Bitcoin steadies as Brazil reintroduces BTC reserve bill

Brazil Bitcoin reserve plan could impact BTC via demand and signaling

Brazil’s Congress is evaluating a strategic Bitcoin reserve initiative known as RESBit (PL 4501/2024), a proposal that contemplates accumulating up to 1 million BTC as part of a national reserve strategy. As reported by news.bitcoin.com, the measure represents a significant expansion of prior ideas and has been formally reintroduced for legislative consideration.

If enacted, a sovereign accumulation program could influence BTC through two principal channels: direct demand on limited spot supply and indirect signaling to global markets. According to Coingape, discussion of a reserve policy has tracked with narratives around broader adoption, while ETF inflows have been cited as evidence of rising institutional engagement, factors that can amplify sentiment without guaranteeing outcomes.

Scope, timeline, and status of PL 4501/2024 (RESBit)

Bitget’s news desk reports that Bill 4501 has been reintroduced with a framework to build a strategic reserve of up to 1 million BTC over five years. In the same account, the text also contemplates permitting certain tax payments in Bitcoin, indicating an implementation track that extends beyond reserve management into public-sector payments infrastructure.

Cryptorank’s news feed similarly notes the reintroduction of Bill 4501/2024 in Congress and reiterates the strategic-reserve cap at up to 1 million BTC. This aligns the current legislative status with prior public disclosures while leaving technical details, such as custody, audit, and execution mechanics, to subsequent regulation.

Forbes has identified Congressman Eros Biondini as the bill’s sponsor and has described proposals to allocate up to 5% of Brazil’s international reserves to Bitcoin over time. That framing places RESBit within the domain of sovereign reserve diversification rather than a wholesale shift away from traditional instruments.

TheCoinomist has reported that officials at Banco Central do Brasil have raised concerns about Bitcoin’s volatility and its fit with conventional reserve-asset criteria. Those reservations suggest any implementation would likely require phased accumulation, risk limits, and clear operational controls to satisfy monetary and financial-stability mandates.

Following those institutional objections, supporters within government have emphasized the strategic rationale. Pedro Giocondo Guerra, Chief of Staff to the Vice President, said the reserve is “in the public interest and critical to our prosperity” and characterized Bitcoin as “digital gold,” according to CoinReporter.

Bitcoin price prediction drivers and uncertainties tied to Brazil

Price formation, if RESBit advances, would hinge on execution mechanics and signaling. Accumulation via OTC channels or time-weighted purchasing could mitigate market slippage, while on-chain and custodial transparency may influence risk premia. Conversely, headlines alone, without material buying, could produce short-lived moves that reverse if legislative momentum stalls.

Key uncertainties relate to regulatory coordination and governance. Central bank pushback could slow or narrow the program, while future administrations might alter mandate, pace, or disposal policies. Any rapid unwind during stress could amplify downside volatility, a risk that argues for rule-based execution, multi-signature cold storage, and independent auditing.

Private-sector positioning provides a reference point for prudence. Yahoo Finance has reported that Itáu Asset Management’s leadership has advised clients to consider only small Bitcoin allocations to manage macro and FX risks, an approach that underscores diversification logic but stops short of endorsing BTC as a core reserve asset.

At the time of this writing, Bitcoin was trading around $70,206, with the accompanying metrics indicating very high short-term volatility and a 14-day RSI near 36.6. These conditions contextualize how incremental sovereign demand could interact with already-elevated dispersion in returns, without implying direction. This analysis is for informational purposes only and does not constitute investment advice.