Market Update

Huge Bet on US Bitcoin Reserve for 2025 Helps Send Bitcoin Price Over $100,000

Bitcoin rebounded to more than $100,000 after a holiday lull, rising alongside stock markets.

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The price of Bitcoin has had a slow start to the new year, but the bulls have sent the bears back into hibernation, With the help of wild speculation, Elon Musk may be about to drop a crypto bomb.

now, The crisis in China is expected to increase Bitcoin price gainsAnalysts at a Wall Street investment bank estimated the chances of the next US President Donald Trump creating a Bitcoin reserve in 2025 at 60% –Much higher than most other forecasts.

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“Based on our analysis of historical price cycles and recent price action, coupled with widely held expectations of a more favorable regulatory environment for the U.S. digital asset industry in 2025 under new management, the availability of spot ETFs [exchange-traded fund] products in the U.S., and accelerating adoption by institutional investors and businesses, we now estimate that Bitcoin will reach $225,000 per coin by the end of 2025,” Mike Colonis, an analyst at HC Wainwright, wrote in a note. visual by CNBC.

However, Colonis said the price of bitcoin could “significantly exceed” his price prediction if the U.S. uses bitcoin as a Treasury reserve asset this year — something he put the probability of happening at 60%.

In December, Trump He confirmed that he plans to create a strategic reserve of Bitcoin in the United States. “We’re going to do something great in crypto because we don’t want China or anyone else…but others embracing it, and we want to be ahead of the curve,” Trump said. He said CNBC.

“Yes, I think so,” Trump said in response to a question about whether the United States would create a strategic reserve of Bitcoin similar to its oil reserve.

In July, Republican candidate Donald Trump promised to create a “Strategic National Bitcoin Reserve” and predicted that Bitcoin would do just that. Gold’s $16 trillion market cap trumps during an appearance at the Bitcoin 2024 conference.

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Forbes‘X Money’ leak reveals Elon Musk’s game-changing plan as Bitcoin price approaches $100,000

Republican Senator Cynthia Lummis has introduced a bill to Congress, titled the Promoting Innovation, Technology, and Competitiveness Through Optimal Investment Nationwide (BITCOIN) Act, which proposes that the United States purchase 1 million bitcoins over five years to reduce the spiraling US national debt of $35 trillion. .

Trump is increasingly likely to follow through on his Bitcoin reserve plans Huge Bitcoin price predictions from Bitcoin traders and investorsWith a leak revealing that Russia may overtake the United States in creating Bitcoin reserves.

However, many Bitcoin and cryptocurrency watchers still see the creation of a strategic Bitcoin reserve in the US as unlikely – with possibilities on forecasting platform Polymarket. an offer There is a 29% chance that Trump will create a Bitcoin fund within his first 100 days.

“I think of it as a low probability (less than 10%), high impact event,” Jeff Kendrick, global head of digital assets research at Standard Chartered, said in December. “If that happens, $200,000 will be very low for next year,” he said, referring to his own Bitcoin price predictions.

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