'Uncle Sam wants millions in Bitcoin': Bitcoin touches $99,099 again
Bull run set? Crypto guru predicts US will buy a 'massive amount' of the top crypto
Get ready for a Bitcoin price rally.
A top financial advisor predicts the US government is about to buy a tonne of Bitcoin, potentially triggering a huge price surge.
Its a bold prediction
Nigel Green, CEO of deVere Group, one of the world’s largest independent financial advisory and asset management organisations, is boldly predicting that 2025 will see the US acquiring between 300,000 and 400,000 Bitcoins as part of a “Strategic Bitcoin Reserve”.
Bitcoin bull run?
This move, he says, would not only reinforce the dollar’s dominance but also catalyse a historic Bitcoin bull run.
Green, renowned for his accurate Bitcoin forecasts — including its recent surge to $100,000 — says the establishment of a Strategic Bitcoin Reserve is “almost inevitable.”
In a statement to Gulf News, he said: “The US will likely cement Bitcoin as a cornerstone of its financial strategy, and this monumental decision will push Bitcoin’s value to unprecedented levels.”
Highlights
This could signal a new era for cryptocurrency adoption. Here are the highlights:
US Considering Strategic Bitcoin Reserve: Nigel Green, CEO of deVere Group, anticipates the US buying 300,000 to 400,000 Bitcoins to establish a Strategic Bitcoin Reserve.
Potential Bull Run: Green believes this move would solidify the dollar's dominance and propel Bitcoin's value to new heights.
Echoes of Bitcoin Act: This prediction follows Senator Cynthia Lummis' proposal for the Bitcoin Act of 2024, aiming to acquire one million Bitcoins over five years.
Also Read: Why Bitcoin sank below $100,000
Political backing and market momentum
Green acknowledges potential political hurdles in reaching the one million target. He expects, however, a “substantial reserve” to be built due to strong retail and institutional investor interest.
Masterstroke
He views this as a “strategic masterstroke”, strengthening the US's position in the digital economy.
He predicts that, with US president-elect Donald Trump in charge, bipartisan support for the potential benefits of Bitcoin and a strategic reserve is likely to grow.
New era for cryptocurrencies?
The potential US embrace of Bitcoin signifies a likelihood of a shift towards a more crypto-friendly regulatory environment.
This, coupled with favourable tax policies, could fuel broader cryptocurrency adoption and integration into mainstream finance.
“Overall, the prospect of a US Bitcoin reserve, along with positive market signals, suggests a potentially transformative era for cryptocurrencies,” Green stated.
Factors to watch
A number of factors combined to drive Bitcoin's price from approximately $42,582 in January 2024 to over $93,000 by December 2024, marking a substantial increase of around 121 per cent over the year, as per Reuters.
Several key factors contributed to this remarkable increase:
Approval of Spot Bitcoin ETFs: The US Securities and Exchange Commission (SEC) approved spot exchange-traded funds (ETFs), making Bitcoin more accessible to institutional and retail investors. This approval led to substantial daily demand, with ETF inflows approaching $2 billion in just three days, as reported by MarketPulse.
Institutional adoption: Major financial institutions, including BlackRock and Fidelity, launched Bitcoin-related products following the ETF approval. This institutional interest provided legitimacy and attracted significant capital inflows into the cryptocurrency market.
Regulatory environment: The return of a pro-crypto administration in the US fostered optimism about favourable regulatory changes, further boosting investor confidence in Bitcoin's future prospects.
Derivatives market growth: The evolution of a robust, regulated derivatives market, including Bitcoin futures and options, enabled better price discovery and risk management. This development attracted a broader range of investors, contributing to increased trading volumes and price appreciation, according to the CME Group.
Market sentiment and FOMO: The fear of missing out (FOMO) among investors, driven by Bitcoin's increasing accessibility and mainstream acceptance, contributed to the price surge. As more investors sought to capitalise on potential gains, demand increased, pushing prices higher.
[This is for informational purposes only and should not be interpreted as financial advice. Cryptocurrencies are highly volatile and subject to significant risks, including market fluctuations and loss of principal. Consult with a qualified professional before making any investment decisions.]
