Trump May ‘One Day’ Use Bitcoin As America’s Reserve Asset – How High Will BTC Price Go?
Donald Trump may issue an executive order on his first day in office to designate bitcoin (BTC) as the reserve asset of the United States, according to Jack Mallers, CEO and founder of Stroke.
Will there be a 200K Bitcoin buy order in January 2025?
In a podcast interview with YouTube's Tim Poole, Mallers said the president-elect could rely on the provisions of the so-called “Dollar Stabilization Act,” which gives him more authority to protect the U.S. dollar.
“There is an opportunity to use a Day One executive order to buy Bitcoin,” Mallers said.
“It's not going to be the size and amount of 1 million coins, but it's going to be a big place.”
The Bitcoin Act of 2024, introduced by pro-crypto Senator Cynthia Lammis in July, proposes that the Treasury and Federal Reserve reserve 200,000 BTC per year to 1 million BTC.
The reserve will last for at least 20 years, thus taking 5% of Bitcoin's total supply (21 million tokens) out of circulation.
These speculations have resulted in some lofty new BTC price targets for 2025 and beyond.
By the end of 2025, Bitcoin's value could reach $800,000.
According to Perrian Boring, founder of Digital Chamber, Bitcoin's limited supply could lead to significant price appreciation, especially if Trump successfully implements many of his proposed crypto policies.
“If Donald Trump succeeds in bringing out many of his ideas [crypto] Community, the sky is the limit because Bitcoin has a fixed supply,” Boring said in an interview with Fox Business.
She pointed to a stock-to-flow model that predicts Bitcoin's price will exceed $800,000 by the end of 2025. Such an increase would push Bitcoin's market capitalization to $15 trillion, up from its current estimate of $2 trillion.
PlanB, creator of the stock-to-flow model, meanwhile predicts that Bitcoin will average around $500,000 in 2025. But he believes that the price can reach up to 1 million dollars.
Source: PlanB
Blackrock suggests a 1-2% portfolio allocation to Bitcoin
The stock-to-flow model's Bitcoin price forecast is based on the assumption that demand for BTC will continue to grow.
The US Treasury's theoretical stockpiling of 200,000 BTC per year would bolster the idea of strong demand in the coming years, as it would force other counties to consider their own strategic Bitcoin reserves.
Related: 2025 ‘Demand Shock' Will Drive Bitcoin Price Up – Signum
BlackRock, which manages more than $10 trillion in assets, previously advised investors to allocate 1-2% of their portfolios to Bitcoin.
“We have seen a case for investors with suitable management and risk tolerance to include Bitcoin in a multi-asset portfolio,” said the firm's four top executives, including Samara Cohen, ETFs Chief Investment Officer and Paul Henderson, BlackRock Investment Institute's senior portfolio strategist. He said in a report published on December 12.
To put this in perspective, the world's total reserve assets are worth an estimated $900 trillion. Allocating 2% of this pool to Bitcoin would theoretically raise the value of the cryptocurrency to $900,000 per unit.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
