If you've been keeping an eye on the price of Bitcoin recently, you might've noticed it's on an upward trajectory.
Cryptocurrencies have been soaring since Donald Trump beat Kamala Harris in the November 2024 election, and now he's back in the White House, the President of the United States' tech-first stance is seeing some very rich people get even richer.
Trump gathered his own tech army at the January 20 inauguration, with the heads of Amazon, Apple, and Google gathering alongside Elon Musk as Trump's self-appointed 'First Buddy'.
Bitcoin hit a record high of $108,077 on December 17, 2024, and while it's fluctuated around this mark, it recently dipped below $100,000 and sat at $96,450 on February 5.
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There are continued warnings to be careful about investing in Bitcoin, with experts saying it could hit a theoretical 'red line' by the end of February 2025. At this point, you might be wise to sell.
The very nature of cryptocurrency is volatile, meaning there are a lot of conflicting reports out there.
In contrast to the idea that Bitcoin won’t climb much higher in 2025, the fact that Trump has signed an executive order instructing the Treasury and Commerce departments to create a sovereign wealth fund has led to speculation Bitcoin is about to boom.
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As reported by Forbes, US crypto czar David Sacks held a press conference where he confirmed a task force was currently looking at regulation for stablecoins and market structure, looking ahead at a 'golden age' for crypto.
Although Sacks stopped short of confirming a Bitcoin reserve, he said it's something that's being considered: "That is one of the first things we’re going to look at as part of the internal working group in the administration.
"We’re still waiting for some cabinet secretaries on the working group to be confirmed. But once that’s in place, one of our first steps will be assessing the feasibility of a bitcoin reserve."
In an email to Forbes, Geoff Kendrick, head of crypto research at Standard Chartered Bank, remained optimistic about Bitcoin's future: "For me, the only things that really matter long-term are investor access and bitcoin volatility.
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"Access is improving under the Trump administration. Institutional inflows will continue to gather pace. And volatility will gradually come lower as the quality of flows improves and other infrastructure (e.g. options markets) expand."
Kendrick hopes that Bitcoin will be driven to a jaw-dropping $500,000 before the POTUS leaves office in 2029, and while this seems unlikely to naysayers, it would see Bitcoin hit a market capitalization of $10 trillion.
Even though Nobel Laurette Eugene Fama thinks Bitcoin will be worth nothing in the next decade, Q4 2024 leading to the Bitcoin market cap surging by just under 46% and adding over $1 trillion to close the year at $3.4 trillion means that mythical $10 trillion suddenly doesn't seem that impossible.