TechFlow news, according to The Block, Katalin Tischhauser, Head of Investment Research at Swiss crypto bank Sygnum, released a new research report predicting that every $1 billion in funding for a potential U.S. strategic Bitcoin reserve could drive approximately $20 billion in market capitalization growth for Bitcoin through a multiplier effect. This projected 20x multiplier is based on observations during the 2024 period of capital inflows.
The report notes that due to Bitcoin's limited liquidity supply, new demand triggers significant upward price pressure, with $19 billion of the growth attributed to demand shocks and constrained supply dynamics. Tischhauser stated that the first and second rounds of $1 billion inflows would primarily absorb existing market demand, while the third and fourth rounds would encounter tighter supply conditions, accelerating price increases. Furthermore, net demand from various sources—such as state governments seeking reserve assets, large institutional investors allocating funds, and corporate treasury strategies—could amplify this market effect.
Notably, Trump has established a Presidential Working Group on Digital Asset Markets within his first week in office, one of whose tasks is to evaluate the feasibility of a U.S. strategic Bitcoin reserve.
