A cryptocurrency analyst warned that if the highly anticipated U.S. Bitcoin Strategic Reserve Bill is passed, Bitcoin's price may face volatility.
A cryptocurrency analyst warned that the proposal by Senator Lummis for the U.S. government to acquire 5% of the Bitcoin supply, if approved, could lead to increased price volatility in the short term.
Ben Simpson, founder and CEO of Collective Shift, told Cointelegraph: "I expect it to be very volatile, especially if the strategic Bitcoin reserve is approved; I think Bitcoin will go up and then possibly pull back."
Bitcoin's dominance will "begin to decline"
Cointelegraph recently reported that after Trump won the presidential election on November 5, Wyoming Senator Cynthia Lummis—a supporter of Trump, Republican, and cryptocurrency advocate—stated that she would push for legislation for the U.S. government to purchase 1 million Bitcoins at $101,749 and hold them for at least 20 years.
Regarding the current market conditions, Simpson believes Bitcoin's dominance (a measure of how much of the total value of the cryptocurrency market is represented by BTC) will "begin to decline," and that the "rotation" to altcoins has "actually begun" as Bitcoin starts to consolidate around "$100,000" and altcoins begin to "rally."
According to TradingView data, as of the time of writing, Bitcoin's dominance is 56.63%, having dropped 7.20% in the past 30 days.
Cryptocurrency trader Momin told his 140,000 X followers on December 13 that they "expect this dominant downward trend to continue and may see altcoins perform quite strongly in the coming week."
However, Simpson believes that entering altcoin season will not be that simple.
"I think market volatility will be significant; I don't think it will directly enter altcoin season," he added.
