US Strategic Bitcoin Reserve: Could It Propel Bitcoin to $150,000 Next Year?

As Bitcoin (BTC) holds steady within a trading range of $86,000 to $90,000, following a 30% drop from its all-time high in October, market sentiment for the cryptocurrency's future looks promising. Market analyst Dominic Basulto from The Motley Fool argues that even with the ongoing challenges in the fourth quarter, Bitcoin could reach an impressive $150,000 by 2026, largely due to the new US Strategic Bitcoin Reserve.

Key Takeaways

Bitcoin currently trades between $86,000 and $90,000 after a significant correction.
Market expectations suggest a potential rise to $150,000 by 2026, supported by institutional interest and the US Strategic Bitcoin Reserve.
Comparisons with Bitcoin's past performance show strong recovery potential.
Predictions for Bitcoin's price vary, with some analysts suggesting it could hit between $150,000 to $250,000 in the near future.
The acceptance of Bitcoin as a long-term store of value is crucial for its price increases.

Bitcoin

Is a Bitcoin Price of $150,000 Realistic?

Looking at historical trends lends credence to Basulto’s forecast. Bitcoin's past performance shows a strong potential for recovery; for instance, 2015 was its most challenging bull market year, yielding only a 36% gain. Notably, Bitcoin has achieved triple-digit percentage gains in seven of its years.

Basulto believes that 2026 may mirror 2019, a year when Bitcoin saw a 95% increase following a disappointing 2018, where it dropped 74%. In that year, several factors, including heightened global economic uncertainty and growing institutional interest, fueled Bitcoin's rise—similar to present-day circumstances.

Institutional investors are increasingly incorporating BTC into their investments, driven by spot Bitcoin exchange-traded funds (ETFs). Additionally, ongoing concerns over global tariffs and macroeconomic instability in the US are resonating with investors, setting the scene for a potential upward trend.

However, according to Basulto, Bitcoin reaching the $150,000 milestone hinges on its acceptance as a long-term store of value. If investors consider it merely a high-risk asset, they may prefer traditional gold, which is enjoying a record-breaking year.

At the heart of this discussion lies a key factor that may significantly influence Bitcoin's valuation: a substantial increase in acquisitions by the US Strategic Bitcoin Reserve.

Implications of Countries Accumulating Bitcoin

Basulto posits that if the US government were to purchase large amounts of Bitcoin, it could instigate a global competition among other nations eager to establish their own Bitcoin reserves.

He suggests that such national-level purchases could dramatically drive up Bitcoin's price, likely outpacing the effects of corporate treasuries that have already acquired around 5% of the global circulating BTC supply.

While it may seem ambitious for Bitcoin to hit $150,000 given its recent performance, some forecasts for 2026 are even more aggressive. For example, JPMorgan Chase has projected a possible price of $170,000, while Tom Lee, a strategist at Fundstrat, has suggested that Bitcoin might even reach $250,000 next year.

Achieving such elevated prices for BTC depends on various factors aligning, particularly the strategic initiatives from both the US government and institutional investors.

Basulto concluded that if Bitcoin solidifies its standing and the Strategic Bitcoin Reserve gains momentum, the anticipated price of $150,000 could indeed be within reach by next year.

Bitcoin The 1-D chart depicts the increased volatility of BTC observed over the past few days. Source: BTCUSDT on TradingView.com

At the time of this writing, BTC has retraced to approximately $87,330 after briefly climbing above $90,500 earlier on Monday.

Featured image from DALL-E, chart from TradingView.com