As a seasoned investor with a penchant for cryptocurrencies and a keen eye for market trends, I find myself intrigued by the recent speculations surrounding Bitcoin. The idea of Donald Trump, known for his bold moves, designating BTC as a US reserve asset on his first day in office sounds audacious, but not entirely implausible given our political climate.
It is expected that Donald Trump may announce an executive order on his inauguration day that classifies Bitcoin (BTC) as a national asset held in the U.S. reserves, based on Jack Mallers’ statement, who leads Strike as CEO and founder.
A 200K Bitcoin buy order is coming in January 2025?
During a chat on Tim Pool’s podcast, Mallers clarified that the incoming President might leverage powers given by what’s known as the “Dollar Stabilization Act” to safeguard the U.S. currency, offering him significant control.
“There’s potential to use a day-one executive order to purchase Bitcoin,” Mallers stated, adding:
“It wouldn’t be the size and scale of 1 million coins but it would be a significant position.”
In simpler terms, a proposed law called the Bitcoin Act of 2024, put forward by Senator Cynthia Lummis in July, suggests that the U.S. Treasury and Federal Reserve should acquire approximately 200,000 Bitcoins each year for the next five years. This would result in a total accumulation of around 1 million Bitcoins.
For the next two decades, a portion of Bitcoin’s overall supply (consisting of approximately 21 million tokens) will be withheld from circulation, amounting to about 5%.
These speculations have resulted in some lofty new BTC price targets for 2025 and beyond.
Bitcoin price may hit $800,000 by 2025’s end
As stated by Perianne Boring, the founder of The Digital Chamber, a limited supply of Bitcoin may result in substantial increases in its value, potentially becoming more pronounced if Donald Trump manages to enact several of his proposed cryptocurrency initiatives.
In a recent interview with Fox Business, Boring suggested that if Donald Trump manages to implement many of his proposed ideas within the crypto sphere, Bitcoin’s potential could be virtually unbounded given its finite supply.
She indicated the stock-to-flow model, a prediction tool suggesting that Bitcoin’s price could rise above $800,000 by 2025. This significant increase would potentially elevate Bitcoin’s total market value to approximately $15 trillion, a substantial leap from its present worth of more than $2 trillion.
According to PlanB, the inventor of the stock-to-flow model, anticipates that the average value of Bitcoin could be approximately $500,000 throughout the year 2025. He further speculates that the price might even reach a staggering $1 million.
BlackRock suggests 1-2% portfolio allocation to Bitcoin
The forecast made by the stock-to-flow model for Bitcoin’s price depends on the expectation that the demand for Bitcoin will persistently increase.
Each year, the U.S. Treasury potentially acquiring 200,000 Bitcoins strengthens the notion that demand will increase in future years. This is because other countries may feel compelled to establish their own strategic Bitcoin reserves as a response.
BlackRock, with more than $10 trillion under management, is advising investors to consider investing between 1-2% of their portfolios in Bitcoin.
The leaders at our company recommend that investors who have the right level of governance and risk appetite consider adding Bitcoin to a diverse collection of assets, according to a statement they made in a report we released on December 12th. This advice comes from Samara Cohen, our Chief Investment Officer for ETFs, as well as Paul Henderson, our Senior Portfolio Strategist at the BlackRock Investment Institute.
Considering the scale, the combined value of all global reserve assets is roughly $900 trillion. If just 2% of that amount were invested in Bitcoin, theoretically, each Bitcoin unit could reach a price of about $900,000.
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2024-12-15 17:54