Author: Dmytro Spilka

Compiled by: Bai Hua Blockchain

In 2025, the future of Bit is full of expectations, and industry giants are turning their attention to the return of Trump, hoping that this event will become an important catalyst for the growth of the encryption market throughout the year.

1. Bit breaks new historical highs

After Trump won the presidential election on November 5, 2024, Bit broke the milestone of $100,000 for the first time. With Trump's formal inauguration on January 20, 2025, the heat of the Bit market has been pushed to higher expectations.

Boosted by Trump's promise of regulatory relaxation and the strategic Bit reserve plan, market confidence has grown exponentially. According to data from FX Street, 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 drive Bit to unprecedented new highs? Will the establishment of a strategic Bit reserve become a watershed moment in the history of Bit 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 US government, as well as future purchases, in the "National Strategic Bit Reserve". He likened this plan to the US oil reserve, and proposed 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 since 2021, and currently holds 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 also 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 US must accumulate 1 million Bit within the next 20 years, which is about 5% of the total supply. The limited Bit supply is expected to drive up its price, and the US may help offset its growing debt problem by accumulating Bit now."

With the total Bit supply capped at 21 million, 5% of the supply is equivalent to 1.05 million Bit, which is worth over $100 billion at current valuations.

2) Supply-demand imbalance will drive up prices

Accompanied by the huge demand for Bit ETFs, this supply-demand imbalance may 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 US may not only become the leader in Bit reserves, but also have a profound impact on the future of the encryption market. The historic moment for Bit may be arriving.

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 automatically halves the Bit reward for miners every four years or so.

1) Halving events and market rallies

The Bit halving event automatically increases the scarcity of newly generated Bit, and historically, this mechanism has often triggered market rebounds and pushed Bit prices to new highs.

Therefore, the first half of 2025 already has extremely high expectations for Bit's performance, and the optimistic sentiment brought by Trump may further drive the adoption of Bit.

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 is even more aggressive, stating at the December Bitcoin Conference MENA that Bit's future price could reach $1 million.

Although the speculative nature of cryptocurrencies and the volatility of global markets and geopolitics make such forecasts highly uncertain, considering investor enthusiasm and the limited Bit supply, the $1 million target for Bit in the future is not inconceivable.

However, in 2025, Bit's price is likely to be closer to Trump's $150,000 forecast. But if market sentiment continues to grow, $150,000 may seem too conservative.

4. Potential issues 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 full of potential but also accompanied by uncertainty. He cites inflationary pressures, liquidity issues, the global regulatory outlook, and controversies over its use 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 US may lead to a surge in scams and "pump and dump" schemes, which former SEC chairman Gary Gensler has been working hard to combat.

While Gensler's departure is welcomed by the crypto community, a lax regulatory framework could undermine the credibility of the entire crypto market.

5. Trump's transformative impact

Undoubtedly, 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 an important role in the future of Bit and the entire cryptocurrency ecosystem, but how his second term will affect this market remains uncertain.