The Bitcoin Policy Institute (BPI) has revealed how a single US government policy decision could potentially catapult Bitcoin’s price to an unprecedented $1 million level. This groundbreaking analysis comes amid growing institutional adoption of Bitcoin and increasing concerns about US Treasury stability.
The Strategic Bitcoin Reserve Initiative
According to BPI Executive Director Matthew Pines, the global monetary framework has remained largely unchanged since 1973. However, the emergence of new economic powers like China has begun challenging the dollar-based system’s stability. This shifting landscape has created an opportunity for Bitcoin to emerge as a strategic reserve asset.
Gold-to-Bitcoin Conversion Strategy
A key proposal involves “marking gold to market” – revaluing America’s statutory gold price from $42 to current market rates around $3,200 per ounce. This adjustment could generate a massive Treasury surplus that could be strategically invested in Bitcoin.
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Price Implications and Global Impact
BPI’s Head of Policy Zach Shapiro projects that a US government Bitcoin purchase of one million BTC could trigger a “global seismic shock,” potentially pushing prices to $1 million per coin. This move could also accelerate Bitcoin’s monetization timeline and impact traditional reserve assets like gold.
FAQ Section
What is the Strategic Bitcoin Reserve?
A White House initiative formalized in March 2025 requiring federal agencies to audit their Bitcoin holdings and explore budget-neutral acquisition methods.
How would the US fund Bitcoin purchases?
Proposed methods include tariff revenues and selling existing government assets, ensuring budget neutrality.
What are the potential risks?
Implementation challenges include internal government debates and potential market volatility during the acquisition phase.
At press time, Bitcoin trades at $83,594, as markets digest these potentially transformative developments.