3 Trump Policies That Will Boost Bitcoin Price Above $100,000 in 2025

Bitcoin (BTC) established a new record high of around $76,480 after Donald Trump’s victory over his Democratic rival, Kamala Harris, in the United States presidential election.

The cryptocurrency has boomed due to Trump’s rhetoric of making the US the world’s crypto capital. The president-elect has promised to introduce crypto-friendly policies, a step away from the Joe Biden administration’s hardliner approach toward the sector.

At least three Trump policies could trigger Bitcoin’s price toward and above the $100,000 mark in 2025.

Adding Bitcoin to the US Treasury

Shortly after Trump won the second presidential term, his close aide, Senator Cynthia Lummis, proposed establishing a strategic Bitcoin reserve for the US.

WE ARE GOING TO BUILD A STRATEGIC BITCOIN RESERVE 🇺🇸 🇺🇸 🇺🇸

— Senator Cynthia Lummis (@SenLummis) November 6, 2024

A potential executive order from the newly elected Trump-Vance administration could direct the US Treasury to allocate specific funds for acquiring Bitcoin, treating it as a strategic asset. That is similar to the management of the Strategic Petroleum Reserve under Joe Biden, who authorized the release of 180 million barrels of oil in 2022 to curb rising fuel prices.

The US government treating Bitcoin as a strategic asset and actively accumulating it would signify strong validation for Bitcoin’s role as a store of value, akin to gold. The move would likely encourage other countries—and global institutional and retail investors—to consider similar reserves, further tightening supply and driving prices toward $100,000 in 2025.

Firing Crypto Villain Gary Gensler

Gary Gensler’s leadership at the US Securities and Exchange Commission has been marked by a tough regulatory approach toward cryptocurrencies, focusing on enforcing securities laws in crypto markets.

His crackdown has irked the crypto sector in recent years, as reflected in Trump’s speech at the Bitcoin 2024 Conference in July. The president-elect pledged to replace him on “Day One” with a more crypto-friendly figure, which could create a more favorable regulatory climate for crypto businesses and investors.

🚨BREAKING: GARY GENSLER UNDER INVESTIGATION HOURS AFTER DONALD J. TRUMP ELECTED PRESIDENT. #XRP pic.twitter.com/ohHQhA9Oqk

— CryptoGeek (@CryptoGeekNews) November 6, 2024

A change in leadership at the SEC could lead to less stringent enforcement actions, faster approval of Bitcoin ETFs, and clearer guidelines for crypto market participants. The regulatory uncertainty currently perceived by crypto market participants might diminish, encouraging greater capital inflows into Bitcoin and related assets.

Policies on Crypto Mining

Trump’s administration could potentially encourage or regulate crypto mining activities, focusing on making the US a global leader in this sector. This might involve incentives such as tax breaks for mining operations or more favorable regulation, provided mining adheres to environmental standards.

If miners benefit from tax incentives, lower energy costs, or other regulatory advantages, their operating expenses would decrease. That can reduce the immediate need to sell mined Bitcoin to cover costs.

In turn, miners could hold onto their Bitcoin for longer, decreasing sell pressure in the market and leading to Bitcoin’s price gains toward or above $100,000 in 2025.