In a striking turn of events, Donald Trump may consider an executive order to designate Bitcoin (BTC) as a reserve asset for the United States on his very first day in office. This information has surfaced from a recent discussion involving Jack Mallers, the CEO of Strike, hinting at a potential $20 billion Bitcoin purchase in 2025 that could reshape the cryptocurrency landscape.
During a podcast interview with Tim Pool, Mallers explained that the new administration could invoke provisions from the Dollar Stabilization Act. This act supposedly grants significant power to the president to stabilize the US dollar, and could facilitate the immediate purchase of Bitcoin: “There’s potential to use a day-one executive order to purchase Bitcoin,” Mallers noted. He clarified that while the purchase wouldn’t be on the scale of a million coins, it would still reflect a substantial position in the market.
The implications of such a move are not to be underestimated. A legislative proposal called the Bitcoin Act of 2024 aims to have the US Treasury and Federal Reserve acquire 200,000 BTC annually for five years, thereby accumulating a total of one million BTC. This would effectively take 5% of Bitcoin’s fixed supply of 21 million tokens out of circulation, potentially causing dramatic shifts in its price dynamics.
Speaking of price, analysts are forecasting a bullish sentiment for Bitcoin. Perianne Boring, founder of The Digital Chamber, predicts Bitcoin could soar to $800,000 by the end of 2025. She emphasizes that the finite nature of Bitcoin’s supply combined with Trump’s policy efforts could lead to substantial price increases: “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 a recent interview. Furthermore, PlanB, known for the stock-to-flow model, anticipates Bitcoin might average around $500,000 with potential peaks reaching $1 million.
Adding another layer to the discussion, investment giant BlackRock has recently recommended a 1-2% allocation of investor portfolios towards Bitcoin, given the increasing interest and strategic importance it may hold in the coming years. With total global reserve assets valued at around $900 trillion, a mere 2% allocation could hypothetically raise Bitcoin to around $900,000 per unit.
The intersection of political strategy and cryptocurrency is not merely speculative; it hints at a future where Bitcoin could redefine traditional finance. However, it’s crucial to remember that all investments carry risks, and potential investors should conduct thorough research before making financial decisions.
