Could Trump's Bitcoin Reserve Spark an Unprecedented Rally in Crypto Markets?

Compiled by: Bai Hua Blockchain


In 2025, the future of Bit is full of expectations, and industry giants will turn their attention to Trump's return, hoping that this event will become an important catalyst for the growth of the entire cryptocurrency market.

1. Bit breaks new historical highs

After Trump won the presidential election on November 5, 2024, Bit first broke the milestone of $100,000. And with Trump's official inauguration on January 20, 2025, the heat of the Bit market has been pushed to even higher expectations.
Buoyed by Trump's promises of regulatory relaxation and strategic Bit reserve plans, market confidence has grown exponentially. According to FX Street data, the adoption rate of cryptocurrencies among the 18-25 age group surged 683% after the presidential election, and the price ceiling of Bit has become a hot topic in the market.

2. The future of Bit: How will Trump's second term affect the market?

Will Trump's policies be able to propel Bit to unprecedented new highs? Will the establishment of a strategic Bit reserve become a watershed moment in the history of Bit's development? Let's explore the potential impacts.

1) Establishing a Bit reserve

In last year's campaign, Trump promised to include all the Bit currently held by the U.S. government, as well as future purchases, in the "National Strategic Bit Reserve." He likened this plan to the U.S. oil reserve, citing the urgency of rapid action to accumulate a large-scale reserve before competing countries like China.
Trump's plan is not a global first, as El Salvador has already adopted Bit as a reserve asset, currently holding 6,150 Bit, worth about $600 million at current prices.
Although the specific details of Trump's Bit reserve plan are still unclear, and its actual implementation is uncertain, there are indications that this plan may refer to the "BITCOIN Act" (Boosting Innovation, Technology and Competitiveness Through Optimized Investment Nationwide) proposed by Republican Senator Cynthia Lummis.
According to Maxim Manturov, head of investment research at Freedom24, "According to the so-called BITCOIN Act, the U.S. must accumulate 1 million Bit within the next 20 years, equivalent to about 5% of the total supply. The limited Bit supply is expected to drive up its price, and the U.S. accumulating Bit now may help offset its growing debt problem in the future."
Given that the total Bit supply is capped at 21 million, this means that 5% of the supply is equivalent to 1.05 million Bit, which at current valuations is worth over $100 billion.

2) Supply-demand imbalance will drive up prices

Accompanied by the huge demand for Bit ETFs, this supply-demand imbalance could further drive up prices. Manturov points out that in this context, market forecasts for Bit prices range from $125,000 in 2025 to $2.9 million in 2050.
Whether Trump's policies will materialize remains to be seen, but if this plan is implemented, the U.S. could not only become the leader in Bit reserves, but also have a profound impact on the future of the cryptocurrency market. The historic moment for Bit may be upon us.

3. How high can Bit go?

The timing of Trump's return to the presidency is particularly critical, as Bit just completed its fourth "halving event" in 2024. This is a preset mechanism that occurs about every four years, where the Bit mining rewards for miners are halved each time.

1) Halving events and market rallies

The Bit halving event automatically increases the scarcity of newly generated Bit, and historically this mechanism has typically triggered market rebounds and pushed Bit prices to new highs.
Therefore, the first half of 2025 already had extremely high expectations for Bit's performance, and the optimistic sentiment brought by Trump could further drive Bit's adoption.

2) Trump's price expectations

According to sources, Trump privately hopes that Bit will reach $150,000 in the early part of his presidential term, and sees it as an alternative to the stock market.
Trump's son Eric Trump was even more aggressive, stating at the Bit Conference MENA (Middle East and North Africa) in December that Bit's future price could reach $1 million.
While the speculative nature of cryptocurrencies and the volatility of global markets and geopolitics make such predictions highly uncertain, considering investor enthusiasm and the limited Bit supply, the $1 million target for Bit may not be unimaginable.
However, in 2025, Bit's price is likely to be closer to the $150,000 forecast proposed by Trump. But if market sentiment continues to grow, $150,000 may seem too conservative.

4. Potential problems remain

A key challenge facing the Trump administration is the lingering uncertainty over Bit's future prospects.
John Plassard, senior investment specialist at Mirabaud Group, points out that Bit's future is both full of potential and accompanied by uncertainty. He cites inflationary pressures, liquidity issues, the global regulatory outlook, and the controversy over Bit as a store of value as reasons why Bit's growth is not yet fully guaranteed.
Chris Lehmann, bureau chief of The National in Washington, believes that the rising acceptance of cryptocurrencies in the U.S. may lead to a surge in scams and "pump and dump" schemes, which are the targets of former SEC chairman Gary Gensler's efforts.
While Gensler's departure is welcomed by the crypto community, if the regulatory framework is too lax, the credibility of the entire crypto market could be affected.

5. Trump's transformative impact

There is no doubt that Trump's new administration will be one of the most influential forces on the cryptocurrency ecosystem since the birth of Bit in 2009.
Trump's promises to establish a Bit reserve and implement crypto-friendly policies are driving market expectations that 2025 will be a landmark year for the crypto market. Many speculative investors have already taken for granted the strong rise in Bit prices.
However, the speculative nature of the industry means that uncertainty remains, and in an open regulatory environment, bad actors may further damage the credibility of cryptocurrencies.
Trump will undoubtedly play a pivotal role in the future of Bit and the entire cryptocurrency ecosystem, but how his second term will impact this market remains uncertain.

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Source: https://hackernoon.com/could-a-trump-bitcoin-reserve-spark-an-unprecedented-cryptocurrency-market-rally