As the U.S. prepares for the January 20th inauguration of its 47th President, Donald Trump, the cryptocurrency market is seeing growing optimism. The industry ended 2024 on a high note, driven by the record-breaking performance of the spot Bitcoin ETF, which has set the stage for a promising year ahead.
The stage is set for a potential revolution in the market. Read on to know more about these developments.
Growing Institutional and Nation-State Interest
There’s increasing speculation about a potential Bitcoin rally in the near future. This has caught the attention of institutional investors and nation-states, following in the footsteps of leaders like MicroStrategy Inc. (NASDAQ: MSTR) and El Salvador.
Trump recently hinted that his administration plans to do something significant for the crypto industry, sparking more interest. Several U.S. states are now considering adopting strategic Bitcoin reserves. According to Dennis Porter, CEO of the Satoshi Action Fund (SAC), at least 13 states are working on laws to create these reserves.
“January is going to be a record-breaking month for Bitcoin policy,” Porter noted.
Support from Experts
Porter’s comments match predictions from other industry leaders. Ryan Rasmussen, Head of Research at Bitwise, and Franklin Templeton both predict that more nations will add Bitcoin to their reserves in 2025. Franklin Templeton expects the U.S. to become a crypto hub, attracting more countries to follow suit.
Rasmussen believes the number of countries holding Bitcoin as a strategic reserve could double by next year.
Supply Shock for Bitcoin Price?
This surge in Bitcoin adoption by nation-states will only heighten the ongoing supply-demand imbalance. Despite price consolidation, the amount of Bitcoin on centralized exchanges continues to shrink, now hovering around 2.21 million BTC.
With the U.S. expected to purchase around 1 million Bitcoin over the next five years, analysts believe the price of Bitcoin could easily surpass $1 million per unit.
The race for global Bitcoin dominance has only just begun.
Source: https://coinpedia.org/news/bitcoin-adoption-accelerates-13-u-s-states-push-for-strategic-reserves/