Bitcoin Price Predictions: Trump’s Executive Order Could Send BTC to $800,000 by 2025
In a recent podcast interview with YouTuber Tim Pool, Jack Mallers, founder and CEO of Strike, shared some insights on the potential impact of President-elect Donald Trump’s executive order designating Bitcoin as a United States reserve asset. According to Mallers, this move could be executed as early as January 2025.
The Dollar Stabilization Act: A Key Provisions
Mallers pointed out that Trump has considerable authority under provisions within the so-called ‘Dollar Stabilization Act.’ This act grants him the power to protect the US dollar and potentially use it to purchase Bitcoin. While Mallers noted that this wouldn’t be a massive 1 million-coin buy, it would still be a significant position.
TheBitcoin Act of 2024: A Proposal for a Large-Scale BTC Purchase
In July, Senator Cynthia Lummis introduced TheBitcoin Act of 2024, which proposes the Treasury and Federal Reserve purchasing 200,000 BTC annually over five years. This would accumulate 1 million Bitcoin, taking 5% of the total supply (21 million tokens) from circulation. The reserve would be held for at least 20 years.
Speculation and Price Targets
These speculations have led to some lofty new BTC price targets for 2025 and beyond. Bitcoin’s capped supply could lead to significant price appreciation, especially if Trump successfully implements many of his proposed crypto policies.
Perianne Boring on the Stock-to-Flow Model
According to Perianne Boring, founder of The Digital Chamber, Bitcoin’s fixed supply is a key factor in predicting its price. She pointed out that the stock-to-flow model 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’s Predictions
PlanB, the creator of the stock-to-flow model, predicts Bitcoin to average around a $500,000 valuation across 2025. However, he also mentioned that the price may go as high as $1 million.
Stronger Demand and Growing Institutional Interest
The stock-to-flow model’s Bitcoin price prediction hinges on the assumption that demand for BTC will continue to increase. The US Treasury’s theoretical accumulation of 200,000 BTC each year reinforces this idea, as it would likely force other countries to consider strategic Bitcoin reserves of their own.
BlackRock’s Recommendation
BlackRock, which manages over $10 trillion worth of assets, is already recommending investors allocate 1-2% of their portfolios to Bitcoin. This move reflects growing institutional interest in the cryptocurrency market and supports the idea that demand for BTC will continue to increase.
Theoretical Impact on Global Reserve Assets
To put this into perspective, the total global reserve assets are valued at about $900 trillion. A 2% allocation to Bitcoin from this pool would theoretically drive the cryptocurrency’s price to around $900,000 per unit.
Conclusion
While investment decisions should be made based on individual research and risk tolerance, the predictions mentioned above highlight the potential for significant growth in the value of Bitcoin. The impact of Trump’s executive order and growing institutional interest in the cryptocurrency market will continue to shape the future of the digital currency landscape.
Related Reading:
- 2025 ‘demand shocks’ will spike Bitcoin’s price — Sygnum
- The Digital Chamber
