Schwab Quantifies Bitcoin Price Impact of US Senate Legislation

Financial giant Charles Schwab has released a study quantifying the impact of US Senate legislation on Bitcoin's price. According to the firm, Bitcoin would need to reach approximately $154,000 per coin to match the returns offered by 30-year Treasury Inflation-Protected Securities (TIPS), which currently yield 2.98%.

TIPS are Treasury bonds that adjust their principal based on inflation, providing a real return above inflation of just under 3% for three decades. The study modeled Bitcoin's price sensitivity to a US Senate bill tied to a $5 billion market and concluded that the cryptocurrency would need to reach $154,000 to match the returns offered by TIPS.

The analysis suggests that regulatory clarity has historically been a strong catalyst for institutional crypto adoption. However, the risk is that the legislative landscape shifts, making it difficult for traders to position around the thesis with any precision.