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The
possibility of Bitcoin reaching the coveted $1 million milestone hinges
primarily on one crucial factor: the establishment of a U.S. government
strategic Bitcoin reserve. This assessment comes from Jeff Park, Head of Alpha
Strategies at Bitwise Asset Management, who estimates the probability of such
an initiative at less than 10% for 2025.

When Will Bitcoin Hit $1
Million? Park Has the Answer

According
to Park’s latest prediction, there is a possibility that Bitcoin’s price will
hit $1 million in 2025. However, the chances are only around 10%. Why this
specific probability? He assigns the same likelihood to the potential
establishment of a Bitcoin Strategic Reserve in the United States.

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

In a
separate post on X, he demonstrated his analysis of the probability for this
scenario to materialize.

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

Bitcoin Market Dynamics
and Strategic Reserve Impact

The
cryptocurrency market has demonstrated remarkable resilience, with Bitcoin
currently trading at around $96,000. Park’s analysis suggests that a federal
Bitcoin reserve represents the only mathematical pathway for Bitcoin to surpass
the $1 million threshold in 2025.

Legislative Framework

Senator
Cynthia Lummis has already laid the groundwork for such an initiative, introducing
draft legislation that would mandate the US Treasury to acquire 1 billion
Bitcoins over five years. This ambitious proposal has sparked intense debate
within both political and financial circles.

Market Sentiment

While Park
maintains a conservative outlook on the probability of a strategic reserve,
market sentiment appears more optimistic. Polymarket participants currently
price the likelihood of a US Bitcoin reserve at 31% for 2025.

Bitcoin Technical Analysis

On Friday,
December 27, 2024, Bitcoin is trading at $96,252 on Binance, with the price
continuing to move within the same November-December consolidation range. In my
analysis, Bitcoin is currently benefiting from a compelling support zone
defined by:

• An upward
  trendline drawn from the local minimums of mid-November (marked in red)
• The 23.6%
  Fibonacci retracement level measured from August lows to the current ATH,
  currently at $94,500
• A support
  zone marked by December’s local bottoms (marked in green)

We also
can’t overlook the proximity to the psychological level of $90,000, which
provides additional support for the current zone. When traders return from
their Christmas and New Year’s break, cryptocurrency markets should see renewed
volatility, and, in my opinion, we’re likely to see a bounce from the current,
clearly established support level.

What is the current target? First, the psychological $100,000 mark and the current ATH above $108,000.

Institutional Perspectives
for BTC Price

Current Bitcoin Price
Prediction

Without the
strategic reserve catalyst, analysts from major institutions maintain more
modest projections. Bitwise’s baseline forecast suggests Bitcoin could reach
$200,000 by the end of 2025. Standard Chartered and VanEck align with similar
projections, with the latter suggesting a peak of $180,000.

“Following this first peak, we anticipate a 30% retracement in BTC, with altcoins facing sharper declines of up to 60% as the market consolidates during the summer,” VanEck’s Matthew Sigel forecasted. “However, a recovery is likely in the fall, with major tokens regaining momentum and reclaiming previous all-time highs by the end of the year.”

JUST IN: $118 billion VanEck predicts $180,000 #Bitcoin and the U.S. will embrace a Strategic BTC Reserve in 2025 🇺🇸 pic.twitter.com/s7lnNgkyhn

— Bitcoin Magazine (@BitcoinMagazine) December 13, 2024

ETF Impact

The
cryptocurrency market has already witnessed substantial institutional interest,
with spot Bitcoin ETFs attracting over $36 billion in inflows. This trend is
expected to continue, potentially supporting price appreciation even without
government intervention.

Economic and Political
Factors

Trump Administration
Influence

The
incoming Trump administration’s stance on cryptocurrency regulation could
significantly impact Bitcoin’s trajectory. The president-elect has expressed
support for the concept of a strategic Bitcoin reserve, though specific details
remain unclear.

Federal Reserve
Considerations

Market
dynamics could be influenced by the Federal Reserve’s monetary policy
decisions. Recent adjustments to interest rate cut expectations have already
demonstrated their capacity to affect Bitcoin prices.

Market Implications

The
establishment of a US Bitcoin strategic reserve would represent an
unprecedented level of governmental cryptocurrency adoption. Such a move could
trigger a cascading effect, potentially prompting other nations to follow suit
and dramatically accelerating Bitcoin’s price appreciation.

Supply Dynamics

With only
21 million Bitcoins possible and 19.79 million already in circulation, any
significant government purchasing program would create substantial upward price
pressure.

