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Cryptocurrency News Articles

Bitcoin Price Predictions for 2025 and Beyond Skyrocket as Donald Trump Prepares to Designate BTC a United States Reserve Asset

Dec 15, 2024 at 11:01 pm

Donald Trump will likely issue an executive order on his first day in office to designate Bitcoin (BTC) as a United States reserve asset, according to Jack Mallers

Bitcoin Price Predictions for 2025 and Beyond Skyrocket as Donald Trump Prepares to Designate BTC a United States Reserve Asset

Donald Trump might use an executive order on his first day in office to make Bitcoin ( BTC ) a United States reserve asset, according to Jack Mallers, CEO and founder of Strike.

A 200K Bitcoin buy order is coming in January 2025?

Speaking in a podcast interview with YouTuber Tim Pool, Mallers explained that the president-elect could use provisions in the so-called “Dollar Stabilization Act,” which gives him broad powers to protect the US dollar.

“There’s potential to use a day-one executive order to purchase Bitcoin,” Mallers said, adding:

The Bitcoin Act of 2024, introduced by pro-crypto Senator Cynthia Lummis in July, proposes that the Treasury and Federal Reserve purchase 200,000 BTC each year for five years, accumulating 1 million BTC.

The stash of Bitcoin will be held for at least 20 years, effectively taking 5% of Bitcoin’s total supply (of 21 million tokens) out of circulation.

These speculations have resulted in some new, lofty BTC price targets for 2025 and beyond.

Bitcoin price could hit $800,000 by 2025’s end

According to Perianne Boring, founder of The Digital Chamber, Bitcoin’s capped supply could lead to major price appreciation, especially if Trump successfully implements many of his proposed crypto policies.

“If Donald Trump is successful in putting forth a lot of the proposals that he’s proposed to the [crypto] community, the sky is the limit because Bitcoin has a fixed supply,” Boring said in an interview with Fox Business.

She pointed to the stock-to-flow model, which predicts Bitcoin’s price to hit over $800,000 by the end of 2025. Such a surge would bring Bitcoin’s market capitalization to around $15 trillion, up from its current valuation of over $2 trillion.

Meanwhile, PlanB, the creator of the stock-to-flow model, predicts that Bitcoin will average around the $500,000 price level in 2025. However, he believes that the price could go as high as $1 million.

Source: PlanB

BlackRock suggests 1-2% portfolio allocation to Bitcoin

The stock-to-flow model’s Bitcoin price prediction assumes that demand for BTC will continue to grow.

The U.S. Treasury accumulating 200,000 BTC each year would bolster the idea of stronger demand in coming years as it will likely force other countries to consider a strategic Bitcoin reserve of their own.

Related: 2025 ‘demand shocks’ will spike Bitcoin’s price — Sygnum

BlackRock, which manages over $10 trillion in assets, has already recommended that investors allocate 1-2% of their portfolio to Bitcoin.

“We see a case for investors with suitable governance and risk tolerance to include Bitcoin in a multi-asset portfolio,” the firm’s four senior executives, including ETF chief investment officer (CIO) Samara Cohen and senior portfolio strategist of the BlackRock Investment Institute Paul Henderson, said in a Dec. 12 report.

For context, total global reserve assets are valued at approximately $900 trillion. A 2% allocation to Bitcoin from this pool would theoretically drive the cryptocurrency’s price to around $900,000 per unit.

This article is not intended to be and should not be construed as investment advice. Every cryptocurrency investment carries high risk and readers are fully responsible for their own actions.

News source:cointelegraph.com

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