Bitcoin surged to an all-time high this week as excitement over Donald Trump’s presidency reached fever-pitch. The price of Bitcoin shot up to around $110,000 on inauguration day, following the launch of the President’s own meme coin – a move which was widely read as a full-throated endorsement of the crypto sector. President Trump also took the opportunity to get in on the action himself, with the Trump-linked Liberty Financial picking up $47 million in Bitcoin on Monday to commemorate the 47th President’s return to office. With speculation over the creation of a US strategic Bitcoin reserve mounting, many analysts say the price of Bitcoin is poised to rise even higher.

Strategic Bitcoin reserve ‘looks likely’

President Trump’s pledge to create a US strategic Bitcoin reserve always looked like a longshot, but in light of the new administration’s dramatic and fast-moving initiatives, some observers think the blue-sky plan is now likely to become a reality. Although there was disappointment on the first day of the presidency that no new Bitcoin policies were announced, crypto enthusiasts had their hopes lifted by President Trump’s pardon of Silk Road founder Ross Ulbricht.

Ulbricht, who became a cause célèbre for many libertarian types, was jailed in 2013 for setting up and operating a dark web marketplace which facilitated the illegal sale of drugs, among other things. Operating under the alias ‘Dread Pirate Roberts’ Ulbricht was an early adopter of Bitcoin because of the anonymity it provided and its separation from any central bank. Though few complained of his prosecution, many felt his custodial sentence of two life sentences plus forty years was excessive, and issuing a full pardon on Tuesday, President Trump said he agreed.

Some investors see Trump’s pardoning of Ulbricht as a further sign the President is serious about following through on his campaign promises, particularly as they relate to the crypto space. Posting to X, Capital Management CEO Anthony Pompilano said: “If Ross Ulbricht got the pardon, we are definitely getting the Strategic Bitcoin Reserve. Trump will create history with the stroke of his pen.”

Forbes reported the pardon prompted Polymarket odds on the creation of a Bitcoin reserve within Trump’s first 100 days to shoot up, with many prominent names in the crypto space taking to social media to reaffirm their confidence that the reserve will become a reality.

It comes as some US states appear to be getting ahead of the administration to try and create their own strategic Bitcoin stockpiles, Bloomberg reports, with around 13 states looking to develop crypto reserves. As the outlet reported on Monday:

“Instead of waiting to see whether Donald Trump follows through on his endorsement of a national strategic Bitcoin stockpile, states are taking matters into their own hands…

“The Texas Strategic Bitcoin Reserve Bill, filed by Representative Giovanni Capriglione in December, would enable the Lone Star State to accept Bitcoin donations from Texans and US-based companies to build its reserve. States like Massachusetts, Wyoming and New Hampshire have recently followed suit. According to one lobbyist, at least 13 states in total are poised to propose similar legislation.”

However, other observers think the US strategic Bitcoin reserve is destined to remain a pipedream. Arthur Hayes, chief investment officer at Malestrom said he felt there were too many political and financial priorities vying for Trump’s attention which would preclude him from exercising the enormous political capital which would be required to actualise the policy. In comments to CoinDesk, he said:

“I don’t think Trump will get around to doing a bitcoin reserve…At the end of the day, I don’t know how borrowing money to buy Bitcoin helps on any of Trump’s platforms.

“You have so much borrowing capacity before you destroy the bond market. Are you going to borrow money to buy Bitcoin? Are you going to borrow money to give health care to the seniors who voted you in, or to build more bombs so that the defence lobby likes you?

“There’s a lot of different things you can borrow money to spend it on. I just don’t think that he’s going to spend it on bitcoin. Whilst as important as bitcoin bros think they are, there’s a lot of other interested parties that want that borrowed money to go into their pockets.”

Trump-mania fuels Bitcoin surge

Bitcoin continues to put in a strong performance, with many analysts predicting the cryptocurrency will continue to beat record after record this year. The surge is being led by bets that Donald Trump will award the once niche internet token a redoubtable place in the financial landscape as a universally respected and trusted commodity. Speaking to The Independent, Ed Hindi at Tyr Capital said:

“We believe Trump will turn some of his crypto rhetoric into action in his first 90 days in office and this should catapult prices…

“Creating a US bitcoin strategic reserve will be one of them. Other countries will be forced to follow suit and hence create a price action virtuous cycle.”

Speaking on Monday, the deVere Group CEO Nigel Green said he expects Bitcoin to potentially reach $150,000 by the end of the year, with its price boosted by a suite of pro-crypto policies pledged by the new Trump administration. He said:

“President Trump’s return to the White House could signal the Golden Age for crypto as it’s anticipated to usher in policies favourable to the sector.

“Trump’s administration has signalled intentions to provide clearer regulatory frameworks, potentially setting up a national Bitcoin reserve, and installing a crypto council of top-level advisors. All of these steps are likely to encourage further institutional investment in digital assets.

“Stubborn inflation and geopolitical uncertainties continue to affect traditional markets, leading investors to seek alternative assets. Bitcoin’s decentralised nature and limited supply position it as an attractive hedge against economic instability. The crypto’s resilience and potential for growth make it a compelling addition to diversified investment portfolios.”

In recent comments to Quartz, Aquinas Wealth Advisors CEO Christopher McMahon explained his Bitcoin price target of $130,000:

“I don’t think we’ve ever seen a more favourable environment for crypto. Bitcoin got up to $109,000 the other day. I think today it’s still $103,000. We actually see it just from this momentum, the president endorsing it, the new head of the SEC coming in as a kind of a crypto guy, we see the thing to be $130,000….

“It’s not on Main Street yet, but I think it’s coming. And for investors, I think it’s a tremendous opportunity. And I think everybody’s portfolio should have some exposure to crypto.

Is there an opportunity in Bitcoin right now?

Bitcoin’s recent surge to an all-time high of $109,225 on Inauguration Day illustrates how political developments are shaking up the crypto space. President Donald Trump’s enthusiasm for digital assets, exemplified by the launch of meme coins $TRUMP and $MELANIA, as well as the establishment of a crypto task force, has injected renewed enthusiasm among investors.

Hopes are now riding high Bitcoin could be propelled further by the establishment of a strategic Bitcoin reserve. BlackRock CEO Larry Fink has suggested if such a reserve is created the price of Bitcoin could reach as much as $700,000.

While the future of a U.S. strategic Bitcoin reserve remains uncertain, the confluence of political endorsement, institutional interest, and regulatory initiatives has many analysts saying that Bitcoin is on track for more growth. However, investors should be minded to maintain a balanced portfolio and consider the volatility inherent in the crypto markets. Always seek professional financial advice before making any investment decision.