Will Brazil Purchase 1 Million BTC? A Signal of Bitcoin Surpassing $80,000

▲ Brazil Bitcoin ©

Brazil has introduced a major new variable into Bitcoin’s (BTC) medium- to long-term price trajectory by advancing a “strategic Bitcoin reserve” bill that aims to purchase 1 million BTC over the next five years.

According to cryptocurrency media outlet Watcher.Guru on Feb. 14 (local time), Bitcoin reclaimed the $70,000 level after the latest U.S. Consumer Price Index (CPI) came in below expectations, easing inflation concerns. As risk appetite returned, discussions of the strategic Bitcoin reserve bill in Brazil’s Congress fueled expectations of additional demand expansion.

The Brazilian government has proposed acquiring a total of 1 million Bitcoin over the next five years, estimated to be worth approximately $68 billion. The purchases would be carried out gradually to minimize market impact. The bill also includes provisions allowing federal taxes and fines to be paid in Bitcoin and exempts capital gains taxes on cryptocurrency sales. Bitcoin confiscated by courts would not be liquidated but instead added to the national reserve.

If the bill passes, Brazil would emerge as one of the world’s largest Bitcoin-holding nations, potentially surpassing the United States and China. Currently under review by congressional committees on economic development, finance, and justice, the proposal is being presented as a means of diversifying Brazil’s national asset portfolio and strengthening long-term fiscal stability.

Meanwhile, as of Feb. 13, U.S. spot Bitcoin ETFs recorded net inflows of $15.2 million. Fidelity’s FBTC ETF led with $11.99 million in inflows. Spot Ethereum ETFs also posted net inflows of $10.26 million, while the Grayscale Ethereum Mini Trust ETF saw $14.51 million in a single day. The return of institutional capital has supported the recent price rebound.

In terms of price action, Bitcoin recently climbed to $69,779. The Relative Strength Index (RSI) stands at 57, approaching overbought territory but not yet entering it, while the Chaikin Money Flow (CMF) reads 0.07, indicating moderate buying pressure. Key resistance levels are identified at $70,000 and $75,000; a breakout above these levels could open the door to further gains toward $80,000. On the downside, $65,000 is being watched as a short-term support level. If Brazil’s strategic reserve becomes a reality, it could strengthen Bitcoin’s global standing and demand base, potentially influencing its medium- to long-term price momentum.

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