In a recent statement from COINOTAG dated February 6th, Katalin Tischhauser, the Head of Investment Research at Sygnum, provided an insightful analysis on the potential repercussions of the United States establishing a strategic Bitcoin reserve. Tischhauser has indicated that an influx of $1 billion could catalyze a multiplier effect, potentially escalating Bitcoin’s market capitalization substantially. Specifically, she noted that each incremental billion could enhance the market cap by approximately $20 billion, driven not only by direct inflows but also by a consequent price surge attributed to underlying supply constraints.
Tischhauser elaborated that the resulting demand shock, coupled with Bitcoin’s limited liquidity, is poised to trigger significant price dynamics. As she articulated, “Every $1 billion strategic reserve acquisition could yield a profound multiplier effect.” This phenomenon underscores the critical interplay of demand and supply within the Bitcoin market. Following initial inflows, the scarcity of available Bitcoin will likely compound price pressures, creating a tighter supply landscape with subsequent investments, leading to accelerated price appreciation.