Trump’s crypto-friendly policies might help Bitcoin reach $130K or even higher soon

As President-elect Donald Trump prepares to take office on 20th Jan, the spotlight is on Bitcoin. Many believe his pro-crypto policies could lead to a significant price surge for Bitcoin, while debates about adopting a national Bitcoin reserve are gaining momentum. Could this be the beginning of a new financial chapter for the U.S.?

Trump’s Administration Sparks Bitcoin Optimism

With Trump’s inauguration just around the corner, speculation is growing about how his administration might support cryptocurrencies. Some analysts predict that Bitcoin’s price could rise to $130,000 or even $150,000 if Trump announces crypto-friendly policies.

One of the most talked-about ideas is Senator Cynthia Lummis’s BITCOIN Act of 2024, which proposes the Treasury buy 1 million BTC over the next five years. Supporters believe this move could strengthen the U.S. economy and reduce reliance on traditional monetary systems.

Bitcoin Reserve Debate Continues

The idea of a national Bitcoin reserve has sparked a mix of hope and concern. Supporters, like Suriname’s presidential candidate Maya Parbhoe, argue that Bitcoin could help countries escape the problems of inflation and reckless fiscal policies.

She believes adopting Bitcoin would bring stability and protect citizens’ wealth, comparing its importance to the internet in the 1990s.

However, critics warn of potential risks. Nic Carter, a Bitcoin expert, said that while Bitcoin works well for smaller countries like El Salvador, it could destabilize the U.S. financial system.

Others, like former New York Fed President Bill Dudley, worry that funding a Bitcoin reserve could increase national debt or cause inflation.

Meanwhile, Ki Young Ju, CEO of CryptoQuant, raised a key question calling it a “chicken-and-egg” question.

Strategic #Bitcoin reserves debate has become a chicken-and-egg dilemma:

Proponents: As the dollar dominance weakens, Bitcoin will become the inevitable alternative—adopt it early.

Opponents: Bitcoin threatens dollar dominance—don't disrupt the status quo. pic.twitter.com/ML37q0UPbh

Should Bitcoin adoption happen because the dollar is losing strength, or will adopting Bitcoin trigger the dollar’s decline?

On-Chain Metrics Offer Hope

mid the debates, on-chain data is giving Bitcoin fans more reasons to be hopeful. The Coinbase premium, a metric that shows U.S. demand for Bitcoin, turned positive recently, signaling renewed interest from American investors.

As Bitcoin’s price edges closer to its ATH of $108K, this renewed demand could push it even higher.