Lummis Suggests US Buy 5% of Bitcoin Supply: What It Means for the Market?

Senator Lummis’ Bitcoin Supply Plan: Could the US Buy One Million BTC?

According to a recent Cointelegraph report, Senator Cynthia Lummis of Wyoming, a Republican and Trump supporter, declared she would proceed with legislation requiring the US government to purchase one million Bitcoin and hold it for a minimum of 20 years following Trump’s victory in the presidential election on November 5. If Senator Lummis’ plan for the US government to purchase 5% of Bitcoin’s supply is approved, a cryptocurrency analyst says it could lead to short-term price volatility.

I expect it to be pretty volatile, especially if the strategic Bitcoin reserve gets approved; I think Bitcoin will pump then probably rotate back,

Collective Shift founder and CEO Ben Simpson

Bitcoin Dominance Dips 7.2% in 30 Days: Analysts Anticipate Altcoin Surge

Regarding the current condition of the market, Simpson thinks that Bitcoin dominance, which is a gauge of how much of the entire value of the cryptocurrency market is made up of BTC, will start to decline. In fact, he thinks that the shift to altcoins has already started as Bitcoin began to stabilize at about $100,000 and altcoins began to rise. According to TradingView data, Bitcoin dominance is 56.63% at the time of publication, down 7.20% over the last 30 days.

On December 13, cryptocurrency trader Momin stated that they anticipate this decline in dominance to continue and that alts may have a strong run in the upcoming week. However, according to Simpson, the shift to altcoin season won’t be that simple.

I think it will be pretty volatile; I don’t think it will be straight into altcoin season,

Simpson

Bitcoin Remains a Strong Investment Despite Altcoin Struggles, Say Bitfinex Experts

According to Bitfinex experts who spoke to Cointelegraph, Bitcoin has consistently been a profitable and competitive investment, even when compared to altcoins, as seen by the fact that many altcoins have not yet surpassed new all-time highs in terms of their return against Bitcoin.

We believe that even post any pull back, Bitcoin will continue to be part of the portfolio of major institutions and that interest in Bitcoin will continue to grow,

Bitfinex analysts

Since Bitcoin is trading above six figures, Bitfinex analysts predicted that any future declines would be brief and could present an opportunity for investors to buy.

At a price of 100K, there has continued to be sufficient spot buying to sustain this level, and currently, leverage levels are reasonable, so even if a dip occurs, which won’t be surprising during the holiday season, the price trend is healthy and shows reasonable strength in the market for any dip to be bought. Believers in Bitcoin are also becoming more adamant about the asset being a perfect substitute for gold and a true store of value,

Bitfinex analysts

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