Summary
- It was reported that a strong demand shock is expected if the U.S. government holds Bitcoin as a strategic reserve asset.
- It was stated that every time the U.S. strategic Bitcoin holdings increase by $1 billion, the market capitalization of Bitcoin is expected to increase by more than $20 billion.
- It was added that since the liquid supply of Bitcoin is very small, a demand shock could lead to a tremendous ripple effect.
There is a forecast that a strong demand shock could occur if the U.S. government holds Bitcoin (BTC) as a strategic reserve asset.
According to The Block on the 6th (local time), Catalin Tihushauser, head of investment research at Sygnum, stated, "Every time the U.S. strategic Bitcoin holdings increase by $1 billion, the market capitalization of Bitcoin is expected to increase by more than $20 billion due to the multiplier effect."
He added, "The liquid supply of Bitcoin is very small. If a potential demand shock occurs, it will lead to a tremendous ripple effect."
YM Lee
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