Crypto investing just got a lot more profitable. You see, last Thursday, the price of Bitcoin rallied to more than $105,000.
Not an all-time high, but a signal that with the right policy support, the crypto giant has plenty more room to run.
You see, Bitcoin rallied that day after Fed chair Jerome Powell made the following announcement:
Banks are perfectly able to serve crypto customers as long as they can understand and service the risks.
This news came in as the Fed announced it would keep rates steady after a rate-cut cycle began about five months ago.
To be sure, Bitcoin tends to perform well in the presence of low interest rates. So recent rate cuts coupled with the incoming Trump presidency created the perfect environment for a big run. But when the Fed announced interest rates would remain steady, Bitcoin slipped a bit. Then quickly recovered.
Powell’s remarks certainly helped instigate that recovery, but we maintain that enthusiasm over crypto investing, and Bitcoin specifically, also contributed. And much of this is the result of Trump’s plan for a strategic Bitcoin reserve.
Thank Trump for the Crypto Investing Boom
Love him or hate him, with a strategic Bitcoin reserve, Trump is legitimizing cryptocurrency. This is not trivial. In fact, several states have since announced their own plans for a Bitcoin reserve, too. These include: Texas, New Hampshire, Ohio, Pennsylvania and Oklahoma.
And just last week, the Czech Central Bank Chief announced he’s now considering Bitcoin as a possible reserve asset.
According to Bloomberg, if Governor Ales Michl makes this happen, Czechia would become one of the first countries to hold part of its reserves in crypto.
Michl, who took over the monetary institution in 2022 with a goal to tame the worst inflation crisis in three decades, has also made diversifying the bank’s investments one of his priorities. The plan, designed to make the bank profitable, includes boosting holdings of gold and stocks, especially in the US market.
Bitcoin is worth considering for potential inclusion in the reserves because it’s not correlated to bond prices, Michl said in a post on X social media platform, noting that it’s an “interesting asset for a large portfolio.”
The comments followed an interview in the Financial Times published Wednesday, which cited Michl as saying that the board is expected to discuss a proposal to buy bitcoin — and that it could potentially represent 5% of the reserves.
Indeed, this strategic Bitcoin reserve idea has become infectious, and will likely not stop with the U.S. and Czechia. Worth noting: El Salvador has already added Bitcoin to its own strategic reserve. It now contains more than 6,000 Bitcoin, valued at about $600 million.
According to Fitch, El Salvador has about $3.7 billion in its central reserve bank. Which means about 16% of the country’s reserves are already in Bitcoin.
Make no mistake: in 2025, you’re going to see at least a half dozen other countries taking the same path. And you better believe we’re going to take full advantage. Not just by owning Bitcoin. But also by owning shares of the company that provides the very Bitcoin these countries are buying.
This particular company, which you can buy shares of right now, has already allowed us to score gains in excess of 6,700%. But think how much higher this thing is going to go. Especially, now that individual countries are going to be adding Bitcoin to their strategic reserves.
Make no mistake: when it comes to crypto investing, this is what will give you the most bang for your buck. And if you don’t believe me, just look at the numbers for yourself.
To a new way of life and a new generation of wealth…
Jeff Siegel
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Jeff is an editor of Energy and Capital as well as a contributing analyst for New World Assets.
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