Bitcoin’s rally to new record highs isn’t just about numbers on a chart, according to The Big Bitcoin Book author Fred Krueger — it's a culmination of shifting tides in finance and the result of a fresh promise: The possibility of a U.S. Bitcoin Strategic Reserve.
Krueger joined Coinage to break down why he’s convinced that 2024 is shaping up to be a “perfect storm” for Bitcoin. For him, it’s more than just the recent political swing in the U.S. or ETFs attracting institutional cash; it’s about a new, unstoppable momentum he believes will put Bitcoin front and center.
“The election changes everything,” Krueger said. “It could have gone the other way. Had we had a different outcome in the election, we might be looking at $50,000, not $100,000. We have the best of all possible worlds for Bitcoin right here. We just added kerosene to the fire.”
While it’s easy to fixate on Bitcoin’s latest ETF-driven price action, Krueger’s eyes are on the sheer scale of capital that could flood in from traditional finance (TradFi) as institutions scramble to get in on the action. He broke down the math: traditional U.S. financial market players sit on a staggering $100 trillion, but barely a sliver of that has touched Bitcoin.
“TradFi only owns about $100 billion worth,” he pointed out, the equivalent of a “toe in the water” at 0.1% of the total pie. “We’re looking at a $1 trillion inflow over the next, let’s call it, four years. And that’s if they move slowly. If this money’s coming in, you don’t really want to be the last guy in the pool.”
Now that ETF approvals have opened the door for this shift, Krueger’s message is simple: Wall Street is waking up. “Most people aren’t going to wire money to this thing called Coinbase and buy Bitcoin. Now they don’t have to,” he said. “The dam is about to break.”
Krueger’s tone shifted when the conversation turned to one of the hottest ideas in crypto policy today: the concept of a U.S. Bitcoin Strategic Reserve. With Republicans now in control of Congress and a pro-crypto administration poised to make waves, Krueger believes it’s no longer wishful thinking. “It’s 100% realistic,” he declared. “It’s 100% going to happen.”
He recalled being in Nashville earlier this year when Trump and Senator Lummis shared this commitment directly with the Bitcoin community . “This is happening by, I would say, March of next year.”
