“Strategy’s 555,000 BTC remains untouched with no intention to sell, resulting in an annual deflation rate of -2.23% — a figure which might increase with the involvement of other stable institutional holders,” Ju noted in a post dated May 10.

Michael Saylor, co-founder of Strategy, is a vocal Bitcoin proponent who has successfully convinced several companies to incorporate a Bitcoin treasury plan. Saylor’s advocacy has not only elevated the profile of the digital currency but also constricted the supply of available Bitcoins, consequently pushing up BTC prices and reducing market volatility.

Besides its role in advocacy, Strategy also bridges the gap between Bitcoin and traditional finance markets. By selling corporate debt and equity, Strategy channels funds from traditional finance investors into Bitcoin, enabling further BTC purchases. Saylor revealed that more than 13,000 institutions have direct investments in Strategy stocks.

Adam Livingston, author of “The Bitcoin Age and The Great Harvest,” recently suggested that Strategy is effectively causing a halving in Bitcoin by surpassing miner supply through high demand. As per Livingston, Strategy accumulates about 2,087 BTC daily, which is over four times the daily output of miners, estimated at 450 BTC.

Institutions such as hedge funds, pension funds, asset managers, and tech companies continue to acquire BTC either as a portfolio diversifier or a treasury asset to hedge against potential inflation of fiat currency.

Meanwhile, ETF inflows have contributed to Bitcoin’s price stability by infusing new capital from traditional financial markets, thus tempering the cryptocurrency’s volatility and softening the blow of downturns. However, Anthony Scaramucci, founder of SkyBridge, opines that significant institutional players, such as sovereign wealth funds, will significantly invest in Bitcoin only after comprehensive cryptocurrency regulations are implemented in the United States.

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Scaramucci, who previously served as the White House director of communications during the initial term of former US President Donald Trump, shared these insights on Anthony Pompliano’s podcast on May 8. He emphasized that SWFs are subtly gaining exposure to Bitcoin. “I believe they are buying it, but they are doing so cautiously,” stated Scaramucci.

Scaramucci anticipates that the US government will propose crypto-specific legislation in November, as he had previously mentioned in an interview with the Financial Times in February. He further stated, “I don’t foresee a massive wave of buying until we get the green light for regulation in the United States.”

SWFs are state-owned investment entities that manage national savings, typically generated from surplus revenues such as trade gains or profits from oil. Norway has the world’s largest SWF, managing around $1.73 trillion in assets, with China following closely with $1.33 trillion, based on data from Visual Capitalist.

As per CoinMarketCap, Bitcoin’s market cap is approximately $2.05 trillion. Scaramucci believes that if regulations for stablecoin are approved, traditional banks are given clear guidance for Bitcoin and other digital assets custody, and progress is made on tokenizing stocks and bonds, a significant wave of buying from SWFs can be expected.

Scaramucci predicted, “If that happens, we will see large-scale purchases, with entities worth 10, 20, 30 trillion dollars buying half a billion dollars of Bitcoin, or even a billion.” He added, “But if you want to witness a million-dollar Bitcoin, it will only happen when a sovereign entity acknowledges it as a part of the world’s financial services architecture.”

ARK Invest CEO Cathie Wood recently opined that the odds of Bitcoin reaching a seven-figure valuation by 2030 have escalated. “We believe that the chances have increased that our bullish case will prove correct owing to the growing institutionalization of this new asset class,” she stated in February.

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Florida Governor and 2024 Republican presidential candidate, Ron DeSantis, has expressed his support for the growth and trade of cryptocurrencies. A notable aspect of his public announcement was his opposition to Central Bank Digital Currencies (CBDCs), a standpoint that is likely to resonate with many cryptocurrency enthusiasts.

Speaking about his perspective on Bitcoin, DeSantis stated, “You’ve got every right to do Bitcoin. The only reason these people in Washington don’t like it is because they don’t control it. They’re central planners, and they want to have control over society. So Bitcoin represents a threat to them and so they’re trying to regulate it out of existence.” This stance demonstrates his commitment to the autonomy of digital assets and his resistance to the potential suppression of the industry.

Political Figures Backing Crypto

It’s not just DeSantis voicing support for the cryptocurrency sector. 2024 Democratic presidential candidate, Robert F Kennedy Jr, is also a proponent of the industry. Kennedy Jr. has expressed his defense for the right to self-custody and the right to run a node at home, as well as advocating for industry-neutral regulation of energy.

Kennedy Jr. also expressed a desire to counteract what he sees as the government’s growing hostility towards the industry. This sentiment is shared by many in the crypto world, who feel regulatory bodies such as the United States Securities and Exchange Commission (SEC) have adopted an overly harsh stance on the industry.

Cryptocurrency: A Growing Topic in U.S. Politics

Cryptocurrency is increasingly finding its place in the political discourse in the United States. The industry has been making significant strides in getting its voice heard, with companies investing millions in lobbying efforts during last year’s midterm elections.

Among the notable donors are individuals like Sam Bankman-Fried, a well-known crypto insider, and firms such as Skybridge Capital, led by former Trump White House communications director Anthony Scaramucci. Coinbase has also emphasized the importance of political engagement, stating that it aims to recruit 50,000 crypto advocates by year-end.

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