Bitcoin has rebounded to over $100,000 after a holiday lull, climbing with stock markets.
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Bitcoin price got off to a slow start to the year, but bulls have sent bears back into hibernation, aided by wild speculation that Elon Musk may be about to drop a crypto bomb.
Now, with a crisis in China expected to fuel further gains in the price of bitcoin, analysts at a Wall Street investment bank put the chance at 60% that new US President Donald Trump will create a reserve of bitcoin in 2025, much more than most other predictions.
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United States President-elect Donald Trump said he plans to create a bitcoin reserve, helping the … (+)
“Based on our analysis of historical price cycles and recent price action, as well as the widely held expectation of a more favorable regulatory environment for the digital assets sector in the United States in 2025 under the new administration, the availability of spot ETFs (exchange-traded funds) in the United States and accelerating adoption by institutional investors and businesses, we now estimate that bitcoin will reach $225,000 per coin by the end of 2025,” wrote Mike Colonnese, an analyst at HC Wainwright. in a note seen by CNBC.
However, Colonnese said the price of bitcoin could “significantly exceed” his price predictions if the United States implements bitcoin as a Treasury reserve asset this year – which he attributed to a 60% probability.
In December, Trump confirmed his intention to create a US strategic Bitcoin reserve. “We’re going to do something great with crypto because we don’t want China, or anyone else…but others are adopting it and we want to be ahead of it,” said Trump. CNBC.
“Yes, I think so,” Trump said in response to a question about whether the United States would create a strategic Bitcoin reserve similar to its oil reserve.
In July, then-Republican candidate Donald Trump promised to create a “strategic national bitcoin reserve” and predicted that bitcoin could eclipse the $16 trillion market capitalization of gold of dollars, during an appearance at the Bitcoin 2024 conference.
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The price of bitcoin has surpassed $100,000 per bitcoin after falling to around $90,000 recently. … (+)
Republican Senator Cynthia Lummis introduced a bill to Congress called the Boosting Innovation, Technology and Competitiveness Through Optimized Investment Nationwide (BITCOIN) Act, which proposes that the United States purchase 1 million bitcoins over five years to reduce the national debt US economy is skyrocketing by $35 trillion.
The possibility of Trump following through on his bitcoin reserve plans has sparked huge bitcoin price predictions from bitcoin traders and investors – with a leak revealing Russia could beat the US in creating of a reserve of bitcoins.
However, many bitcoin and crypto observers still view the creation of a US strategic reserve for bitcoin as unlikely – with odds on prediction platform Polymarket showing a 29% chance of Trump creating a bitcoin fund over the course of his first 100 days.
“I consider this to be a low probability (less than 10%) and high impact event,” Geoff Kendrick, global head of digital assets research at Standard Chartered, said in December. “If that happens, $200,000 is way too low for next year,” referring to his own bitcoin price prediction.
