If the United States builds a Bitcoin reserve, how high will the price of Bitcoin go?
The price trend of Bitcoin has always attracted much attention. Recently, Matt Hogan, chief investment officer of Bitwise, the largest cryptocurrency fund management company in the United States, predicted that if the United States establishes a national Bitcoin reserve, its price is expected to soar to $500,000, which may be nearly 400% higher than the current price (currently the price of Bitcoin is $100,475).
Earlier, after Federal Reserve Chairman Powell said on Wednesday that he did not intend to hold digital currency and was cautious about cutting interest rates next year, the price of Bitcoin plummeted, falling nearly 5% in the past 24 hours, but it hit a record high of more than $108,000 earlier this week.
Hogan said that if the United States buys Bitcoin, it will lead more countries to follow suit. He said that although he was initially skeptical about the idea of establishing a national Bitcoin reserve proposed by Trump during the campaign, the idea "has not disappeared" now. Wyoming Senator Cynthia Loomis proposed a new encryption bill, and more people in the Trump administration are open to it. Trump also hinted at related intentions again in an interview at the New York Stock Exchange last week.
Hogan believes that the probability of this happening is less than 50%, but not zero. Once it happens, Bitcoin will soar, and the rise in 2024 will be mild by comparison.
Putting aside the factor of Bitcoin strategic reserves, Hogan believes that as investor demand rises, Bitcoin is expected to rise to $200,000 in the next year, and its demand mainly comes from ETFs, Microstrategy and potential government buyers.
Standard Chartered Bank has accurately predicted that Bitcoin will climb to $100,000 this year, and now also expects Bitcoin prices to reach $200,000 by the end of 2025. Some bulls boldly predict that Bitcoin will rise to $500,000 or even higher.
As Trump's second term is approaching, Wall Street's optimism about cryptocurrencies is becoming more and more obvious.
