Attorney Jeremy Hogan, a prominent figure in the XRP community, recently outlined two key developments that may lead to sustained growth in Bitcoin’s price.
Following the recent U.S. election, the cryptocurrency sector has seen renewed investor enthusiasm, with the digital asset surging to an impressive $89,956 a week after the election.
Hogan, a partner at Hogan & Hogan law firm and a known advocate for XRP, highlighted two major factors he believes could significantly improve the asset’s performance.
Government Adoption as a Catalyst
One of the factors Hogan highlighted is the prospect of heightened government involvement in cryptocurrency.
The recent election, which saw the Republican Party and several pro-crypto lawmakers win both the Senate and the House, set the stage for favorable crypto policies under a supportive administration.
With over 200 pro-crypto legislators now in office, Hogan suggests that Bitcoin-related legislation may gain significant momentum.
A notable piece of proposed legislation gaining attention is the Bitcoin Purchase Program, which, if passed, would authorize the U.S. government to buy up to 200,000 BTC annually for the next five years, totaling one million BTC. This acquisition would represent roughly 5.05% of the asset’s current circulating supply of 19.78 million.
Additionally, the bill includes provisions for the acquired Bitcoin to be held by the U.S. Secretary of State for at least 20 years, which aims to ensure long-term stability for both the government and the broader crypto market.
Hogan noted that if this legislation is approved, it could set a precedent, prompting other nations to explore similar accumulation strategies. Such a move could intensify demand for the token globally, leading to potential price increases and solidifying its position as a government-backed asset.
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Institutional Adoption and Corporate Interest
According to Hogan, Institutional involvement is another key factor that could drive the asset’s upward trajectory.
Hogan pointed out that MicroStrategy, a leading business intelligence firm, increased its Bitcoin holdings immediately after the election, possibly in response to insider knowledge regarding the U.S. government’s proposed acquisition plans.
On November 11, MicroStrategy announced a significant purchase of 27,200 BTC, amounting to a $2.03 billion investment at an average price of $74,463 per BTC.
With this purchase, MicroStrategy now holds a total of 279,400 BTC, valued at approximately $25.16 billion at the current price of $90,106. This strategic investment has yielded MicroStrategy a 111.4% return on investment, highlighting the potential profitability of the token as a corporate asset.
Hogan suggested that MicroStrategy’s substantial profit from the token could create pressure on other companies with large cash reserves, such as Microsoft, to consider similar investments.
As more corporations recognize the value of holding Bitcoin as part of their treasury strategies, the demand could rise significantly, contributing to a sustained rally.
Hogan’s insights show the potential impact of both governmental and institutional adoption of Bitcoin and the critical roles they will play in driving the asset’s growth over the coming months and years.
With new legislation favoring cryptocurrency and corporate interest intensifying, Hogan envisions a sustained upward trend for the digital asset, marked by increased adoption and greater demand.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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