30s Summary

Donald Trump may consider making Bitcoin an American reserve asset on his first day in office, according to Strike founder Jack Mallers. He suggests this could occur through an executive order under the “Dollar Stabilization Act”. The Bitcoin Act of 2024 encourages the US Treasury and the Federal Reserve to acquire 200,000 Bitcoins each year for the next five years. This could potentially drive up Bitcoin’s price and market value significantly. The stock-to-flow model predicts Bitcoin could reach a value of $800,000 by the end of 2025 due to increased demand.

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So, here’s the scoop: Donald Trump might make a first-day move in office to name Bitcoin as an American reserve asset. That’s what Jack Mallers, the big-wig and founder of Strike, suggests.

Will there be a massive Bitcoin buy order landing in January 2025?

Hanging out with YouTuber Tim Pool on his podcast, Mallers chatted about how Trump might lean on parts of the “Dollar Stabilization Act”, which gives him the muscle to guard the American dollar.

“There’s a chance Trump could drop an executive order to buy Bitcoin on day one,” said Mallers. But don’t expect a rain of coins. He thinks the buy wouldn’t be colossal, like a million coins, but it would pack a punch.

The Bitcoin Act of 2024 is interesting. Pro-crypto Senator Cynthia Lummis launched it in July, and it suggests that America’s Treasury and the Federal Reserve should buy up 200,000 Bitcoins annually over the next five years. That’s 1 million Bitcoins in total.

These Bitcoins will sit on ice for at least 20 years which means they’ll take 5% of Bitcoin’s total, 21 million tokens, out of the game. A lot of folks are predicting this move could shoot Bitcoin’s value way, way up for 2025 and beyond.

Could Bitcoin’s price soar to $800,000 by the tail end of 2025?

Perianne Boring, who started The Digital Chamber, thinks there’s big money ahead for Bitcoin, especially if Trump succeeds with his crypto strategies. In an interview with Fox Business, she said, “If Donald Trump nails his crypto proposals, the sky’s the limit because Bitcoin’s supply is fixed.”

Boring mentioned the stock-to-flow model which predicts Bitcoin’s price might skyrocket beyond $800,000 by the end of 2025. That could push Bitcoin’s market worth to a wild $15 trillion, far higher than its current value of over $2 trillion.

PlanB, the brain behind the stock-to-flow model, estimates Bitcoin to sit at around $500,000 on average in 2025. However, he reckons the price might even break the $1 million barrier.

Does the stock-to-flow model’s prediction pivot on Bitcoin demand?

The theory that the US Treasury might gather 200,000 Bitcoins every year boosts the idea that demand will get stronger over the next few years. It might even encourage other countries to think about having their own Bitcoin reserve.

BlackRock, handling a mind-boggling $10 trillion in assets, is already telling investors to invest 1-2% of their portfolio in Bitcoin. With global reserve assets valued at $900 trillion, a 2% allocation to Bitcoin could, theoretically, explode the cryptocurrency’s price to around $900,000 per unit.

Remember, always do your own research before making any investment. There’s no such thing as a risk-free move in trading.