Trump's Bitcoin Reserve Plan May Boost Prices 15% by Summer 2025

K33 Research has highlighted that the summer of 2025 could be a pivotal period for the cryptocurrency market, particularly for Bitcoin. This optimism is driven by several policy initiatives promoted by former U.S. President Trump, which are expected to significantly impact the market dynamics. Trump's executive orders, aimed at establishing a strategic Bitcoin reserve and a digital asset reserve, are designed to position the U.S. as a global leader in cryptocurrency. The strategic reserve, primarily composed of Bitcoin seized by the Treasury Department, is intended to be held as a national reserve asset for the long term rather than being sold.

Despite the initial market response being relatively subdued, with Bitcoin prices fluctuating between $77,000 and $87,000 in April, analysts at K33 Research believe that these policies could drive institutional investor participation in the long run. This increased participation is expected to create a "flywheel effect," accelerating industry growth. As a result, K33 Research advises investors to hold onto their Bitcoin and observe the market in May, rather than following the traditional "sell in May and go away" strategy. This advice is based on the expectation that the policy effects will gradually manifest over time, potentially leading to a more bullish outlook for Bitcoin.

K33 Research Director Vetle Lunde and Senior Analyst David Zimmerman emphasized in a report released on Tuesday that while summer typically sees fewer catalysts compared to other times of the year, the summer of 2025 is expected to be different. They noted that President Trump's initiatives will drive several bullish factors for cryptocurrency, particularly Bitcoin. In contrast, the stock market may face challenges due to tariff tests, which could further enhance Bitcoin's relative strength in the coming months. This analysis suggests that the summer of 2025 could be a period of significant growth and opportunity for Bitcoin investors, driven by favorable policy changes and increased institutional interest.