Could Bitcoin Reach $150,000 in 2025?

President Donald Trump took a pro-cryptocurrency stance during his 2024 presidential campaign. He recently signed an executive order calling for action on digital assets, designating a working group to discuss potential proposals and regulations, including a national stockpile.

It's probably no surprise that Bitcoin (CRYPTO: BTC) has advanced to all-time highs on the political buzz. Now, at $105,000 as of this writing, could Bitcoin continue surging to $150,000 or more?

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Investors should examine the cryptocurrency tailwinds blowing within the U.S. government for clues about where the well-known cryptocurrency could go.

Here is what you need to know.

Cryptocurrencies are becoming increasingly popular among the public

If you're unfamiliar with Bitcoin, the cryptocurrency has been remarkably successful over the past decade due to its counter-inflationary nature. You might consider it a digital version of gold:

• It's a coveted asset.
• There is a limited supply.
• Bitcoin trades in fiat currency (U.S. dollars).

It makes sense that cryptocurrency received more attention during this election cycle than before. According to research by The Motley Fool, Americans have become increasingly interested in cryptocurrencies since 2021.

Political momentum is building behind Bitcoin

Over the summer of 2024, Trump spoke at a Bitcoin conference and suggested the federal government would refrain from selling Bitcoin and other digital assets it seizes. He declared the government's policy would be to hold all seized digital assets instead of auctioning them off. Promises on the campaign trail are one thing, but legitimate signs of action have emerged since the election.

Trump nominated Scott Bessent for Treasury Secretary. Bessent is a hedge fund manager and a cryptocurrency supporter. Additionally, Trump's nomination for SEC chair, Paul Atkins, is considered pro-cryptocurrency and will replace (pending confirmation) Gary Gensler, who resigned on Jan. 20. Gensler was a notorious adversary of cryptocurrency who filed multiple lawsuits against companies in the industry.

The incoming personnel group could overhaul the regulatory framework around digital assets. President Trump's recent executive order dictates that those involved with the working group will:

• Within 30 days of the order: Identify existing rules and regulations affecting the digital assets sector.
• Within 60 days of the order: Recommend whether to rescind, modify, or adopt existing regulations.
• Within 90 days of the order: Report regulatory and legislative proposals to Trump.

The order also includes evaluating the creation of a national digital asset stockpile.

It's important to note that these developments don't specifically mention Bitcoin. However, Bitcoin is the world's largest digital asset, and the government is rapidly adopting a more friendly attitude toward digital assets. I don't think it's a stretch to make that connection. A national reserve would be tremendous and potentially drive Bitcoin demand higher. However, the regulatory easing might benefit Bitcoin's long-term price trajectory even more if it leads to more people and businesses using it across the economy.

The idea of a national stockpile is getting attention, but Bitcoin's potential maturation over the next four years could be a game-changer.

Will Bitcoin hit $150,000 in 2025?

It might sound like a cop-out answer, but nobody can predict Bitcoin's future price.

But as I said in the beginning, one can look at what's happening within the government and reasonably expect progress for Bitcoin and other digital assets over the coming years. Bitcoin's market cap is currently just over $2 trillion, which still pales compared to gold's ($18.3 trillion).

That's not to say Bitcoin will reach that level. Still, the asset has already made great strides and is about to enjoy the most pro-cryptocurrency regulatory body ever. If more pro-cryptocurrency developments occur, who's to say that Bitcoin's price can't advance another 40% to 50% over the next 12 months to hit that mark?

Ultimately, the only certainty with Bitcoin is that it's a highly volatile asset that investors should hold in a diversified portfolio. Manage your risk responsibly, and you'll enjoy the ride to $150,000 if it happens and be just fine if it doesn't.

Should you invest $1,000 in Bitcoin right now?

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Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.