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The recent buzz around Bitcoin’s rising price has stirred talks of it potentially becoming a strategic reserve asset for the U.S., much like gold. Former President Donald Trump recently hinted at the idea, suggesting that the U.S. might hold and expand its Bitcoin reserves as part of a “Strategic National Bitcoin Stockpile.” The concept is catching on as more people start seeing Bitcoin as a safe investment.
Though still just an idea, many are curious about what a government-held Bitcoin stash could mean. Similar to the U.S. Strategic Petroleum Reserve, a Bitcoin reserve would act as a financial safety net, potentially stabilizing the economy during inflation or market chaos.
Supporters argue that Bitcoin’s limited supply and independence from traditional financial systems make it an ideal inflation hedge, much like gold. In a recent video analysis, an Altcoin Daily analyst revealed the key factors pushing Bitcoin up.
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Why Bitcoin Demand Could SkyrocketIf the U.S. government starts holding Bitcoin in large amounts, it could create a major increase in demand. This could drive prices higher by reducing the number of Bitcoins available on the market.
Moreover, Senator Cynthia Lummis’s Bitcoin Act proposes that the U.S. government build a strategic reserve by acquiring up to 1 million Bitcoins over the next five years. In line with this trend, BlackRock’s Bitcoin ETF recently surpassed its gold ETF in popularity, showing that big investors are increasingly treating Bitcoin like digital gold.
The most important factor which suppressed Bitcoin for so long is unfair regulations. SEC’s overreach has crippled the entire crypto industry. With Trump’s victory, regulation in the U.S. is showing signs of a shift.
Recent court cases, such as Grayscale’s case against the SEC, hint that crypto regulations might soon be fairer and more transparent. Meanwhile, political support for crypto is growing in Congress, where pro-crypto voices have more influence than ever, potentially paving the way for favorable legislation.
Crypto ReactionCoinbase CEO Brian Armstrong shared his optimism that the current pro-crypto Congress could provide the regulatory clarity that the U.S. crypto industry has long awaited. With over 200 pro-crypto candidates elected, the pathway to supportive regulation appears closer, which could unlock the true “price discovery” phase for Bitcoin as it integrates further into the financial mainstream.
Bitcoin’s Rise: More Than Just Market HypeBitcoin’s recent price surge appears to be more than just market excitement—it’s also a response to these political and regulatory shifts. If Bitcoin gains recognition as a reserve asset, it could represent a transformative moment, establishing digital assets as a serious part of national economic planning by 2025.