Donald Trump was a crypto critic when he last held office as president of the United States.
Despite these odds, Bitcoin still surged by more than 2,000% in price
He is back at the White House as a crypto advocate this time.
Analysts see a possible price explosion once again, which could take Bitcoin to $250,000 in the short term and $1 million in the long term.
As Donald Trump secures a second term in the White House, questions are starting to arise about Bitcoin’s future.
Throughout the campaign, Trump promised to make the U.S. a “Bitcoin superpower” and reduce regulatory hurdles.
These promises have left analysts buzzing with optimism about how much the crypto sector will grow if he keeps them.
Interestingly, Bitcoin surged by nearly 2,000% the last time Trump was in office.
The question now is:
Is Bitcoin primed to repeat the same thing and surge past the $1 million mark again?
Donald Trump used to be a major Bitcoin critic during his first term in office.
He repeatedly bashed the cryptocurrency, calling it “highly volatile” and “based on thin air.”
Not a fan of Bitcoin
However, Bitcoin defied these odds and surged from around $700 to over $19,000 between 2016 and 2020.
This rally stunned the global financial markets and was one of the earliest examples of Bitcoin's mass adoption.
Said rally also laid the groundwork for today’s belief that a pro-Bitcoin president could take prices to new heights.
Trump’s shift from critic to crypto advocate has encouraged analysts to predict that his policies could be a boon for digital assets.
The U.S. president has promised to create a crypto-friendly environment within the U.S. and turn the country into a “Bitcoin superpower.”
He aims to create an economic space where Bitcoin and other digital assets thrive.
Analysts have already seen this pro-crypto stance at work, with Bitcoin surging to $70,000 after Trump survived an assassination attempt in Pennsylvania.
The cryptocurrency also jumped to a new high of $76,400 immediately after his election win.
Many crypto advocates have made bold predictions about Bitcoin reaching $1 million.
For many of them, Trump’s second term could be the catalyst.
One of these people is Cathie Wood, the CEO of ARK Invest. Wood is known for one of her biggest predictions: that BTC will hit the million-dollar mark by 2030.
Another is Henry Arslanian, co-founder of Nine Blocks Capital Management, who stated on Twitter that Trump’s policies could push for more institutional investment.
The interesting thing about these predictions is that if Bitcoin were to repeat its 2,000% price surge from 2016, investors could see its price tag soar beyond $1.5 million.
This would make it an asset class with gold and one of the largest global assets.
However, as optimistic as these predictions are, Bitcoin hitting $1 million depends on many variables and might not be so easy.
While some are looking to the long term, other experts see Bitcoin performing well in the short term as well.
According to a recent YouTube update from 10x Research, Bitcoin could reach $100,000 by January 2025.
This is based on how Bitcoin often gains an average of 40% after hitting a six-month high.
Possible $250k valuation on Bitcoin
Independent analyst Mags is even more bullish. In a recent tweet, the analyst predicted that Bitcoin may hit $250,000 in the next 12 months.
According to the analyst, similarities with past post-election price surges always cause price upswings.
For example, Bitcoin gained 2747% in 2016 and 360% in 2020.
With a pro-Bitcoin president in power, Mags believes that a 240% gain could take BTC to a quarter-million-dollar valuation.
Bitcoin's price rallies to new highs must come with as many legislative changes.
One of these changes is from the proposal by U.S. Senator Cynthia Lummis about creating a U.S. Bitcoin reserve.
Lummis wants the U.S. to consider holding Bitcoin as a strategic reserve asset, similar to how the government buys and stores gold.
The U.S. currently holds around 8,133 metric tons of gold.
Keep in mind that a hypothetical $200 billion Bitcoin reserve would only be about 2.5% of this gold stash:
A small amount that could make all the difference.
Interestingly, if Donald Trump supported this reserve bill, he could issue an executive order to the U.S. Treasury to divert funds toward Bitcoin.
However, there have been concerns about putting a volatile asset like Bitcoin in national reserves.
Considering how establishing this Bitcoin reserve requires bipartisan support, the proposal could have a hard time being approved.
Most of the disapproval would likely come from traditionalists in Congress, who view crypto as too unstable for national reserves.
Considering ongoing issues in U.S. economics, such as inflation and the $35 trillion national debt, the possibility of establishing a Bitcoin reserve seems even bleak.
Even if Trump were to back this move, a Bitcoin reserve proposal could face an uphill battle in Congress.
Overall, the proposal’s fate depends on several factors, and time will tell whether a strategic Bitcoin reserve will be a key driver of Bitcoin's $1 million march.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.