With one week to go before Trump takes office, can Bitcoin reserves spark an unprecedented rally in the cryptocurrency market?

Author: Dmytro Spilka

Compiled by: Vernacular Blockchain

In 2025, the future of Bitcoin is full of expectations, and market giants are setting their sights on Trump's return, hoping that this event will become an important catalyst for the growth of the crypto market throughout the year.

1. Bitcoin breaks all-time high

After Trump won the presidential election on November 5, 2024, Bitcoin exceeded the $100,000 milestone for the first time. As Trump was officially sworn in on January 20, 2025, the popularity of the Bitcoin market was pushed to higher expectations.

Market confidence has grown exponentially, boosted by Trump's promised regulatory easing and strategic Bitcoin reserve plan. According to FX Street, cryptocurrency adoption among 18 to 25-year-olds surged 683% after the presidential election, and Bitcoin's price ceiling became a hot topic in the market.

2. The future of Bitcoin: How will Trump’s second term affect the

market?

Could Trump’s policies push Bitcoin to unprecedented highs? Will the establishment of the Strategic Bitcoin Reserve become a watershed in the history of Bitcoin development? Let’s dig into the possible implications.

1) Build a Bitcoin reserve

During last year’s election campaign, Trump promised that all Bitcoin currently held by the U.S. government and Bitcoin purchased in the future would be included in the “National Strategic Bitcoin Reserve.” He likened the plan to U.S. oil reserves, arguing for the need to move quickly to amass large reserves ahead of competing countries such as China.

Trump’s plan is not the first in the world. As early as 2021, El Salvador used Bitcoin as a reserve asset and currently holds a total of 6,150 Bitcoins, which is approximately US$600 million at current prices.

While the specific details of Trump’s Bitcoin reserve plan are unclear and there is uncertainty about whether it will actually be implemented, there are indications that this plan may be proposed with reference to Republican Senator Cynthia Lummis The “BITCOIN Act” (Boosting Innovation, Technology and Competitiveness Through Optimized Investment Nationwide).

According to analysis by Maxim Manturov, director of investment research at Freedom24, “Under the so-called BITCOIN Act, the United States must accumulate 1 million Bitcoins in the next 20 years, equivalent to about 5% of the total supply. The limited Bitcoin supply is expected to push up its prices, and by accumulating Bitcoin now, the United States may help offset growing debt problems in the future.”

Since the total supply of Bitcoin is limited to 21 million, this means that 5% of the supply is equivalent to 1.05 million Bitcoins, which is worth more than $100 billion at current valuations.

2) The imbalance between supply and demand will push up prices

Along with the huge demand for Bitcoin ETF funds, this supply and demand imbalance may further drive prices higher. Manturov noted that against this backdrop, market forecasts for Bitcoin prices range from $125,000 in 2025 to $2.9 million in 2050.

Whether Trump’s policy will come to fruition is uncertain, but if this plan is implemented, the United States may not only become the front-runner in Bitcoin reserves, but also have a profound impact on the future of the crypto market. Bitcoin’s historic moment may be coming.

3. How high can Bitcoin rise?

The timing of Trump's return to the presidency is particularly critical because Bitcoin has just completed its fourth "halving event" in 2024. This is a preset mechanism that occurs automatically every four years or so, with each halving halving the Bitcoin rewards miners receive through computing power.

1) Halving event and market rise

Bitcoin halving events automatically increase the scarcity of newly minted Bitcoins, a mechanism that historically has typically triggered market rallies and driven Bitcoin prices to all-time highs.

As a result, expectations for Bitcoin’s performance in the first half of 2025 are already extremely high, and the optimism brought about by Trump could further drive Bitcoin adoption.

2) Trump’s price expectations

According to sources, Trump privately hopes that Bitcoin will reach $150,000 early in his presidential term and views it as an alternative to the stock market.

Trump’s son Eric Trump is even more radical. He said at the Bitcoin Conference MENA in December that the future price of Bitcoin may reach $1 million.

Although the speculative nature of cryptocurrencies and the volatility of global markets and geopolitics make this prediction full of uncertainty, it is not impossible that Bitcoin may reach the goal of $1 million in the future, considering investor enthusiasm and the limitations of Bitcoin supply. Imagine.

However, in 2025, the price of Bitcoin may be closer to Trump’s $150,000 prediction. But if market sentiment continues to grow, $150,000 may appear too conservative.

4. Potential problems still exist

A key challenge facing the Trump administration is lingering uncertainty about Bitcoin’s future prospects.

John Prasad, senior investment expert at Mirabaud Group, pointed out that the future of Bitcoin is both full of potential and accompanied by uncertainty. He cited inflationary pressures, liquidity issues, the global regulatory landscape and controversy as a store of value as reasons why Bitcoin's growth is not yet fully guaranteed.

Chris Lyman, Washington bureau chief of The Nation, believes that the increased acceptance of cryptocurrencies in the United States could lead to a surge in scams and “pump-and-dump” schemes, which former SEC Chairman Gary Gen. The target that Sler worked hard to hit.

Although Gensler's departure is welcomed by the crypto community, if the regulatory framework is lax, the credibility of the entire crypto market may be affected as a result.

5. Trump’s transformative influence

There is no doubt that the new Trump administration will become one of the most influential forces on the cryptocurrency ecosystem since the advent of Bitcoin in 2009.

Trump's pledge to build a Bitcoin reserve and implement crypto-friendly policies is driving market expectations for 2025 to be a banner year for the crypto market. Many speculative investors have assumed that a strong rise in Bitcoin prices is almost a certainty.

However, the speculative nature of the industry leaves uncertainty lingering, and in an open regulatory environment, bad actors could further damage the credibility of cryptocurrencies.

Trump will undoubtedly play an important role in the future of Bitcoin and the entire cryptocurrency ecosystem, but there are still many unknowns about how his second term will affect this market.