The powers that be in the U.S. seem to be plotting a way to use Bitcoin to create demand for dollars and, by extension, U.S. Treasuries—a modern-day petrodollar, aka the bitcoin-dollar.

If the U.S. sets up a strategic Bitcoin reserve and sparks nation-state adoption while USD-denominated Bitcoin is the deepest and most liquid market, while 30-40% of new coin issuance is US based - priced in dollars, it would mean other nation-states scrambling to buy massive amounts of BTC will need progressively larger amounts of dollars.

Stablecoins will play a big part; as stablecoin usage rises due to increased demand, they will purchase more treasuries as collateral. Tether is already the 19th largest holder of U.S. Treasury debt.

⬆️ BTC demand -> ⬆️ dollar demand -> ⬆️ treasury demand = lower borrowing cost and solvency for the US Gov.

Contrary to most of the FUD from the last cycle, it seems the U.S. government has a major incentive to facilitate BTC price appreciation! This means the strategic Bitcoin reserve will happen; this cycle could be insane.