Bitcoin Strategic Asset Failure Throws Crypto Market into Chaos

- Cancellation of Bitcoin Strategic Asset Bill Causes Cryptocurrency Prices to Plummet - Significant Drop in Bitcoin and Ethereum Prices on New York Stock Exchange [Unblock Media] The automatic cancellation of the 'Bitcoin 2024 Strategic Asset Bill,' introduced by Senator Cynthia Lummis, due to the end of the session in the U.S. Senate has resulted in a sharp decline in the prices of Bitcoin and Ethereum on the New York Stock Exchange. This downturn was primarily because investors who had expected the bill to positively impact the cryptocurrency market faced a major setback. CryptoQuant stated that weakened investor sentiment in the cryptocurrency market is a major factor in this crash. The Bitcoin Strategic Asset Bill included measures where the Federal Reserve would annually purchase up to 200,000 Bitcoins and hold them for at least 20 years. It also required the Federal Reserve to reduce the surplus dollar amount in its reserve account and use part of its net profit to purchase Bitcoin. These measures had been driving the value of Bitcoin upwards. However, the bill's cancellation occurred due to insufficient legal basis as the 118th Congress concluded on December 31, 2024. Unless reintroduced in the new 119th Congress session, the bill will not be considered. The lack of legislative momentum and political interest were cited as reasons for the automatic cancellation of Senator Lummis's Bitcoin bill. Experts assess the likelihood of reintroduction in the next Congress as low. President-elect Trump has declared an intention to designate Bitcoin as a strategic asset, though many view this as a strategy to win votes. Trump's comments in a CNBC interview were seen more as a general vision rather than a specific actionable plan, and there is skepticism regarding its implementation once he takes office. CryptoQuant’s CEO, Joo Ki-young, believes that the need to reserve Bitcoin is low given the U.S. economy and the dollar still hold strong positions. In Japan, Congressman Satoshi Hamada proposed introducing Bitcoin as a national strategic asset, arguing that Bitcoin’s scarcity and decentralization could create a fairer financial environment. This aligns with similar discussions in countries such as the United States, Russia, and Argentina. On the other hand, Vancouver in Canada is exploring the use of Bitcoin for city financial operations. Following the passage of a bill aiming to make Vancouver a Bitcoin-friendly city, the city is considering accepting taxes and fees in Bitcoin and holding part of its reserve in Bitcoin. These policies in Japan and Canada illustrate the diverse possibilities for utilizing Bitcoin. As for Ripple (XRP), its price surged significantly after SEC Chairman Gary Gensler announced his resignation. This rise is attributed to expectations that Gensler’s departure will lead to a relaxation of strict regulations, which could change the SEC's stance on classifying XRP as a security and imposing penalties, thus improving the outlook for Ripple.