Bitcoin Is Soaring

A new record is in the pipeline for bitcoin. Good news from the US side is piling up and even better news is coming very soon.

The summer will be hot

Bitcoin is at the doorstep of its previous record, around $108,000, energized by institutions queuing up, convinced that the asset offers a much better potential today than ten years ago.

The reason is JP Morgan’s CEO who will finally allow his 90 million clients to buy bitcoins. This is a strong signal considering that Jamie Dimon recently considered it a “fraud”.

The tide has turned for bitcoin since Donald Trump was elected. American banks are now strongly encouraged not to put obstacles in its way.

Movements at the ETF level confirm that institutions are at work. Nearly 3 billion dollars were invested there in May. ETFs have absorbed 43 billion since their launch in January 2024. They hold a total of 122 billion dollars.

More than 200 multinationals have already made bitcoin their treasury asset. Strategy holds 576,000 BTC, Tether (100,000), Marathon (48,000), XXI (31,000), Riot (10,000), Tesla (11,500), Metaplanet (7,800), Space X (8,250), etc.

If we add states like the United States (198,012 BTC) and China (190,000 BTC), the grand total is 1.61 million bitcoins, or 171 billion dollars.

Facing this institutional wave, Scott Melker, known as the “Wolf of Wall Street,” predicts $250,000 by the end of the year.

Yahoo Finance expects bitcoin to reach a market capitalization of 20 trillion dollars by 2030. It is 2,000 billion currently. One bitcoin will then be worth nearly one million dollars.

The U.S. government at work

This is no longer a secret or a pipe dream. The United States will accumulate more bitcoins. Concrete announcements are expected in July. In this regard, keep a close eye on the Bitcoin conference that will take place in Vegas from May 27 to 29. Attendees will include Vice President JD Vance, as well as David Sacks and Bo Hines, the two key figures in charge of the Bitcoin file at the White House.

Meanwhile, note that Senator Cynthia Lummis just got the SENATE to pass the GENIUS bill. The Guiding and Establishing National Innovation for U.S. Stablecoins Act, a law establishing an accommodating regulatory framework for stablecoins. The Senate passed it on Monday, May 19 with a bipartisan result (66-32):

This law is presented as support for the dollar’s status as an international reserve currency. The reason being that stablecoin issuers like Tether will have to maintain 100% reserves in dollars or in Treasury bonds (U.S. public debt).

The bank Citigroup sees stablecoins weighing $1.6 trillion by 2030, compared to $240 billion currently. For Citi, such a market capitalization alone could push bitcoin above $285,000.

This is suggested by the historical correlation between the two assets. Stablecoins are indeed used to defer capital gains tax. Selling bitcoins for stablecoins is not a taxable event.

Bitcoin, the gold of the 21st century

Many countries are reluctant to place their reserves in U.S. debt, notably the Sino-Russian duo. Their central banks instead buy large amounts of gold. Beijing and Moscow each hold a bit more than 2,000 tons (215 billion $).

And soon bitcoins? The Russian Central Bank acknowledged on Wednesday, May 21, that bitcoin is the best performing asset of the past year, with a 38% return. This statement is noteworthy as it is accumulating bitcoins to settle international payments.

Vladimir Putin recently expressed favorable opinions. He declared at the “Russia Calling” Investment Forum that Bitcoin is “impossible to ban” due to its decentralized nature. “Who can ban bitcoin? Nobody”, he said. It is hard to imagine Russia (and China) standing idle if the United States starts selling its gold to accumulate bitcoins.

Currently, bitcoin’s market capitalization stands at $2 trillion. It is on the same scale as tech giants like Google, Tesla, or Apple, which range between $1.5 trillion and $3 trillion. But bitcoin can go much higher.

In a recent interview with Bloomberg, billionaire Anthony Scaramucci said that “$22 trillion logically becomes the target if bitcoin is truly digital gold.” “This represents about 10 times bitcoin’s current valuation, which is $104,000.”

Don’t miss our article: Morgan Stanley sees the USA buying 3.7M bitcoins.