While
Park’s assessment suggests the million-dollar Bitcoin scenario remains a
low-probability event for 2025, the mere possibility has captured the
cryptocurrency community’s attention. The market continues to mature, with
institutional adoption, regulatory developments, and potential government
initiatives shaping its evolution.

You can also check my other cryptocurrency price predictions. Here, I am trying to
answer the question: “Will
Dogecoin reach $1?” Here, I am analyzing XRP
price predictions for 2024 and 2025.

FAQ, Bitcoin Price Prediction
2025

Will Bitcoin reach $1
million?

Multiple
analysts and industry experts suggest Bitcoin could eventually reach the $1
million milestone, though with varying timelines. Cathie Wood maintains this
target could be achieved by 2030, while others tie this possibility to specific
catalysts like the establishment of a U.S. federal Bitcoin reserve. Bitwise’s
Jeff Park suggests this level is achievable in 2025, but only with a 10%
probability linked to government strategic reserve implementation.

Will Bitcoin reach $1
million by 2025?

The
likelihood of Bitcoin reaching $1 million by 2025 appears low, with most
conservative estimates placing Bitcoin between $120,000 and $200,000 by then.
Bernstein analysts recently upgraded their 2025 forecast to $200,000, while
Investing Haven suggests a range of $75,500 to $155,000. The million-dollar
threshold in 2025 would likely require extraordinary catalysts, such as the
proposed federal Bitcoin reserve.

How high will Bitcoin go
in 2030?

Projections
for 2030 vary significantly among analysts. Changelly predicts an average price
of $574,902, while more conservative estimates from Coinpedia suggest $312,767.
Cathie Wood’s Ark Invest maintains one of the most bullish outlooks, projecting
Bitcoin to exceed $1 million by 2030. These forecasts assume continued
institutional adoption and favorable regulatory developments.

How high will Bitcoin hit?

Long-term
projections suggest Bitcoin could reach between $1.4 million and $2.1 million
by 2050, with an average price of $1.77 million. However, near-term
expectations are more modest, with most analysts focusing on the $200,000 level
by 2025. The ultimate price ceiling depends on various factors, including
institutional adoption, regulatory environment, and potential government
involvement in the market.

This article was written by Damian Chmiel at www.financemagnates.com.

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ADA, the cryptocurrency powering blockchain platform
Cardano, is recovering from a recent price decline. Data from
CoinMarketCap shows that the cryptocurrency jumped 3% and 8.6% in the past day
and month, respectively.

At the time of publication, ADA traded at $0.8948, with double-digit growth in trading volumes. In the past 24 hours alone, Cardano’s trading volumes were up 23% to $856 million.

DeFi Activities

Cardano has also experienced extensive activity in the Decentralized Finance (DeFi) space. According to Data from DefiLlama, the blockchain network’s total
value locked is currently at $476 million. ADA dropped to a monthly low of $.0.77 on
December 20, with trading volumes falling to nearly $3 billion.

On the daily chart, Cardano is consolidating, and
prices below these levels could signal more bearish pressure. For nearly a week,
ADA has been in a consolidation, trading between $0.99 and $0.77.

Considering the current state of the market, where most cryptocurrencies are attempting to recover from a correction, ADA could remain a consolidation unless the market sentiment changes. Still, on the daily
chart, the Relative Strength Index (RSI) is at 43, near the oversold zone.

On the weekly chart, ADA price is above the 50 and 200
moving averages amid a steep price correction. RSI is at 63, meaning the price
momentum is generally positive and is not yet at the overbought zone.

Key Price Levels

If ADA fails to hold critical support around $0.75,
its next major test could come near $0.60 and $0.45. The 50 and 200 moving
averages are also important levels at which price could test support. Cardano has mirrored Bitcoin’s movements closely but
shows signs of underperformance.

Amid the market turbulence, Cardano’s founder, Charles Hoskinson, has turned his focus to governance. Criticizing the Swiss-based
Cardano Foundation in a post on social media platform X, Hoskinson said that it lacks community-driven board elections and called for a structural overhaul.

In a Dec. 18 post, Hoskinson urged the Foundation to
relocate to jurisdictions like Abu Dhabi or Wyoming, where governance models
encourage transparency and community participation. He questioned the board’s
accountability and its connection to past controversies, calling for a more
inclusive framework.

As to whether ADA will reach $10 largely depends on market sentiment. The cryptocurrency currently ranks 9th with a market capitalization of more than $31 billion. As one of the leading altcoins, Cardano‘s price has largely been driven by the sentiment around other top altcoins, as well as the price of the leading cryptocurrency, Bitcoin.

This article was written by Jared Kirui at www.financemagnates.com.

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