- Robert F. Kennedy Intends to Have Fed Match Gold Holdings with Bitcoin Holdings, If Elected
- $600 Billion of Potential Liquidity Injected into Bitcoin Could Have Major Impact
Bitcoin Foreign exchange reserves are once again in the spotlight as the political temperature in the United States heats up. This time, another US presidential candidate, Robert F. Kennedy, has spoken out and expressed interest in BTC being a reserve asset.
Kennedy, an independent presidential candidate, recently revealed that he is pro-Bitcoin. Just like his rival Trump, he is in favor of the idea of having Bitcoin reserves on the Federal Reserve’s balance sheet. In fact, Kennedy also has an ambitious idea that, if implemented, would be a pretty interesting development for the cryptocurrency market.
Kennedy reportedly said that if elected, he would encourage the Federal Reserve to go on a Bitcoin buying spree. revealed that one of his goals during his term would be to ensure that the United States accumulates enough Bitcoin to match its gold reserves.
“I would like the federal government to start buying Bitcoin and eventually have an amount of #Bitcoin equivalent to gold within my term.”
$622 billion in inflows into Bitcoin reserves?
The latest update on US gold reserves suggests that the country has around 8,133.46 metric tons of gold. A kilogram of gold gold was valued at $76,708.36 To put it simply, the total value of gold held by the United States is approximately $622 billion.
At the time of writing, Bitcoin’s market cap is $1.32 trillion, and an additional $622 billion would bring that number to over $1.64 trillion. That would give Bitcoin a value of over $82,000 and a fully diluted price of around $78,000. This would be assuming that the only liquidity flowing into Bitcoin at that time would come from the government.
In fact, demand for Bitcoin from the US government could also encourage greater demand globally. As a result, more liquidity could potentially flow into the cryptocurrency.
If the United States matches its Bitcoin reserves with its gold reserves, BTC would only represent about 2.16% of current US GDP.
What are the chances?
The probability of Bitcoin becoming an asset of the U.S. Federal Reserve is now higher than ever before. Largely driven by political aspirations, Trump also expressed interest I’m going down this road.
While all of this remains possible, the chances of favorable policy and outcomes for Bitcoin in the coming years are promising.
Politics is also about promises that are often not kept. So there is no guarantee that the Fed’s Bitcoin reserves will ever become a reality.