Alistair Milne, co-founder and Chief Investment Officer (CIO) of the Altana Digital Currency Fund (ADCF), shared his insights on the future of Bitcoin in a recent thread on X. With his extensive experience at ADCF since 2014, Milne’s predictions are highly regarded in the investment community. Here, we delve into his Bitcoin forecasts for 2025, examining potential government actions, market trends, and more.
Insightful Bitcoin Forecasts for 2025
Milne’s predictions begin with the potential involvement of the United States in Bitcoin accumulation. He suggests that while former President Trump may not officially announce Bitcoin purchases on behalf of the U.S., he could sign an order preventing the sale of any seized Bitcoin, essentially creating a reserve. This move, according to Milne, would likely generate a global fear of missing out (FOMO) on Bitcoin investments.
Global and Corporate Engagement with Bitcoin
Milne foresees that the U.S. may not follow Senator Cynthia Lummis’ Bitcoin Act, which proposes acquiring 1 million BTC over five years. However, under President-elect Trump, the U.S. might retain its 198,109 BTC as a national stockpile, as promised during the Nashville Bitcoin Conference. This could potentially trigger global FOMO. Additionally, Milne anticipates that smaller, more agile nations, alongside Bhutan and El Salvador, will announce Bitcoin reserves and commence buying or mining activities before the U.S. Middle Eastern countries are also expected to declare their Bitcoin holdings.
Corporate interest in Bitcoin is projected to rise, with Milne predicting that another S&P 500 company, apart from Tesla or MicroStrategy, will announce a Bitcoin acquisition in 2025. This move could further solidify Bitcoin’s position in the corporate world, encouraging other companies to follow suit.
Related Reading
Milne’s price projections for Bitcoin remain optimistic. He predicts that Bitcoin could reach $200-250k, even without U.S. government intervention. Should the U.S. start buying Bitcoin, prices might soar closer to $500k by 2025. This scenario is attributed to the emergence of a nation-state arms race, where the scarcity of Bitcoin becomes a critical factor.
Market Dynamics and Institutional Performance
Milne anticipates that Bitcoin will reach its peak in the latter half of 2025, suggesting October as a possible timeframe. He notes that the bear market will be considerably milder than previous ones, as nation-states and corporations gradually accumulate Bitcoin. Addressing security and market stability, Milne predicts Bitfinex will recover most of its hacked BTC, causing a temporary market dip due to fears of a Bitcoin dump. However, he believes that Bitfinex will convert 80% of this Bitcoin to LEO over 18 months, stabilizing the market.
The collapse and subsequent recovery of major exchanges are pivotal in Milne’s 2025 Bitcoin predictions. He forecasts that FTX will begin distributing USD to creditors in the first quarter, facilitating reinvestments into Bitcoin through several large exchanges. This reinvestment is expected to inject liquidity into the Bitcoin market, potentially sparking a renewed price rally.
Institutional Investors and Legal Developments
Milne doesn’t overlook institutional investors’ performance, noting that MSTR could achieve a ‘Bitcoin yield’ of around 30% in 2025 before the premium closes. Furthermore, he touches on legal developments, predicting that incoming U.S. President Donald Trump will fulfill his campaign promise to free Silk Road founder Ross Ulbricht. Milne concludes his predictions with a hopeful note, anticipating Ulbricht’s release.
As of the latest updates, Bitcoin is trading at $93,070, showcasing the dynamic nature of the cryptocurrency market. Milne’s predictions offer a comprehensive view of potential developments in the Bitcoin landscape, providing valuable insights for investors and enthusiasts alike.
