Trump could issue an executive order designating Bitcoin as a US reserve asset, potentially prompting $20 billion in BTC purchases by 2025.
Strike founder and CEO Jack Mallers has said that President-elect Trump will issue an executive order on his first day in office designating Bitcoin as a US reserve asset.
Will there be a 200,000 Bitcoin purchase order in January 2025?
In an interview on YouTuber Tim Pool’s podcast, Marles said that Trump could rely on the provisions of the so-called Dollar Stabilization Act, which gives him the power to protect the dollar. “One day, a transaction order can be used to buy Bitcoin,” Malles said, adding:
“It’s not the size and scale of 1 million coins, but it’s a significant opportunity.”
Pro-cryptocurrency Senator Cynthia Lummis introduced the Bitcoin Act of 2024 in July, which would have the Treasury Department and Federal Reserve purchase 200,000 Bitcoins per year for five years, for a total of 1 million Bitcoins.
The reserve would be held for at least 20 years, reducing the total Bitcoin supply by 5% (21 million coins).
This idea has led to several new, higher BTC price targets for 2025 and beyond.
Bitcoin price could hit $800,000 by the end of 2025
Perianne Boring, founder of the Digital Chamber, said that Bitcoin supply restrictions could boost the price significantly, especially if Trump succeeds in implementing many of his cryptocurrency policies.
“If Donald Trump succeeds with the many proposals he has made to the [crypto] community, the sky is the limit because Bitcoin supply is set,” Boring told Fox Business in an interview. He said the stock-to-flow model predicts that the price of Bitcoin will rise to $800,000 by the end of 2025. Such a rise would push Bitcoin’s market cap to $15 trillion from its current value of more than $15 trillion. $2 trillion.
PlanB, the creator of the stock-to-flow model, says that by 2025, the average Bitcoin price will be around $500,000.
BlackRock recommends allocating 1-2% of a portfolio to Bitcoin
Stock-to-flow model Bitcoin price predictions rely on the assumption that demand for Bitcoin will continue to rise. The US Treasury’s annual accumulation of 200,000 Bitcoins reinforces the idea of strong demand, as other countries may consider creating their own strategic Bitcoin reserves.
BlackRock, which manages more than $10 trillion in assets, has recommended that investors allocate 1-2% of their portfolio to Bitcoin.
“We believe that investors with the right management and risk tolerance can include Bitcoin in a multi-asset portfolio,” said the four executives, including senior ETF investment manager Samara Cohen and senior investment advisor Paul Henderson at BlackRock Investment Research 12.
To put that into perspective, the total global reserve assets are about $900 trillion. In theory, 2% allocated to Bitcoin from this pool would bring the cryptocurrency’s price to $900,000 per unit.
