Bitcoin has rebounded sharply to over $100,000 after falling to $91,000 yesterday. The impressive recovery continues to strengthen investors’ confidence in Bitcoin’s long-term potential, especially amid new moves from the US government that could have a positive impact on the cryptocurrency market.
In a surprise move, former President Donald Trump signed an executive order directing the government to establish a sovereign wealth fund. Many believe that this move could pave the way for the US government to purchase Bitcoin as a strategic asset.
The order was signed during an event on February 3, in which President Trump tasked Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick to “initiate the process of establishing a sovereign wealth fund of the United States.” According to Bessent, the order will be implemented within the next 12 months and aims to “monetize a portion of the assets on the US balance sheet.” This could include investing in Bitcoin or other digital assets as a way to diversify the national reserves.
Wyoming Senator Cynthia Lummis, a strong Bitcoin advocate, has suggested that the sovereign wealth fund could be used to buy BTC. Additionally, Wayne Vaughan, a cryptocurrency activist who has called for the US government to establish a strategic Bitcoin reserve, has also noted that both Bessent and Lutnick are bullish on Bitcoin. This raises the possibility that the sovereign wealth fund could become one of the first major US government entities to invest in cryptocurrencies.
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If this becomes a reality, it would be a major turning point, not just for Bitcoin but for the entire digital asset market. A government-level adoption could push Bitcoin’s value to new heights, while also reinforcing the confidence of major financial institutions in the asset class.
