The global race for Bitcoin has begun: the latest price forecasts

Latest forecasts: Anthony Pompliano, asset manager and investor, stated that the race to accumulate Bitcoin among nations and governments has already begun. United States, Bhutan, and El Salvador are among the main players involved.

Let’s see all the details in this article.

Governments and nations are rushing to accumulate Bitcoin, according to the latest forecasts 

The global race to accumulate Bitcoin is no longer a remote hypothesis. According to Anthony Pompliano, a well-known investor and supporter of Bitcoin, the movement is already underway, involving governments and institutions from different nations. 

During an interview on Yahoo Finance, Pompliano discussed the growing interest of sovereign nations in adopting Bitcoin as a strategic reserve to protect against currency devaluation and ensure a long-term economic advantage.

Pompliano highlighted how the concern about inflation and the loss of purchasing power is pushing several nations to seriously consider investing in Bitcoin.

In the last five years, the purchasing power of American citizens has decreased by 25%, an alarming figure that has pushed governments to explore alternative strategies. 

Among these, accumulating Bitcoin is proving to be a clever move to avoid being overtaken by other economic powers.

Pompliano clarified that the idea of creating a strategic reserve of Bitcoin, as discussed by president-elect Trump, is not only theoretical but a concrete opportunity for the United States.

This strategy is not comparable to the accumulation of gold. As Pompliano stated, “This is not like gold where we can simply go and dig more of it from the ground.” 

Bitcoin, with its limited supply, represents an asset that requires completely new approaches to be managed and acquired, and its scarcity is seen as a fundamental advantage.

The integration of Bitcoin in Bhutan, El Salvador, Florida, and Pennsylvania 

In any case, the competition is not limited to the United States. Two relevant examples are Bhutan and El Salvador, which have already started building their Bitcoin reserves. 

According to Pompliano, these countries have a significant advantage. That is, as smaller players, they do not face the same economic risks as the global powers. 

However, the risk for the United States of falling behind is considerable, although the potential downside of investing in Bitcoin remains relatively contained for a nation with such a vast economy. 

To give an idea, Pompliano illustrated that the increase in the American national debt of 850 billion dollars in the last 90 days represents a significant investment opportunity. 

If that amount were converted into Bitcoin, it could correspond to about half of the current market capitalization of the cryptocurrency. Thus demonstrating how the figures are significant but not insurmountable for the U.S. government.

Even at the state level, in the United States, initiatives are being taken to integrate Bitcoin into public finances. The Chief Financial Officer of Florida, Jimmy Patronis, has proposed that the state pension fund allocate part of its investments to Bitcoin. 

In November 2024, the legislators of Pennsylvania presented a bill to allow the State Treasury to hold 10% of its assets in Bitcoin, consolidating the interest in this cryptocurrency as a strategic resource.

New addresses and change of balances 

The adoption of Bitcoin, however, is not limited to institutions. One of the most significant indicators for assessing investor interest is the number of new Bitcoin addresses created. 

Historically, the peaks in the creation of new addresses have often coincided with the beginning of a bull phase in the market, fueled by the interest of retail investors. 

However, in recent months, despite a modest increase, the numbers remain below the record levels of the past. 

This suggests that the general enthusiasm has not yet reached the peaks observed in 2021 and 2017, even though there is renewed curiosity. Google Trends also confirms this situation: searches for “Bitcoin” are on the rise but far from historical levels.

Another interesting element is the change in the balance among Bitcoin holders. We are indeed witnessing a slight transition. 

Long-term holders are starting to sell in small quantities, allowing new participants to enter the market. 

However, the overall volumes of Bitcoin in motion remain low, indicating that many experienced investors still prefer to maintain their reserves. 

During the bull run of 2020-2021, the market was characterized by large transfers from long-term holders to new investors, which pushed prices to the sky. 

Currently, this dynamic is less evident, suggesting a lasting confidence in the fundamentals of Bitcoin. A crucial aspect of the current Bitcoin price increase is its spot-driven nature. 

Unlike previous market phases driven by high-leverage positions, the current growth is supported by real purchases without excessive exposure to the risk of forced liquidations. 

The open interest in the derivatives markets has increased only slightly, indicating a lower reliance on leveraged speculation compared to the past.

Positive indicators for Bitcoin forecasts 

Finally, while retail investors are showing caution, the whale, the large holders of Bitcoin with over 100 BTC, are accumulating at impressive rates. 

This signal of confidence from experienced investors is considered a positive indicator for the market, suggesting that a significant upside potential is expected. 

In the past bull cycles, the whales sold near the highs. However, this time it seems they are holding their positions, thus increasing hopes for a future bull market.

The race for Bitcoin is just beginning, and the future remains full of opportunities and challenges. However, with nations and institutional investors preparing to integrate it into their balance sheets, the cryptocurrency landscape could be destined for a historic transformation.