Bitcoin Reaches New High Of $94,000: Blockstream CEO Anticipates $1 Million Ahead

Bitcoin (BTC) has achieved a historic milestone, reaching $94,000 for the first time, fueled by a significant uptrend since November 5, the day President-elect Donald Trump secured his re-election. Trump’s promise to bring regulatory clarity to digital assets has ignited a strong rally, with BTC recording a 40% increase in just two weeks.

This surge reflects increased buying pressure and correlates with growing inflows into Bitcoin exchange-traded funds (ETFs). Yet, speculation surrounding a potential US Bitcoin strategic reserve has further bolstered investor confidence. 

Blockstream CEO Adam Back, a long-time advocate for Bitcoin, has suggested that if the US were to establish a strategic Bitcoin reserve, investors should prepare for the possibility of seven-figure Bitcoin prices in this market cycle. Back stated:

if the US Strategic Bitcoin Reserve happens prepare for 7 figure Bitcoin. this cycle. the market is skeptical on meaningful follow through for now, so that is not at all priced in.

Market expert Anthony Pompliano highlighted that discussions around this initiative are intensifying as pro-crypto Senator Cynthia Lummis has introduced legislation to put the reserve into action, while Trump has previously committed to utilizing the approximately 200,000 BTC already held by the US government. 

Despite these proposals, Pompliano argues that they do not go far enough. He advocates for a more aggressive approach, suggesting that the US should print $250 billion on the first day of Trump’s presidency and invest the entire amount into Bitcoin. 

Pompliano outlines that the proposed $250 billion investment could purchase nearly 2.8 million BTC at the current price. However, recognizing that the US government’s purchases would likely influence market prices, he estimates the average purchase price could rise to $150,000 per coin, resulting in the acquisition of approximately 1.6 million BTC. 

Combined with the 200,000 Bitcoin already held, this would position the US as the largest holder of Bitcoin globally, with a total of 1.8 million BTC. Pompliano asserts that this strategy, while seemingly costly, would represent a prudent financial move with the potential for significant long-term benefits. 

At the time of writing, BTC is trading at $93,770, up 5% on the weekly time frame. 

Featured image from DALL-E, chart from TradingView.com