Donald Trump will likely issue an executive order designating Bitcoin (BTC) as a US reserve asset on his first day in office, according to Jack Mallers, CEO and founder of Strike.
Will the 200,000 Bitcoin purchase order come out in January 2025?
In a podcast interview with YouTuber Tim Pool, Mallus explained that the next president could rely on provisions of the so-called Dollar Stabilization Act, which would give him significant powers to protect the U.S. dollar.
Mallers added, “There is a possibility that we will use an executive order on day one to buy Bitcoin.”
“It won’t be the size and scale of a million coins, but it will be a significant location.”
The Bitcoin Act of 2024, introduced by cryptocurrency advocate Senator Cynthia Lummis last July, proposes that the Treasury and Federal Reserve purchase 200,000 BTC annually over five years, accumulating 1 million BTC. do.
The reserve will be maintained for at least 20 years, leaving 5% of the total Bitcoin supply (21 million tokens) in circulation.
These speculations have led to new BTC price targets for 2025 and beyond.
Bitcoin price could reach $800,000 by the end of 2025.
According to Perianne Boring, founder of The Digital Chamber, limiting the supply of Bitcoin could lead to significant price increases, especially if Trump successfully implements many of his proposed cryptocurrency policies.
“If Donald Trump is successful in rolling out many of the proposals he has made to the (crypto) community, the sky is the limit because the supply of Bitcoin is fixed,” Boring said in an interview with Fox Business.
She pointed to a stock-to-flow model that predicts the Bitcoin price will exceed $800,000 by the end of 2025. This surge would increase Bitcoin’s market capitalization from its current value of over $2 trillion to around $15 trillion.
Meanwhile, PlanB, creator of the Stock-to-Flow model, predicts that Bitcoin will have an average valuation of around $500,000 in 2025. But he believes the price could rise to $1 million.
source: Plan B
BlackRock suggests a 1-2% portfolio allocation to Bitcoin.
The Stock-to-Flow model’s Bitcoin price prediction relies on the assumption that demand for BTC will continue to grow.
The U.S. Treasury theoretically accumulating 200,000 BTC per year reinforces the idea of stronger demand in the coming years. This is because it will likely force other counties to consider strategic Bitcoin reserves of their own.
relevant: Bitcoin price to surge in 2025 due to ‘demand shock’ — Sygnum
BlackRock, which manages more than $10 trillion in assets, has already recommended investors allocate 1% to 2% of their portfolios to Bitcoin.
Four of the company’s senior executives, including Samara Cohen, ETF Chief Investment Officer, and Paul Henderson, Chief Portfolio Strategist at BlackRock Investment Institute, said they had “appropriate governance and risk tolerance.” “We are seeing examples of investors being able to include Bitcoin in their multi-asset portfolios,” he said. , said in a report published on December 12.
To put this into perspective, the total value of global reserve assets is approximately $900 trillion. In theory, allocating 2% to Bitcoin from this pool would push the price of the cryptocurrency to around $900,000 per unit.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.