U.S. Senator Encourages People to Hold Bitcoin – Is a Bitcoin Strategic Reserve Coming?

Cynthia Lummis, who is arguably the most vocal Bitcoin advocate in the U.S. Senate, has encouraged people to buy Bitcoin and hold it over the long term to protect themselves against the debasement of the US dollar.

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“I encourage people to buy and hold. I encourage them to save Bitcoin for their retirement, for their future. And that’s because as the congress spends trillions and trillions of dollars and is flooding our economy and the world economy with US dollars, there’s no way that we can not debase the value of the US dollar.”

🇺🇸 Senator Lummis says, “I encourage people to buy and hold. I encourage them to save #Bitcoin for their retirement, their future.” pic.twitter.com/1vDp8giCSH

— Vivek⚡️ (@Vivek4real_) February 6, 2025

Senator Lummis is advocating for a U.S. Bitcoin strategic reserve with 1 million BTC

Senator Lummis has become increasingly prominent following Donald Trump’s victory in the U.S. presidential election, as the Trump administration has taken a much more positive stance towards crypto assets than the Biden administration. On January 23, Donald Trump signed an executive order establishing a working group on digital asset markets, and one of its goals is to evaluate the feasibility of the United States establishing a national digital asset stockpile. 

According to Senator Lummis, the United States should establish a strategic Bitcoin reserve and acquire a total of 1 million BTC over a span of five years. The reserves would be held for a period of 20 years.

🇺🇸 BULLISH: Senator Cynthia Lummis unveils a bold #Bitcoin reserve plan:

✅ Acquire 200,000 $BTC per year for 5 years.
✅ Hold the reserve for a minimum of 20 years.
✅ Goal: Cut U.S. national debt by 50% in two decades.

Could this strategy revolutionize America’s financial… pic.twitter.com/QGUKMMkbWB

— CoinCodex (@CoinCodex) January 28, 2025

Bitcoin’s long-term prospects are looking extremely bullish

Given the crypto-friendly administration in the United States and the increasing odds of countries adding Bitcoin to their reserves, it’s no surprise that sentiment on Bitcoin’s long-term prospects is at an all-time high.

Recently, Standard Chartered analyst Geoff Kendrick forecasted that Bitcoin could rise to $500,000 by the end of 2028, fueled by improvements to the accessibility of Bitcoin as an investment. 

Meanwhile, researchers using a flexible supply and demand equilibrium model suggested we could see Bitcoin trading as high as $1 million by mid 2028. 

The Bitcoin price prediction algorithm on CoinCodex is much more conservative, although it still forecasts a significant appreciation in the price of Bitcoin. According to this forecast, we’ll have to wait until 2040 to see BTC at a price of $1 million.