The cryptocurrency world is buzzing with speculation that President-elect Donald Trump may issue a groundbreaking executive order to designate Bitcoin as a U.S. reserve asset. According to Jack Mallers, CEO of Strike, such a move could set the stage for a historic $20 billion Bitcoin purchase as early as January 2025.
The Case for Bitcoin as a Reserve Asset
In a recent podcast interview with YouTuber Tim Pool, Mallers shared insights into a potential executive order that Trump could invoke on his first day in office. This order might draw on provisions from a proposed “Dollar Stabilization Act,” granting the President broad authority to safeguard the U.S. dollar.
“There’s potential to use a day-one executive order to purchase Bitcoin,” Mallers revealed. “It wouldn’t be the size and scale of 1 million coins, but it would be a significant position.”
This aligns with the objectives of the Bitcoin Act of 2024, introduced by pro-crypto Senator Cynthia Lummis in July. The Act proposes that the U.S. Treasury and Federal Reserve acquire 200,000 BTC annually over five years, amassing a total of 1 million Bitcoin. The plan also mandates a 20-year holding period, effectively removing 5% of Bitcoin’s total supply from circulation.
Implications for Bitcoin’s Price
The potential adoption of Bitcoin as a reserve asset has sparked ambitious price forecasts for 2025. Industry leaders suggest that such a policy could transform the cryptocurrency’s valuation landscape.
Perianne Boring, founder of The Digital Chamber, believes Bitcoin’s finite supply could drive exponential price growth if Trump’s administration embraces crypto-focused policies. “If Donald Trump is successful in putting forth the proposals he’s shared with the crypto community, the sky is the limit because Bitcoin has a fixed supply,” Boring said in an interview with Fox Business.
Citing the widely-discussed stock-to-flow model, Boring and other analysts forecast Bitcoin’s price to exceed $800,000 by the end of 2025. This would elevate Bitcoin’s market cap to an unprecedented $15 trillion, up from its current valuation of over $2 trillion.
PlanB, the creator of the stock-to-flow model, offers a slightly tempered outlook, predicting Bitcoin’s average price at $500,000 across 2025, with potential peaks reaching as high as $1 million.
A New Era for U.S. Monetary Policy?
If executed, this plan would not only solidify Bitcoin’s status as a global asset but could also redefine the United States’ approach to monetary policy. By integrating Bitcoin into its reserve strategy, the U.S. would signal a historic shift toward digital assets in traditional finance.
While these developments remain speculative, the mere possibility of a $20 billion Bitcoin buy by the U.S. government is already fueling excitement and anticipation across financial markets. If realized, the move could herald a transformative era for Bitcoin and the broader crypto industry.
As we approach 2025, all eyes are on Washington—and on Bitcoin. Will Trump’s administration make history by embracing the world’s first decentralized currency? Only time will tell.
