Bitcoin broke through the $100,000 mark, a significant milestone, but pundits now expect prices to soar as high as $5 million, leading to a 100-trillion-dollar market. The cryptocurrency’s current valuation is $500 to $600 billion, and with total circulation capped at 21 million, BTC would have to trade at around $4.7 million to meet the far-fetched 100 trillion prediction. Integral to the soaring prices and predicted valuation is the incoming Trump administration.
Trump has made it clear one of his day-one executive orders will involve pro-crypto policies that will impact Bitcoin and the entire cryptocurrency market. Details of the nature of such policies remain speculative. However, a recent leak of Trump’s game-changer has seen BTC prices soar in recent weeks, with the 100 trillion predictions becoming a daily debate among pundits. BTC prices currently hover around $100,000.
Bitcoin’s Rise to Mainstream Adoption
Introduced in 2009, Bitcoin’s journey has been riddled with skepticism, regulatory hitches, and significant milestones that have seen the cryptocurrency rise from $20 per coin to over $100,000 in recent times. The crypto is widely accepted and even recognized as a legal tender in some countries. This feat was unimaginable just a few years ago when BTC and other cryptocurrencies were sidelined as fleeting innovations. Real money betting sites and sweeps coins casinos were among the first to adopt cryptocurrencies, allowing punters to use them for deposits, wagering, and withdrawals when enjoying slots, blackjack, roulette, poker, and other products. These sites also featured exclusive welcome and deposit bonuses for crypto deposits, providing incentives for players to use Bitcoin, Ethereum, Litecoin, and other cryptos.
Although crypto is still big in the gaming industry, its adoption has evolved tremendously, with leading stores like Amazon, Microsoft, and Apple, all accepting crypto payments. In fact, Bitcoin and other cryptocurrencies have become more like fiat, being used to buy products and services online. Banks also provide crypto trades and investments, with the SEC even approving spot Bitcoin ETFs in 2024. Various countries are also tinkering with regulations to accommodate cryptocurrencies. However, crypto has faced its regulatory hitches, including the controversial accounting policy that required banks holding BTC and other cryptos to count them as liabilities on the balance sheet. However, that’s about to change when Trump resumes office.
Trump’s Game-Changer Leak and Its Significance
A recent rumor suggests that Donald Trump, former and incoming U.S. President, is planning to lay down executive orders that will instantly impact the crypto market. The leak suggests that Trump will advocate for crypto-friendly regulations and policies that will boost institutional and retail adoption. Other rumors claim the president may support the digital dollar integration, which accommodates a blockchain-powered digital dollar. If this is true, Bitcoin and other cryptocurrencies will likely gain mainstream acceptance, which is integral to its predicted 100 trillion valuation. The rumors also suggest a renewed focus on innovating financial technologies with Bitcoin and cryptocurrencies as foundational pillars of future economic moves.
Among the anticipated executive orders is the repeal of SEC’s SAB121, also known as the Staff Accounting Bulletin 121. The March 2022 bulletin required banks to count Bitcoin and cryptos as liabilities and its repeal is the only remaining catalyst pundits expect to trigger a major rally in BTC prices to $5 million. The other catalysts included introducing spot exchange-traded funds and fair value accounting. Both were achieved in 2024, with the SEC approving Bitcoin ETFs early in the year and the FASB adopting fair value accounting for Bitcoin in November. These moves have introduced Bitcoin to more investors and allowed companies to reflect BTC’s market value more accurately in their financial statements.
Analyzing the Road to a 100 Trillion Valuation
Bitcoin’s total market capitalization sits at around half a billion dollars, which is a long way from the predicted $100 trillion. If the crypto is to achieve such an ambitious valuation, many things must go right, including soaring BTC prices, mass adoption, and favorable regulations and innovations. Bitcoin’s price just hit $100,000 in the last few months and pundits anticipate a $250,000 price within the next couple of years. The crypto’s maximum circulation is 21 million, so achieving a $100 trillion valuation requires BTC prices to hit $4.7 million per coin. Achieving such a valuation also requires widespread global adoption for a massive influx of capital.
Bitcoin must first be globally recognized as a store of value like gold and institutions, governments, and sovereign wealth funds must be encouraged to invest. With Trump’s incoming administration, potential policies, such as tax benefits for investors and regulatory clarity, may attract more people to buy in. Trump is also an advocate for economic growth and innovation and pushing for Blockchain technology leadership may just legitimize the cryptocurrency as a critical asset. However, the road to $100 trillion faces many challenges, including SEC scrutiny, global skepticism, and other regulatory hurdles. Market volatility and competition from other cryptocurrencies are also huge concerns.
Key Takeaways and the Future of Bitcoin
Bitcoin is a long way from hitting a 10 trillion valuation let alone 100 trillion. It would take unprecedented evolution and massive adoption for prices to scale from $100,000 to $5 million. Despite Trump’s favorable policies, what his four-year term achieves could be undone if the new administration takes a different approach. Notwithstanding, Bitcoin’s prices are expected to rise in the coming years as cryptocurrencies become more mainstream.
