Federal Bitcoin Reserve May Push Bitcoin Price to 1 Million

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December 28, 2024 06:23 EST

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Arslan Butt

Crypto Writer

Arslan Butt

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Arslan Butt is an experienced webinar speaker, market analyst, and content writer specializing in crypto, forex, and commodities. He provides expert insights, trading strategies, and in-depth analysis...

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December 28, 2024 06:23 EST

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Bitcoin Price AnalysisThe idea of Bitcoin reaching $1 million may seem like an ambitious projection, but experts suggest that it hinges on a transformative event: the creation of a U.S. Federal Bitcoin Strategic Reserve.

Jeff Park, Head of Alpha Strategies at Bitwise Asset Management, has put forward this bold claim, estimating the probability of such a reserve being established at less than 10% for 2025.

While the likelihood is slim, the implications of such a move could be monumental for the cryptocurrency market.

The idea of a federal Bitcoin Strategic Reserve happening in 2025 is less than a 10% chance event.

That’s the only math in which Bitcoin can hit $1mm+ in 2025 when it happens.

— Jeff Park (@dgt10011) December 26, 2024

The Role of a Bitcoin Strategic Reserve

A federal Bitcoin reserve would represent a groundbreaking shift in how governments interact with cryptocurrencies. It would involve the U.S. Treasury allocating funds to purchase and hold Bitcoin as a strategic asset.

Park argues that such a reserve is the only scenario in which Bitcoin could reasonably achieve the $1 million price target by 2025.

Here is a simple illustration of how probability math works–

Bottom right looks most probable to me, ie. 2.5% chance. pic.twitter.com/KCsqHGnFMu

— Jeff Park (@dgt10011) December 26, 2024

“The idea of a federal Bitcoin Strategic Reserve happening in 2025 is less than a 10% chance event,” Park stated on X (formerly Twitter). “That’s the only math in which Bitcoin can hit $1mm+ in 2025 when it happens.”

Park’s analysis underscores the potential for governments to influence Bitcoin’s trajectory. As the cryptocurrency market matures, the introduction of a federal reserve could drive institutional adoption, spark unprecedented demand, and create a domino effect across global markets.

Bitcoin Price Outlook: Key Levels and Market Trends

Bitcoin is trading at $94,570, down 1.75% over the past 24 hours, with a trading volume of $40.18 billion. The price remains below the $95,000 mark, facing resistance at $96,850.

A break above this level could target $98,330 and $100,250, while immediate support lies at $92,140 and $90,400.

The RSI at 43 reflects weak momentum, and the 50-day EMA near $96,850 reinforces bearish sentiment. A failure to break resistance may push prices toward $90,000, while a breakout could renew bullish momentum.

Federal Bitcoin Reserve: A Game-Changer?

Speculation about a U.S. Federal Bitcoin Strategic Reserve has intensified. Jeff Park of Bitwise Asset Management estimates a less than 10% chance of its establishment by 2025, but he argues it’s the only realistic path for Bitcoin to reach $1 million.

Legislative and Market Developments

Senator Cynthia Lummis has proposed legislation for the U.S. Treasury to acquire Bitcoin, sparking debate. Proponents see it as a hedge against inflation; critics cite volatility and risks. Market sentiment remains split, with prediction markets assigning a 31% chance of a reserve by 2025.

Bitcoin Outlook

While speculative, a federal Bitcoin reserve could redefine market dynamics, boosting prices through institutional adoption. For now, Bitcoin’s resilience continues to capture global attention, even as its $1 million milestone remains uncertain.

You might also like Bitcoin Price Prediction 2024 – 2034

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Follow us on Google News Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital. Trending News Price PredictionsRecommended Articles

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