Bitcoin (BTC) Price Rebounds Past $100K as Analysts See 60% Chance of U.S. Bitcoin Reserve in 2025

Bitcoin has rebounded to over $100,000 after a lull during the holiday period, climbing along with stock markets.

Now, as a crisis in China is predicted to fuel further bitcoin price gains, analysts at a Wall Street investment bank have put the odds of incoming U.S. president Donald Trump creating a bitcoin reserve in 2025 at 60%—far higher than most other predictions.

U.S. president-elect Donald Trump has said he plans on creating a bitcoin reserve, helping the ... [+] bitcoin price surge to all-time highs over $100,000 per bitcoin.

"Based on our analysis of historical price cycles and recent price action, along with the widely-held expectation for a more favorable regulatory environment for the digital assets industry in the U.S. in 2025 under the new administration, the availability of spot ETF [exchange-traded fund] products in the U.S., and accelerating institutional investor and corporate adoption, we now estimate that bitcoin will reach $225,000 per coin by the end of 2025," HC Wainwright analyst Mike Colonnese wrote in a note seen by CNBC.

However, Colonnese said the bitcoin price could "significantly exceed" its price prediction if the U.S. implements bitcoin as a treasury reserve asset this year—something he has assigned a 60% likelihood of happening.

In December, Trump confirmed he plans to establish a U.S. bitcoin strategic reserve. "We're gonna do something great with crypto because we don’t want China, or anybody else … but others are embracing it, and we want to be ahead," Trump told CNBC.

"Yes, I think so," Trump said in response to a question about whether the U.S. will create a bitcoin strategic reserve similar to its oil reserve.

In July, then Republican candidate Donald Trump promised to create a "strategic national bitcoin reserve" and predicted bitcoin could eclipse gold's $16 trillion market capitalization during an appearance at the Bitcoin 2024 conference.

The bitcoin price has rocketed past $100,000 per bitcoin after dropping to around $90,000 in recent ... [+] weeks.

Republican senator Cynthia Lummis has introduced a bill to congress, entitled the Boosting Innovation, Technology and Competitiveness Through Optimized Investment Nationwide (BITCOIN) Act, which proposes the U.S. buy 1 million bitcoins over five years to reduce the spiraling $35 trillion U.S. national debt.

The possibility that Trump follows through on his bitcoin reserve plans has spurred huge bitcoin price predictions from bitcoin traders and investors—with a leak revealing Russia may beat the U.S. to creating a bitcoin reserve.

However, many bitcoin and crypto watchers still see the creation of a U.S. bitcoin strategic reserve as unlikely—with the odds on the Polymarket prediction platform showing a likelihood of 29% that Trump will create a bitcoin fund within his first 100 days.

"I am thinking of it as a low probability (less than 10%), high impact event," Geoff Kendrick, global head of digital assets research at Standard Chartered, said in December. "If it happens, $200,000 is far too low for next year," referring to his own bitcoin price prediction.