Jack Mallers says Trump could trigger Bitcoin supply shock on day one
Jack Mallers talks about potential supply shock on Bitcoin
Jack Mallers, CEO of Strike and prominent Bitcoin advocate, has made a bold claim that former President Donald Trump may use an executive order on his first day back in office to designate Bitcoin as a United States reserve asset.
The move, according to Mallers, could mark a seismic shift in global financial strategy.
Speaking on a podcast with YouTuber Tim Pool, Mallers suggested that Trump could rely on provisions within a "Dollar Stabilization Act" to authorize the purchase of Bitcoin for the U.S. Treasury.
"There’s potential to use a day-one executive order to purchase Bitcoin," Mallers said. While he clarified that the move wouldn’t involve acquiring 1 million BTC at once, it would still represent a "significant position."
Bitcoin Act of 2024 Could Spark $20 Billion BTC Buy
The potential move is tied to the Bitcoin Act of 2024, a proposal introduced by pro-crypto Senator Cynthia Lummis. The act aims to authorize the U.S. Treasury and Federal Reserve to purchase 200,000 Bitcoin annually over five years, amounting to 1 million BTC — approximately 5% of Bitcoin’s total supply.
If implemented, this strategy could drive a supply shock in the Bitcoin market, prompting analysts to forecast soaring prices. Perianne Boring, founder of The Digital Chamber, believes the move could push Bitcoin’s price to $800,000 by 2025, while PlanB’s stock-to-flow model sees a potential surge as high as $1 million.
BlackRock’s recent call for a 1-2% Bitcoin allocation in diversified portfolios further bolsters the idea of mainstream adoption. Should Trump’s administration follow through on the Bitcoin Act, it could catalyze a global shift as other nations move to include Bitcoin in their own reserve strategies. As Mallers stated, "The sky is the limit."
Eric Trump, son of U.S. President-elect Donald J. Trump, vowed at the Bitcoin MENA 2024 conference in the UAE that his father’s presidency would be the most crypto-friendly in U.S. history. He attributed the family's growing interest in cryptocurrency to financial institutions cutting ties with the Trump Organization following January 6, 2021.
