The price of Bitcoin has seen a significant surge recently, coming close to $80,000. The increase represents a gain of about 20% in comparison to last week’s figures. In addition to Bitcoin’s ascent, lesser cryptocurrencies have also escalated in value with Ethereum going up by 30%, Dogecoin by 50%, and Cardano by 70%.
Rumors are rife in the market about a nation silently gathering Bitcoin. This claim was indirectly corroborated by David Bailey, CEO of Bitcoin Magazine’s publishing company, Bitcoin Inc. who mentioned that at least one nation-state is actively obtaining Bitcoin and now amongst the top five holders.
Such conjectures have been around for years; however, they gained momentum after the adoption of Bitcoin as a legal tender by El Salvador and Bitcoin mining strategies in Bhutan. Claims about Qatar buying Bitcoin worth billions of dollars also fueled the speculation.
President-elect Donald Trump’s pledge to shape the U.S. into the global hub of cryptocurrency and establish a Bitcoin reserve has also fanned these theories. Cynthia Lummis, U.S. senator, introduced The Bitcoin Act to Congress in July, which articulates the creation of a Bitcoin reserve aimed at curbing the escalating national debt of the U.S. This would involve purchasing one million Bitcoin over a span of five years.
Meanwhile, in Pennsylvania, a crypto bill has been passed that establishes regulations surrounding Bitcoin and other cryptocurrencies. The law intends to secure people’s rights to self-custody and clarify rules about taxing Bitcoin transactions.