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Bitcoin and a Strategic Reserve
Meanwhile, bitcoin (BTC) also started 2025 on a positive note. Speculation about other major economies potentially following Trump’s plans for a Strategic Bitcoin Reserve (SBR) drove BTC demand.
Metaplanet CEO Simon Gerovich attended MicroStrategy (MSTR) founder and Chairman Michael Saylor’s New Year’s Eve event. He stated that the BTC community helped elect Trump, supporting expectations Trump will deliver on campaign pledges. He also said that the rest of the world would follow if the US made BTC a strategic reserve asset.
Gerovich named Japan a potential country to follow the US’s lead vis-à-vis approving a Strategic Bitcoin Reserve. Major economies acquiring BTC would significantly tilt the supply-demand balance in BTC’s favor. An SBR would also convert the US government and potentially other governments into BTC Hodlers, mitigating oversupply risk.
Metaplanet (3350) stands to gain significantly if BTC supply wanes. Listed on the Tokyo Stock Exchange, Metaplanet is Japan’s version of MicroStrategy, accumulating BTC using excess cash flow, debt, and equity financing.
Trump’s inauguration speech could be crucial for near-term price trends. Further assurances of including BTC as a strategic reserve asset could drive BTC to new highs.
Bitcoin Price Outlook
On Wednesday, January 1, BTC advanced by 1.06%, following Tuesday’s 0.82% gain to close at $94,373.
Near-term BTC price trends will hinge on US-BTC-spot ETF market flows and US economic data. Upbeat labor market data could reduce expectations of a Q1 2025 Fed rate cut, impacting demand for riskier assets, including BTC-spot ETFs and BTC. A sharp increase in net outflows may drag BTC toward $90,000. Conversely, softer labor market conditions could drive BTC toward $100,000.
As Trump’s inauguration day approaches, SBR-related chatter will also need consideration.