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Attorney Jeremy Hogan discusses the recent developments surrounding Bitcoin, highlighting two major factors that could pave the way for a sustained rally.
The price of Bitcoin has surged tremendously following the conclusion of the United States election, which saw the emergence of a pro-crypto president and over 200 lawmakers. With investors enthusiastic about cryptos’ prospects under the forthcoming administration, Bitcoin rallied to $89,956 a week after the election.
2 Factors That Could Drive Government and Institutional Bitcoin Adoption
Reacting, Attorney Jeremy Hogan, a partner at Hogan & Hogan law firm and pro-XRP lawyer, provided an overview of Bitcoin’s recent performance, suggesting that the premier crypto asset could see big gains in the coming months.
What's UP with Bitcoin recently?
Two things:
First, Trump's win, PLUS the Republicans winning both the Senate and the House (just official yesterday), PLUS some support from a handful of Democrats now, means that the U.S. "Bitcoin Purchase Program" seems likely to pass next… pic.twitter.com/TSJNgXMliu
— Jeremy Hogan (@attorneyjeremy1) November 12, 2024
He highlighted two factors that could drive government and institutional investments in Bitcoin, leading to a massive surge in BTC’s price.
Government Adoption
Attorney Hogan referenced the recent election result, which led to Trump’s victory and the Republican Party, with more pro-crypto lawmakers, winning the Senate and the House.
The pro-XRP lawyer suggested that with additional support from the Democratic Party, there is a high likelihood that the United States ‘Bitcoin Purchase Program’ legislation might pass next year.
For context, the legislation proposes that the U.S. government purchase not more than 200,000 BTC yearly over five years, bringing the total acquisition to 1 million BTC. This represents about 5.05% of Bitcoin’s 19.78 million circulating supply.
The legislation recommends that the U.S. Secretary of State holds the acquired Bitcoin for at least 20 years to ensure long-term stability.
Interestingly, Hogan emphasized that if the bill passes, it will potentially influence other countries to accumulate Bitcoin, thus driving the asset’s price significantly.
Institutional Adoption
Notably, Hogan claimed that MicroStrategy, which had a hint about the bill, embarked on a Bitcoin accumulation spree immediately after the election. Recall that MicroStrategy announced a purchase of 27,200 BTC worth $2.03 billion on November 11. According to MicroStrategy, the average cost of each BTC was $74,463.
Currently, MicroStrategy holds 279,400 BTC, costing $11.9 billion. At the current price of $87,363, MicroStrategy’s Bitcoin portfolio is worth about $24.41 billion, representing a 105% ROI.
Given MicroStrategy’s enormous profit, Hogan speculated that companies with excess cash reserves, like Microsoft, might face intense pressure from shareholders to invest in Bitcoin as well.
Finally, Hogan envisages a future where Bitcoin could see a sustained rally driven by a combination of institutional and government-backed BTC investments.