Blockware Solutions says Bitcoin’s price could quadruple in 2025, or increase by 58 percent in a worst-case scenario, depending on Donald Trump’s Strategic Bitcoin Reserve plan and Fed policies.
According to the report, Bitcoin’s “bear scenario” price target is predicted to be $150,000. This situation is associated with Donald Trump’s failure to implement the Strategic Bitcoin Reserve plan. It is stated that Bitcoin, which is currently below $95,000, could increase by 58 percent in this scenario. In addition, the Fed’s unexpected change in interest rate reduction policy and long-term Bitcoin holders turning to aggressive sales could have a negative impact on the price.
What does the base case show?
The “baseline scenario”, which paints a more optimistic picture, predicts that Bitcoin’s price could reach $225,000. This forecast seems possible if the US government considers Bitcoin assets as a Strategic Bitcoin Reserve, the Fed lowers interest rates in line with expectations, and institutional adoption continues at its current pace. In such a scenario, Bitcoin could be accepted as part of the broader financial system.
The bull scenario is exciting
The most optimistic prediction, the “bull scenario,” states that the Bitcoin price could reach $400,000 by 2025. In order for this scenario to happen, the Fed needs to adopt a more dovish policy, institutional Bitcoin adoption needs to accelerate, and one of the major technology companies needs to add Bitcoin to their balance sheets. In addition, the U.S. government’s recognition of Bitcoin as an official reserve asset stands out as one of the most important factors that will support this rise.
Strike CEO Jack Mallers says Trump could declare Bitcoin a reserve asset of the United States via executive order on his first day in office, a development that could be a significant turning point in terms of Bitcoin’s adoption at both a national and institutional level.
Stay tuned