Originally published on: December 15, 2024
President-elect Donald Trump is rumored to use an executive order on his first day in office to designate Bitcoin as a United States reserve asset, as suggested by Jack Mallers, CEO of Strike. This move could be made possible through the “Dollar Stabilization Act,” granting Trump authority to safeguard the US dollar.
In a podcast interview with Tim Pool, Mallers discussed the possibility of utilizing an executive order to acquire Bitcoin and introduced the idea of The Bitcoin Act of 2024. This act proposes purchasing 200,000 BTC annually over five years to accumulate 1 million Bitcoin for reserve, potentially impacting Bitcoin prices significantly.
The notion of Bitcoin being integrated into the US reserve has led to optimistic price predictions for BTC. Perianne Boring, founder of The Digital Chamber, highlighted the benefits of Bitcoin’s fixed supply, projecting a price surge to over $800,000 by 2025, in line with the stock-to-flow model.
PlanB, the creator of the model, estimates a $500,000 average price for Bitcoin in 2025, with potential spikes to $1 million. This positive outlook is fueled by the expected increase in Bitcoin demand, especially if other countries follow suit in considering Bitcoin reserves.
Even institutions like BlackRock are recommending a portion of their portfolios be allocated to Bitcoin, potentially driving the price further. With the global reserve assets valued at around $900 trillion, a 2% allocation to Bitcoin could push its price to approximately $900,000 per unit.
While these forecasts are promising, it’s crucial for investors to conduct thorough research and exercise caution in their financial decisions. Stay informed and analyze opportunities to navigate the evolving crypto landscape effectively. Subscribe to the Markets Outlook newsletter for further insights into investment strategies and market trends.
