A report by NCPPR proposes that tech giant Amazon allocate a portion of its $88 billion reserve to BTC to hedge against inflation, which has sparked optimistic sentiment in the market.
Tech giants like Amazon and Microsoft have large cash reserves on their balance sheets and are now seeking to establish BTC reserves, similar to what Tesla and MicroStrategy have done in the past. The latest report shows that the National Center for Public Policy Research (NCPPR) has submitted a proposal to add BTC to its balance sheet by April 2025 as part of its corporate financial strategy.
Will Amazon take a BTC initiative to protect its $88 billion reserve?
The free-market think tank NCPPR has suggested that Amazon invest a portion of its $88 billion cash reserve in BTC to hedge against inflation. The think tank also highlighted the greater advantages of BTC compared to traditional assets and corporate bonds, and pointed out how Tesla and MicroStrategy have succeeded in gaining BTC exposure in recent years.
NCPPR's report states that the metric used to measure inflation, the Consumer Price Index (CPI), currently stands at 4.95%, calling it a "very poor metric" for measuring currency devaluation. Author Tim Kotzman says the real inflation rate could be twice the reported CPI data.
The letter emphasizes that this significantly erodes Amazon's $88 billion in cash and short-term cash equivalents, and suggests using BTC (BTC) as a hedging tool to protect shareholder value. When comparing BTC price performance to corporate bonds, the report states:
"As of December 6, 2024, the BTC price has risen 131% year-over-year, outperforming corporate bonds by an average of 126%. Over the past five years, the BTC price has risen 1,246%, outperforming corporate bonds by an average of 1,242%."
Due to the massive selling pressure from long-term holders, BTC faces strong resistance at the $100,000 level. However, any news of Amazon's acquisition could bring strong liquidity to the asset.
Interestingly, this development comes as Microsoft shareholders prepare to vote on including BTC on the company's balance sheet. MicroStrategy chairman Michael Saylor has shared a blueprint with the tech giant aimed at bringing an additional $5 trillion in value to Microsoft shareholders.
Will BTC reach $200,000 by 2025?
Cryptocurrency market analysts believe this is the start of a BTC super-cycle, and that the BTC price could continue to rise to $200,000 by the end of 2025. Banking giant Standard Chartered Bank predicts that it is entirely possible for BTC to reach $200,000 by the end of 2025. In a report shared with investors, Standard Chartered Bank analyst Geoff Kendrick said:
"We would be even more bullish if the pace of BTC purchases by US pension funds, global sovereign wealth funds, or a potential US strategic reserve fund were to accelerate. We expect institutional fund flows to continue at or exceed 2024 levels by 2025. MicroStrategy is ahead of its $42 billion three-year plan, so its 2025 purchases should match or exceed 2024 levels."
As of the time of writing, the BTC price has fallen 0.45% to $99,786, with a market cap of $1.97 trillion, while its daily trading volume has surged 30% to over $53 billion. Considering that BTC's last run to an all-time high saw daily trading volumes exceed $100 billion, this trend has significantly cooled down.
