Trump To Make Bitcoin a US Reserve Asset on Day One — How High Could the Price Go?

If it goes ahead, such a bold move could prompt a $20 billion BTC purchase by the Treasury in 2025, potentially transforming the cryptocurrency landscape and driving Bitcoin’s price to unprecedented heights. The news drove Bitcoin to a new all-time high of $107,500 on Monday.

Source: BNC Bitcoin Liquid Index

Jack Mallers, speaking on Tim Pool’s podcast, suggested that Trump could invoke provisions under a hypothetical “Dollar Stabilization Act” to justify such a move. The Act, if passed, would grant the President authority to stabilize the dollar through strategic financial tools—including Bitcoin.

Mallers speculated:

“There’s potential to use a day-one executive order to purchase Bitcoin. It wouldn’t involve buying 1 million coins, but it would still represent a significant position.”

A legislative precursor to this idea already exists: the Bitcoin Act of 2024, introduced by pro-crypto Senator Cynthia Lummis. The Act proposes that the Treasury and Federal Reserve purchase 200,000 BTC annually over five years, eventually amassing 1 million BTC. These holdings would account for 5% of Bitcoin’s fixed supply and remain locked for at least 20 years, permanently removing them from circulation.

Speculation about such a large-scale purchase has sparked optimistic price predictions for Bitcoin. According to Perianne Boring, founder of The Digital Chamber, Bitcoin’s finite supply could lead to extraordinary price increases if Trump’s proposed policies are implemented.

“If Donald Trump successfully enacts his proposals, the sky is the limit for Bitcoin because of its fixed supply,” Boring explained in an interview with Fox Business.

She highlighted the stock-to-flow model, which forecasts Bitcoin reaching $800,000 by the end of 2025. This would increase Bitcoin’s market capitalization to $15 trillion, up from its current valuation of over $2 trillion. PlanB, the creator of the stock-to-flow model, projects Bitcoin to average $500,000 in 2025, with potential peaks as high as $1 million.

Source: PlanB

Adding weight to the speculation, BlackRock—the world’s largest asset manager—has encouraged investors to allocate 1-2% of their portfolios to Bitcoin. In a December 2024 report, BlackRock executives noted:

“We see a case for investors with suitable governance and risk tolerance to include Bitcoin in a multi-asset portfolio.”

If institutional investors follow BlackRock’s advice, the impact could be monumental. Total global reserve assets are valued at around $900 trillion. A modest 2% allocation of this capital to Bitcoin could drive its price to $900,000 per unit.

Source: BlackRock

A US Bitcoin reserve would likely set off a global domino effect, compelling other nations to follow suit. Increased adoption could trigger demand shocks, amplifying Bitcoin’s scarcity-driven price growth. Sygnum, a crypto-focused bank, forecasts that such shocks in 2025 will propel Bitcoin prices even higher as countries and institutions vie to secure a strategic share of the cryptocurrency.

While this remains speculative, the prospect of Bitcoin being elevated to a US reserve asset marks a paradigm shift in how governments and institutions perceive the cryptocurrency. Whether or not Trump enacts such a policy, the conversation itself reinforces Bitcoin’s growing status as a legitimate financial instrument on the global stage.If Trump moves forward with making Bitcoin a US reserve asset, the combination of limited supply, institutional adoption, and global competition could send Bitcoin prices into uncharted territory—possibly approaching $800,000 to $1 million by 2025. Whether as a reserve asset or an investment tool, Bitcoin’s role in the global economy appears poised for explosive growth.