Federal Bitcoin Reserve May Push Bitcoin Price to 1 Million

Bitcoin Cryptocurrency

Ad Disclosure

Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More

Crypto Writer

Arslan Butt

Crypto Writer

Arslan Butt

Part of the Team Since

Sep 2022

About Author

Arslan Butt is an experienced webinar speaker, market analyst, and content writer specializing in crypto, forex, and commodities. He provides expert insights, trading strategies, and in-depth analysis...

Has Also Written

• Bitcoin Price Prediction: $800M Short Squeeze Resets Market as BTC Holds $95K
• Bitcoin Price Prediction: $96,600 Hold Puts $100K Back in Focus
• Bitcoin Price Prediction: CPI Surprise Sends BTC Flying – Is Wall Street About to Go All-In Again?
• Bitcoin Price Prediction: Trump vs the Fed Just Escalated – Is BTC About to Explode as Trust in the Dollar Crumbles?
• Bitcoin Price Prediction: BTC Holds $92K as Strategy’s $1.25B Buy Offsets Fund Outflows

Author Profile

Share

Copied

Ad Disclosure

Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More

Last updated: 

December 28, 2024

The idea of Bitcoin reaching $1 million may seem like an ambitious projection, but experts suggest that it hinges on a transformative event: the creation of a U.S. Federal Bitcoin Strategic Reserve.

Jeff Park, Head of Alpha Strategies at Bitwise Asset Management, has put forward this bold claim, estimating the probability of such a reserve being established at less than 10% for 2025.

While the likelihood is slim, the implications of such a move could be monumental for the cryptocurrency market.

The Role of a Bitcoin Strategic Reserve

A federal Bitcoin reserve would represent a groundbreaking shift in how governments interact with cryptocurrencies. It would involve the U.S. Treasury allocating funds to purchase and hold Bitcoin as a strategic asset.

Park argues that such a reserve is the only scenario in which Bitcoin could reasonably achieve the $1 million price target by 2025.

“The idea of a federal Bitcoin Strategic Reserve happening in 2025 is less than a 10% chance event,” Park stated on X (formerly Twitter). “That’s the only math in which Bitcoin can hit $1mm+ in 2025 when it happens.”

Park’s analysis underscores the potential for governments to influence Bitcoin’s trajectory. As the cryptocurrency market matures, the introduction of a federal reserve could drive institutional adoption, spark unprecedented demand, and create a domino effect across global markets.

Bitcoin Price Outlook: Key Levels and Market Trends

Bitcoin is trading at $94,570, down 1.75% over the past 24 hours, with a trading volume of $40.18 billion. The price remains below the $95,000 mark, facing resistance at $96,850.

A break above this level could target $98,330 and $100,250, while immediate support lies at $92,140 and $90,400.

The RSI at 43 reflects weak momentum, and the 50-day EMA near $96,850 reinforces bearish sentiment. A failure to break resistance may push prices toward $90,000, while a breakout could renew bullish momentum.

Federal Bitcoin Reserve: A Game-Changer?

Speculation about a U.S. Federal Bitcoin Strategic Reserve has intensified. Jeff Park of Bitwise Asset Management estimates a less than 10% chance of its establishment by 2025, but he argues it’s the only realistic path for Bitcoin to reach $1 million.

Legislative and Market Developments

Senator Cynthia Lummis has proposed legislation for the U.S. Treasury to acquire Bitcoin, sparking debate. Proponents see it as a hedge against inflation; critics cite volatility and risks. Market sentiment remains split, with prediction markets assigning a 31% chance of a reserve by 2025.

Bitcoin Outlook

While speculative, a federal Bitcoin reserve could redefine market dynamics, boosting prices through institutional adoption. For now, Bitcoin’s resilience continues to capture global attention, even as its $1 million milestone remains uncertain.

$BEST Wallet: Web3 Simplified, $5.9M Raised in Presale

While Bitcoin’s price has remained relatively stable, there’s an emerging opportunity that has captured the attention of investors.

Best Wallet is a revolutionary Web3 platform supporting thousands of cryptocurrencies across 50+ major blockchains, including Bitcoin and Ethereum.

Users can securely manage their assets to buy, sell, and swap both same-chain and cross-chain without requiring KYC verification.

The $BEST token presale has now raised an impressive $5.9 million, priced at $0.023375.

Early investors gain access to exclusive rewards and upcoming project launches.

Why Consider Investing in $BEST?

• Utility-Driven: Tailored for seamless use in DeFi applications, staking, and token claims.
• Early Advantage: Gain presale perks and participate in exclusive project launches.
• Expanding Ecosystem: A rapidly growing community and partnerships with trending platforms like Pepe Unchained.

The project’s active engagement on Twitter and Telegram reflects the strong interest from its community. With robust features and an ever-growing ecosystem, $BEST Wallet continues to distinguish itself as a leader in the Web3 landscape.