Bitcoin (BTC) has recently achieved an unprecedented milestone, soaring to an all-time high of $94,000. This remarkable ascent has been driven by a robust upward trend that began on November 5, coinciding with President-elect Donald Trump’s re-election. Trump’s commitment to enhancing regulatory clarity for digital assets has catalyzed a powerful rally, enabling BTC to experience a remarkable 40% surge in just two weeks.
Prepare for Possible Seven-Figure BTC Prices
The current surge in Bitcoin’s value can be attributed to heightened buying pressure and increased inflows into Bitcoin exchange-traded funds (ETFs). Furthermore, the speculation about a potential US Bitcoin strategic reserve has amplified investor confidence significantly. This initiative has caught the attention of many in the crypto community, adding another layer of excitement to Bitcoin’s journey.
Adam Back, the CEO of Blockstream and a staunch advocate for Bitcoin, has proposed that if the US were to establish a strategic Bitcoin reserve, investors should brace themselves for the possibility of seven-figure Bitcoin prices in this market cycle. Back emphasized:
If the US Strategic Bitcoin Reserve happens, prepare for seven-figure Bitcoin prices this cycle. The market remains skeptical about significant follow-through for now, so that is not at all priced in.
Market expert Anthony Pompliano has highlighted the escalating discussions surrounding this initiative. Pro-crypto Senator Cynthia Lummis has introduced legislation to bring the reserve into action, while Trump has previously expressed intentions to utilize the approximately 200,000 BTC already held by the US government.
Bitcoin to $150,000 in 2025?
Despite these proposals, Pompliano argues that they may not be sufficient. He advocates for a more aggressive strategy, suggesting that the US should consider printing $250 billion on the first day of Trump’s presidency and investing the entire amount into Bitcoin. Such a bold move could redefine the financial landscape and solidify the US’s position in the global crypto market.
Pompliano outlines that the proposed $250 billion investment could acquire nearly 2.8 million BTC at the current price. However, he acknowledges that the US government’s purchases would likely influence market prices, leading to an estimated average purchase price of $150,000 per coin, resulting in the acquisition of approximately 1.6 million BTC.
Combined with the 200,000 Bitcoin already held, this strategy would position the US as the largest holder of Bitcoin globally, with a total of 1.8 million BTC. Pompliano asserts that while this approach may seem costly, it represents a prudent financial move with the potential for significant long-term benefits, reinforcing the US’s dominance in the cryptocurrency sector.
At present, Bitcoin is trading at $93,770, reflecting a 5% increase on the weekly time frame. The ongoing developments and strategic plans underscore the complex interplay of politics, finance, and technology in shaping the future of Bitcoin and the broader cryptocurrency market.
