According to the latest statistics from Watcher.Guru, following Trump's victory in the 2024 presidential election, the cryptocurrency market saw over $200 billion in new funds on Wednesday, November 7. Noted financial market writer Yashu Gola anticipates that Trump's three key policies will drive Bitcoin's price to surpass $100,000 in 2025.
After Trump defeated Democratic opponent Kamala Harris in the U.S. presidential election, Bitcoin reached a new high of approximately $76,400.
The booming development of cryptocurrency is attributed to Trump's remarks, in which he vowed to make the United States the world capital of cryptocurrency. He promised to implement crypto-friendly policies, which are in stark contrast to the current Biden administration's tough stance on the crypto industry.
At least three policies from Trump could drive Bitcoin's price to surpass $100,000 in 2025:
Incorporate Bitcoin into the U.S. Treasury
Shortly after Trump won his second presidential term, his close aide, Senator Cynthia Lummis, proposed establishing a strategic Bitcoin reserve for the United States.
"We will establish a strategic Bitcoin reserve," she wrote.
The newly elected Trump-Vance government may issue an executive order directing the U.S. Treasury to allocate special funds for purchasing Bitcoin, viewing it as a strategic asset. This is similar to the strategic petroleum reserve management under Biden, who approved the release of 180 million barrels of oil in 2022 to curb rising fuel prices.
If the U.S. government views Bitcoin as a strategic asset and actively hoards it, this will strongly demonstrate Bitcoin's value storage function akin to gold. This move may encourage other countries, as well as global institutions and retail investors, to consider similar reserves, further tightening supply and pushing Bitcoin's price to $100,000 in 2025.
Dismiss the SEC Chairman
Under the leadership of SEC Chairman Gary Gensler, the agency has taken a strict regulatory approach to cryptocurrency, focusing on the enforcement of securities laws in the crypto market.
In recent years, Gensler's crackdown has angered the cryptocurrency industry, as reflected in Trump's speech at the Bitcoin 2024 conference in July. Trump promised to replace him with a more crypto-friendly figure "on the first day of taking office," which could create a more favorable regulatory environment for cryptocurrency businesses and investors.
Changes in SEC leadership may lead to less stringent enforcement actions, faster approval of Bitcoin spot ETFs, and clearer guidelines for participants in the cryptocurrency market. The current regulatory uncertainty felt by cryptocurrency market participants may decrease, encouraging more capital to flow into Bitcoin and related assets.
Cryptocurrency mining policy
The Trump administration may encourage or regulate cryptocurrency mining activities, focusing on making the U.S. a global leader in this field. This may involve incentives such as tax breaks for mining operations or more favorable regulations, provided the mining meets environmental standards.
If miners benefit from tax incentives, lower energy costs, or other regulatory advantages, their operating expenses will decrease. This can reduce the urgent need to sell mined Bitcoin to cover costs.
In turn, miners can hold Bitcoin for a longer time, thereby reducing market selling pressure and leading to Bitcoin's price rising to $100,000 or more by 2025.
