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- Bitcoin Reaches $106,000 Amid Trump’s Bitcoin Reserve Proposal.
- The Federal Reserve’s rate cut could boost demand for Bitcoin.
Newly elected President Donald Trump’s proposal to create an American strategic Bitcoin [BTC] reserve has caused a stir in the cryptocurrency market.
With this proposal, Trump has caught the attention of investors, fueling optimism about Bitcoin’s future.
On December 15, Bitcoin reached a new milestone, passing $106,000 and peaking at $106,488 before stabilizing at $104,518.
The significant price increase follows increasing investor interest, driven by the possibility that Bitcoin could soon become part of the US national reserves.
The impact of Trump’s Bitcoin proposal
Financial analysts are closely monitoring Bitcoin’s potential for further growth, especially in light of Trump’s proposal.
Experts predict that Bitcoin could reach $150,000 by the end of 2025, driven by a combination of institutional adoption and favorable regulatory changes.
Martin Leinweber from MarketVector Indices highlighted historical trends, including post-presidential election rallies and Bitcoin halvings, that reduce mining rewards and could lead to a supply-driven price increase.
Caution is warranted, however, as experts like Tom Lee of Fundstrat Global Advisors acknowledge that Bitcoin’s path could involve volatility, with short-term declines possible before substantial gains are realized.
World Liberty Financial expands reach in the market
In addition to his Bitcoin reserve proposal, Trump’s crypto-backed project, World Liberty, is making notable progress in the market.
Recently, the project has undergone significant implementation transactionwhere 250,000 USDC is exchanged for the ONDO token, which is linked to Ondo Finance.
This move is part of World Liberty’s broader strategy to grow its presence within the cryptocurrency ecosystem.
In addition to this large transaction, World Liberty has executed several smaller transactions involving USDT and ETH, demonstrating active participation in the market.
Global economic shift
If the US makes progress in adopting Bitcoin as a reserve asset, it could have a profound impact on global economic policy.
The integration of Bitcoin into national reserves could set a precedent for other countries to follow, leading to wider adoption and recognition of cryptocurrencies in the global financial system.
This shift could impact international trade, currency valuations and the traditional financial ecosystem, positioning Bitcoin as a more stable and widely accepted asset.
As Bitcoin transitions from a speculative investment to a reserve-backed asset, its role in the global economy would likely be strengthened.
