Trump may use Bitcoin as US reserve asset on 'day one' — How high will BTC price go?
Donald Trump will likely issue an executive order on his first day in office to designate Bitcoin ( BTC ) as a United States reserve asset, according to Jack Mallers, CEO and founder of Strike.
A 200K Bitcoin buy order is coming in January 2025?
In a podcast interview with YouTuber Tim Pool, Mallers explained that the president-elect could rely on provisions within a so-called "Dollar Stabilization Act," which grants him considerable authority to protect the US dollar.
“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."
The Bitcoin Act of 2024 , introduced by pro-crypto Senator Cynthia Lummis in July, proposes that the Treasury and Federal Reserve purchase 200,000 BTC annually over five years, accumulating 1 million BTC.
The reserve will be held for at least 20 years, thereby taking 5% of Bitcoin’s total supply (of 21 million tokens) from circulation.
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
According to Perianne Boring, founder of The Digital Chamber, Bitcoin’s capped supply could lead to significant price appreciation, especially if Trump successfully implements many of his proposed crypto policies.
“If Donald Trump is successful in putting forth a lot of the proposals that he's proposed to the [crypto] community, the sky is the limit because Bitcoin has a fixed supply,” Boring stated in an interview with Fox Business.
She pointed to the stock-to-flow model , which forecasts Bitcoin’s price to exceed $800,000 by the end of 2025. Such a surge would push Bitcoin’s market capitalization to around $15 trillion, up from its current valuation of over $2 trillion.
PlanB, the creator of the stock-to-flow model, meanwhile predicts Bitcoin to average around the $500,000 valuation across 2025. However, he believes that the price may go as high as $1 million.
Source: PlanB
BlackRock suggests 1-2% portfolio allocation to Bitcoin
The stock-to-flow model's Bitcoin price prediction hinges on the assumption that demand for BTC will continue to grow.
The US Treasury theoretically accumulating 200,000 BTC every year reinforces the idea of stronger demand in coming years, since it’ll likely force other counties to consider a strategic Bitcoin reserve of their own.
Related: 2025 ‘demand shocks’ will spike Bitcoin’s price — Sygnum
BlackRock, which manages over $10 trillion worth of assets, has already recommending investors to allocate 1-2% of their portfolio to Bitcoin.
"We see a case for investors with suitable governance and risk tolerance to include Bitcoin in a multi-asset portfolio," the firm’s four senior executives, including Samara Cohen, chief investment officer of ETFs and Paul Henderson, senior portfolio strategist of BlackRock Investment Institute, said in a report published Dec. 12.
To put this into perspective, the total global reserve assets are valued at approximately $900 trillion. A 2% allocation to Bitcoin from this pool would, in theory, drive the cryptocurrency's price to around $900,000 per unit.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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