Co-owner of the law firm Hogan&Hogan Jeremy Hogan named the reasons why Bitcoin could continue its steady growth in the coming months.
The lawyer cited Donald Trump’s victory in the US presidential election and the predominance of Republican lawmakers in the Senate and House of Representatives. The lawyer suggested that with the support of Democrats, there is a high probability that the bill on the bitcoin government purchase program could be passed as early as next year.
According to the bill, the US government would buy up to 200,000 BTC per year for five years until the total number of BTC in government possession reaches 1 million coins. This would be about 5.05% of the 19.78 million bitcoins currently in circulation. The US Secretary of State would be required to hold on to the purchased bitcoins for at least 20 years to ensure the long-term stability of the cryptocurrency, the bill says. If the bill passes, other countries would follow the US example and start hoarding bitcoins, increasing the value of the crypto asset, Hogan hopes.
Another factor that could drive the sharp rise in the BTC price is the influx of capital from corporate investors into the crypto market. Hogan mentioned MicroStrategy, which recently purchased another 27,200 bitcoins worth $2.03 billion at an average price of $74,463 per coin. MicroStrategy currently holds 279,400 BTC worth $11.9 billion. Hogan is confident that companies with excess cash reserves, such as Microsoft, will soon face intense pressure from shareholders who are eager to invest in bitcoin.
The US Securities and Exchange Commission (SEC) may stop litigating crypto companies that are not related to fraud next year, according to a lawyer.
