In a recent statement, U.S. Senator Cynthia Lummis announced that President Donald Trump is supporting her bill to purchase 1 million Bitcoin for a strategic U.S. reserve. 15 This endorsement, shared during discussions at the Bitcoin for America conference, highlights the administration’s commitment to cryptocurrency as a key asset for national financial strategy. The crypto community is reacting with enthusiasm to this development in the market.
With Bitcoin trading at approximately $113,846 as of August 22, 2025, this bill could represent a major step in U.S. cryptocurrency policy, potentially driving further adoption and price growth. Let’s break down the details of Lummis’s announcement, the bill’s implications, and what it means for the crypto ecosystem.
Key Details of Lummis’s Announcement
Senator Cynthia Lummis, a leading advocate for cryptocurrency in Congress, revealed Trump’s support for her BITCOIN Act during an event focused on advancing Bitcoin policy. 11 The key elements include:
- Presidential Backing: Lummis stated that President Trump is fully behind the proposal to acquire 1 million Bitcoin over five years, aligning with his executive order for a strategic Bitcoin reserve.
- Bill Overview: The BITCOIN Act directs the U.S. government to purchase Bitcoin equivalent to 5% of global supply, storing it securely as a long-term asset to bolster economic security.
- Broader Support: The bill has garnered co-sponsors from several Senate Republicans and ties into Trump’s vision of making the U.S. the crypto capital of the world.
This support comes amid Lummis’s efforts to integrate Bitcoin into national reserves, similar to gold holdings, to protect against economic uncertainties.
Context: The BITCOIN Act and U.S. Crypto Policy
The BITCOIN Act, introduced by Lummis in March 2025, aims to create a strategic Bitcoin reserve by acquiring 200,000 BTC annually for five years. 12 This would position the U.S. as one of the largest sovereign Bitcoin holders, surpassing current leaders like El Salvador. Trump’s endorsement, as confirmed by Lummis, builds on his administration’s pro-crypto initiatives, including the Digital Asset Market Clarity Act and the GENIUS Act for stablecoins.
This announcement follows recent market trends, such as the New York State Common Retirement Fund’s 143% Bitcoin exposure increase and Goldman Sachs’ $1.558 billion in ETF holdings, indicating growing institutional confidence.
Why This Matters for Bitcoin and Crypto Markets
Trump’s support for the bill could have profound effects:
- Policy Advancement: With presidential backing, the bill has a higher chance of passing, potentially by year-end 2025, providing regulatory clarity and encouraging further institutional investment.
- Market Boost: Acquiring 1 million Bitcoin would add massive demand, tightening supply (450 coins daily post-2024 halving) and potentially pushing prices toward forecasts like $180,000-$200,000 by year-end.
- Global Implications: This move could inspire other nations, like Brazil with its $19 billion reserve proposal, accelerating worldwide sovereign adoption.
- Investor Sentiment: The endorsement reinforces Bitcoin’s narrative as a strategic asset, boosting confidence amid trends like corporate treasuries (e.g., Ming Shing Group’s $483 million BTC purchase).
Current Bitcoin Market Overview
As of August 22, 2025, Bitcoin is trading at $113,846, down 1.9% in the last 24 hours but up significantly year-to-date. The market is supported by:
- Institutional inflows from pension funds and ETFs.
- Regulatory progress, such as the U.S. Digital Asset Market Clarity Act and the Fed’s banking framework for crypto services.
- Global developments, including Buenos Aires accepting crypto for taxes and sovereign funds increasing exposure.
The FOMC minutes’ dovish tilt on August 20, 2025, boosts rate cut odds, benefiting risk assets like Bitcoin.
Implications for Investors
Lummis’s announcement offers key considerations for crypto investors:
- Potential Upside: Trump’s support could drive legislative success, leading to substantial price growth for Bitcoin.
- Volatility Risks: Short-term swings may occur, especially with today’s Initial Jobless Claims report at 8:30 a.m. ET, which could influence Fed decisions.
- Secure Practices: Use regulated platforms like Coinbase or Kraken, and store assets in hardware wallets.
- Diversification: Consider ETFs like BlackRock’s IBIT for exposure without direct ownership risks.
Final Thoughts: A Major Step Toward U.S. Bitcoin Reserve
Senator Cynthia Lummis’s revelation that President Trump supports her bill to buy 1 million Bitcoin marks a significant advancement in U.S. cryptocurrency policy. As institutional and regulatory support grows, this development could reshape the financial landscape. Investors should monitor legislative progress closely.
Stay tuned for updates on Bitcoin price movements, policy developments, and more crypto insights as this story evolves.
Disclaimer: This article is for informational purposes only and not financial advice. Cryptocurrency investments carry risks.