Trump Considering Bitcoin as US Reserve Asset on 'Day One' — How High Could BTC Soar?
A prospective Trump executive order designating Bitcoin as a US reserve asset might result in a $20 billion BTC acquisition in 2025.
According to Strike's founder and CEO, Jack Mallers, President-elect Donald Trump would most likely issue an executive order on his first day in office designating Bitcoin as a US reserve asset.
A 200K Bitcoin buy order is expected in January 2025
Mallers stated in a podcast conversation with YouTuber Tim Pool that Trump might use provisions of a so-called "Dollar Stabilization Act," which gives him significant authority to preserve the US dollar.
A day-one executive order may be used to buy Bitcoin, according to Mallers:
"It wouldn't be the size and scale of 1 million coins but it would be a significant position."
The Bitcoin Act of 2024, presented by pro-crypto Senator Cynthia Lummis in July, proposes that the Treasury and Federal Reserve acquire 200,000 BTC annually over five years, collecting 1 million Bitcoin (BTC) tickers down to $101,155.
The reserve would be retained for at least 20 years, thereby removing 5% of Bitcoin's total supply (21 million tokens) from circulation.
These predictions have led to some high new Bitcoin price targets for 2025 and beyond.
Bitcoin price may reach $800,000 by the end of 2025
According to Perianne Boring, founder of The Digital Chamber, Bitcoin's limited supply might result in significant price gain, particularly if Trump successfully adopts many of his proposed crypto regulations.
"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 told Fox Business.
She cited the stock-to-flow model, which predicts Bitcoin's price would top $800,000 by the end of 2025. Such a spike would increase Bitcoin's market capitalization to over $15 trillion, up from its present value of more than $2 trillion.
PlanB, the developer of the stock-to-flow model, believes that Bitcoin's price will average approximately $500,000 by 2025. However, he stated that the price may reach as high as $1 million.
BlackRock advocates a 1-2% portfolio allocation to Bitcoin
The stock-to-flow model's Bitcoin price prediction is based on the assumption that demand for BTC will continue to rise.
The US Treasury, which theoretically accumulates 200,000 BTC per year, encourages the premise of increased demand by forcing other governments to consider strategic Bitcoin reserves of their own.