The American Reserve Modernization Act (ARMA Act) proposes a US strategic Bitcoin reserve, as investors watch whether the legislation provides a long-term uptick for Bitcoin demand and creates a role for the cryptocurrency as a government-held asset.
Thanalop Preedamanoch, head of investment and fund manager at Merkle Capital, said major Bitcoin rallies have historically been driven by new sources of demand. Retail investors played a key role in the 2021 bull market, while institutional demand accelerated in 2024 following the introduction of spot Bitcoin exchange-traded funds.