Trump May ‘One Day’ Use Bitcoin As America’s Reserve Asset – How High Will BTC Price Go?
According to Jack Mallers, founder and CEO of Stroke, President-elect Donald Trump may issue an executive order on his first day in office to designate Bitcoin as the United States' reserve asset.
Will a 200K Bitcoin buy order come in January 2025?
In a podcast interview with YouTube's Tim Poole, Mallers said Trump could rely on provisions of the so-called “Dollar Stabilization Act” to protect the U.S. dollar.
“There is an opportunity to use a day one executive order to buy Bitcoin,” Mallers said, adding
“It won't be the size and amount of 1 million coins, but it will be a big place.”
The Bitcoin Act of 2024, introduced by pro-crypto Senator Cynthia Lummis in July, proposes that the Treasury and Federal Reserve buy 200,000 BTC per year and purchase 1 million bitcoins (BTC) over five years.
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, the creator of the stock-to-flow model, predicts that it will be worth an average of $500,000 by 2025. However, he said the price could be as high as $1 million.
Source: PlanB
Blackrock suggests a 1-2% portfolio allocation to Bitcoin
The stock-to-flow model of Bitcoin price forecasting focuses on the assumption that demand for BTC will increase.
The US Treasury, theoretically hoarding 200,000 BTC each year, reinforces the idea of strong demand because it will likely force other countries 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, is already recommending that investors allocate 1-2% of their portfolios to Bitcoin.
“We have seen a case for investors with appropriate management and risk tolerance to include Bitcoin in a multi-asset portfolio,” said Samara Cohen, ETFs chief investment officer, including four senior executives, and Paul Henderson, senior portfolio strategist at BlackRock Investment Institute. He said in a report published on December 12.
To put this in perspective, the total global reserve assets are estimated at $900 trillion. Allocating 2% of this pool to Bitcoin would theoretically bring the cryptocurrency's value 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.
