 million coins, making it the ultimate store of value.
Bitcoin bears seize opportunity as bullish bets weaken ahead of $16.5B options expiry
On March 28, bitcoin investors are preparing for the all-time high $16.5 billion monthly options expiry. Despite this, the real impact on the market would be low, with BTC dropping below $90,000 before blindsiding investors and invalidating many bullish positions.
This transition offers Bitcoin bears a key chance to avoid a potential $3 billion loss, which may exert considerable pressure on the markets in the weeks ahead.
The open interest in call (buy) options is $10.5 billion, while the open interest in put (sell) options is $6 billion. However, $7.6 billion worth of those calls are for prices of $92,000 or higher, requiring Bitcoin to rise 6.4% from its current value to become profitable before the March 28 expiry. This has greatly reduced the edge for bullish bets.
Some analysts cite the ongoing global tariff war and the US government spending cuts that risk sending the economy into a recession as impacting Bitcoin’s price. Traders are concerned about slower growth—especially in the artificial intelligence space, which sent the S&P 500 to a record high on Feb. 19 only to dip 7%.
The 40-day correlation has been above 70% since early March, but for the bulls, Bitcoin is still due for a decoupling from the stock market. This is driving optimism across the board, fueled by central banks expanding the monetary base and companies such as GameStop (GME), Rumble (RUM), Metaplanet (TYO:3350) and Semler Scientific (SMLR) adding Bitcoin to their balance sheets
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