- Bitcoin prices have rebounded after a sharp drop earlier this month triggered by Federal Reserve policy concerns.
- The price of bitcoin rose above $112,000 after falling below $109,000 the previous week.
- Analysts predict increased nation-state interest in bitcoin, with possible comparisons to Gold as a central bank reserve asset.
- U.S. President Donald Trump initiated steps to create a national bitcoin reserve in March, according to Treasury officials.
- Market experts remain divided on whether the current bitcoin bull cycle is continuing or nearing its end.
Bitcoin and other major cryptocurrencies rose in value this week, recovering from an earlier decline that followed worries about possible policy changes at the Federal Reserve. The rebound brought bitcoin’s price above $112,000 after it briefly dipped below $109,000 last week.
Some financial analysts and crypto industry figures believe official interest in bitcoin could grow rapidly. Samson Mow, a prominent bitcoin developer, stated that U.S. moves to build a bitcoin reserve may prompt other countries to do the same in what he described as “massive” nation-state “panic.” Mow spoke to the What Bitcoin Did podcast, emphasizing that such shifts in national policy could happen suddenly.
Predictions from firms such as Fidelity and Deutsche Bank suggest that more central banks and government funds might seek to include bitcoin in their reserves. According to a recent Deutsche Bank report, bitcoin could potentially achieve status comparable to gold on the Federal Reserve’s balance sheet by 2030. Fidelity has also forecasted that official institutions could strategically position themselves in the bitcoin market.
In March, U.S. President Donald Trump followed through with a pledge to create a government-held bitcoin reserve. U.S. Treasury Secretary Scott Bessent confirmed last month that the administration is working to establish this reserve in a budget-neutral way.
Despite recent policy developments, Mow expressed surprise that bitcoin’s rally has stalled over the past year. He noted that prices soared above $100,000 following Trump’s win in November but have struggled to surpass that level in 2025. “We should have had a bull run already… this cycle… might push into next year,” Mow observed.
Market analysts remain divided over bitcoin’s direction. John Glover, Chief Investment Officer of Ledn, said, “In the one camp are people like myself, who are forecasting higher prices in to year end,” projecting values as high as $145,000 in the near future, though he also acknowledged the possibility of a new bear market starting soon. Others argue that the most recent bull run, which started in November 2023, may have ended after reaching its target of $125,000.
The future trajectory of bitcoin remains uncertain as official interest and market debates continue to shape price movements.
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