Could a Trump Bitcoin Reserve Spark an Unprecedented Cryptocurrency Market Rally?

There are great expectations ahead for Bitcoin in 2025, and the market’s biggest stakeholders are hoping that the return of Donald Trump will be the catalyst for significant growth throughout the year.

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The world’s oldest and most famous cryptocurrency had already climbed above $100,000 for the first time in the wake of Trump’s November 5 election win, but sights have been set far higher for the months that will follow the President-elect’s January 20 inauguration.

Buoyed by promises of deregulation and a ‘strategic Bitcoin reserve’, confidence in the cryptocurrency industry has been growing at an exponential rate. FX Street data suggests that crypto adoption among 18 to 25-year-olds has accelerated an astonishing 683% in the wake of the Presidential election, and all eyes are on how high the price of BTC can go.

So, what will happen to Bitcoin during Trump’s second term in the White House? And could the creation of a reserve push the coin to unprecedented new highs? Let’s take a deeper look into what could become a watershed moment for the cryptocurrency landscape:

Building a Bitcoin Reserve

On the campaign trail last year, Donald Trump promised to keep 100% of all the Bitcoin the US government currently holds or acquires moving forward as part of a ‘strategic national Bitcoin stockpile.’

Trump has likened his plan for a strategic Bitcoin reserve to the US oil reserve and has suggested moving quickly to outpace competition from China or another nation by building a substantial stockpile.

The prospective US adoption of Bitcoin won’t be the first time a nation has strategically turned to cryptocurrency as an investment tool. El Salvador adopted Bitcoin as a reserve asset in 2021 and has since accumulated 6,150 BTC, worth around $600 million at the time of writing.

Although the finer details of Trump’s plan for a stockpile, or whether the plan will ever see the light of day, are less assured, it could follow the blueprint laid out in Republican Senator Cynthia Lummis’ ‘BITCOIN Act’ (Boosting Innovation, Technology and Competitiveness Through Optimized Investment Nationwide).

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“Under the so-called Bitcoin Act, the US must accumulate 1 million bitcoins within 20 years, with the goal of owning roughly 5% of the total supply,” explains Maxim Manturov, head of investment research at Freedom24. “Assuming that a limited supply of the token will drive up the price, accumulating some bitcoin today could allow the U.S. to offset its growing debt problems in the coming years.”

Because the mining of Bitcoin is limited to a maximum supply of 21 BTC that can ever be created, 5% would equate to 1.05 million BTC, pointing to a USD value in excess of $100 billion at today’s valuation.

“Coupled with huge demand from ETF funds, this could create a strong supply-demand imbalance, against this backdrop there are various expectations for the price of BTC from $125k in 2025 to $2.9 million by 2050,” Manturov added.

How High Will Bitcoin Go?

The timing of Trump’s return to the Presidency is crucial because 2024 saw Bitcoin undertake its fourth ‘halving event’, which is a pre-programmed mechanism that occurs approximately every four years and halves the volume of BTC distributed to those using computational power to mine the cryptocurrency.

Halving events automatically double the scarcity of the Bitcoin being created, can has historically led to market rallies that result in new all-time high values.

This has meant that expectations for Bitcoin were already high for the first half of 2025, and the added optimism brought by Trump could compound the adoption of the cryptocurrency.

According to one source, Trump is privately hoping for Bitcoin to reach a value of $150,000 early in his Presidency and views the cryptocurrency as a stock market alternative.

Donald Trump’s son, Eric Trump, is more ambitious for the future price rallies of Bitcoin and claimed in December at Bitcoin Conference MENA that the value of 1 BTC would reach $1 million in the future.

Given the enthusiasm for Bitcoin and the purchasing power of investors despite its capped supply, it’s not unreasonable to believe that Bitcoin could reach $1 million many years in the future, but given the speculative nature of cryptocurrency and the volatility of global markets and geopolitics, we can expect BTC to fall closer to Eric’s father’s prediction in 2025. 

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However, if sentiment could continue to grow, $150,000 may prove to be a little conservative as an estimate.

Concerns Remain

One key issue that the Trump administration will need to counter is widespread lingering uncertainty over the prospects of Bitcoin.

John Plassard, senior investment specialist at Mirabaud Group, has claimed that the future of Bitcoin is both promising and uncertain and cites inflationary pressures, liquidity, the global regulatory outlook, and concerns over Bitcoin as a store of value as key reasons why the cryptocurrency’s growth isn’t yet assured.

Chris Lehmann, DC Bureau chief for The Nation, has argued that the rise of crypto acceptance in the US could bring an acceleration of scams and pump-and-dump schemes that former Securities and Exchange Commission head Gary Gensler aggressively sought to stamp out.

While Gensler’s departure from the SEC was largely welcomed by the cryptocurrency community, we may see the credibility of the crypto landscape struggle with a looser regulatory framework.

Trump’s Transformative Influence

There’s no doubt that the incoming Trump administration will be the biggest influence on the emergence of the cryptocurrency landscape since the launch of Bitcoin back in 2009.

Promises of a Bitcoin reserve and crypto-friendly regulation are helping to build expectations for a landmark year for the cryptocurrency market with many speculative investors assuming that price rallies are assured.

However, the speculative nature of the industry means that uncertainty still lingers, and the credibility of crypto could take a hit from nefarious characters in an open regulatory climate.

Trump will be an influential player in the future of Bitcoin and the wider cryptocurrency landscape, but what it’s going to look like throughout his second term remains less clear.