U.S. Senator Suggests Government Acquire 5% of Bitcoin Supply, Sparking Market Volatility Concerns

According to Odaily, U.S. Senator Cynthia Loomis has proposed that the government acquire 5% of Bitcoin’s total supply. This suggestion has triggered speculation about potential market instability, with mixed reactions from analysts and investors.Ben Simpson, CEO of Collective Shift, commented on the proposal, predicting a significant impact on market dynamics. Simpson anticipates a surge in Bitcoin’s price, followed by a pullback. He expects Bitcoin’s dominance in the crypto market to decline and stabilize around $100,000, while altcoins begin to climb, signalling the start of a market rotation. However, he cautions that the transition to a full-fledged altcoin season is unlikely to occur immediately.