Expectations are high for Bitcoin in 2025, and the largest market players are hoping that the return of Donald Trump will be the catalyst for significant growth throughout the year.
The world’s oldest and most famous cryptocurrency had already surpassed $100,000 for the first time following Trump’s election victory on November 5, but the targets are much higher for the months that follow. inauguration of the president-elect on January 20.
Buoyed by promises of deregulation and a “strategic Bitcoin reserve,” confidence in the cryptocurrency industry has grown at an exponential rate. FX Street Data Suggests Crypto Adoption Among 18-25 Year Olds Has Accelerated
So, what will happen to Bitcoin during Trump’s second term in the White House? And could creating a reserve push the coin to new all-time highs? Let’s take a closer look at what could become a watershed moment for the cryptocurrency landscape:
Build a Bitcoin Reserve
During the election campaign last year, Donald Trump promised to
Trump compared his proposed strategic Bitcoin reserve to the U.S. oil reserve and suggested moving quickly to get ahead of competition from China or another country by building a large stockpile.
The United States’ potential adoption of Bitcoin will not be the first time a country has strategically turned to cryptocurrency as an investment tool. El Salvador adopted Bitcoin as a reserve asset in 2021 and has since
Although the finer details of Trump’s stockpiling plan, or whether it will ever come to fruition, are less certain, it could
“Under the so-called Bitcoin law, the United States must accumulate 1 million bitcoins within 20 years, with the aim of owning about 5% of the total supply,” explains Maxim Manturov, head of research in investment at Freedom24. “Assuming a limited supply of tokens drives up the price, accumulating bitcoin today could allow the United States to offset its growing debt problems in the years to come.”
Since Bitcoin mining is limited to a maximum supply of 21 BTC that can be created, 5% would equate to 1.05 million BTC, indicating a value over $100 billion at the current valuation.
“Coupled with the huge demand from ETF funds, this could create a strong imbalance between supply and demand. In this context, there are various expectations for the price of BTC, from $125,000 in 2025 to 2.9 million dollars by 2050,” Manturov added.
How far will Bitcoin go?
The timing of Trump’s return to the presidency is crucial as 2024 saw Bitcoin undertake its fourth “halving event”, which is a pre-programmed mechanism that occurs approximately every four years and halves the volume of BTC distributed to those who use computing power to mine Bitcoin. cryptocurrency.
Halving events automatically double the scarcity of Bitcoin created, which can historically lead to market rallies that result in new record values.
This means that expectations for Bitcoin were already high for the first half of 2025, and the additional optimism brought by Trump could worsen adoption of the cryptocurrency.
According to a source, Trump privately hopes that Bitcoin reaches a
Donald Trump’s son, Eric Trump, is more ambitious about the future rise in Bitcoin prices and claimed in December at the Bitcoin MENA conference that the value of 1 BTC
Given the popularity of Bitcoin and the purchasing power of investors despite its capped supply, it is not unreasonable to believe that Bitcoin could reach $1 million in many years to come, but given the speculative nature of cryptocurrency and the volatility of global markets and geopolitics, we can expect BTC to move closer to Eric’s father’s prediction in 2025.\
However, if sentiment continues to grow, an estimate of $150,000 might prove a bit conservative.
Concerns remain
One of the key issues the Trump administration will need to address is the continued and widespread uncertainty over the prospects for Bitcoin.
John Plassard, senior investment specialist at Mirabaud Group, asserted that the future of Bitcoin is
Chris Lehmann, DC bureau chief of The Nation, argued that the increase in crypto acceptance in the United States could lead to change.
Although Gensler’s departure from the SEC was largely welcomed by the cryptocurrency community, we could see the crypto landscape’s credibility struggle with a looser regulatory framework.
Trump’s transformative influence
There is no doubt that the new Trump administration will have the greatest influence on the emergence of the cryptocurrency landscape since the launch of Bitcoin in 2009.
Promises of a Bitcoin reserve and cryptocurrency-friendly regulation are helping to build expectations for a historic year for the cryptocurrency market, with many speculative investors assuming rising prices are assured.
However, the speculative nature of the industry means uncertainty persists and crypto’s credibility could be undermined by nefarious characters in an open regulatory climate.
Trump will be an influential player in the future of Bitcoin and the broader cryptocurrency landscape, but what that will look like throughout his second term remains less clear.
