Donald Trump’s Jan 20 Inauguration Sparks Bitcoin Reserve Debate: Could Prices Soar?

As President-elect Donald Trump Donald Trump   Donald J. Trump is a US-based business tycoon,  pro-crypto politician, and 47th (present) President of the United States. He comprehends the significance and needs of the modern fintech world, and people look up to him as a dominant pro-crypto politician.   Once doubtful about Bitcoin's dominance, he said in a tweet in 2019, “I am not a fan of Bitcoin", but now has a significant amount of cryptocurrency holdings in his pool. He has also signed an Executive Order to establish a Strategic Bitcoin Reserve, which highlights his commitment to the future of cryptocurrency.   Quick Facts   Full name Donald John Trump Birth 14-06-1946, New York, United States Nationality American Education BS from the University of Pennsylvania Famous For Business, Politics   Donald Trump - Career Highlights & Events   2016 – Elected as the 45th President of the United States from the Republican Party.   2017 – Signed the Tax Cuts and Jobs Act, impacting investment environments   2019 – Slammed crypto king Bitcoin on X, calls it "not money".   2025 – A gala party was hosted by him for the top 220 Trump meme coin holders.   President prepares to take office on 20th Jan, the spotlight is on Bitcoin. Many believe his pro-crypto policies could lead to a significant price surge for Bitcoin, while debates about adopting a national Bitcoin reserve are gaining momentum. Could this be the beginning of a new financial chapter for the U.S.?

Trump’s Administration Sparks Bitcoin Optimism

With Trump’s inauguration just around the corner, speculation is growing about how his administration might support cryptocurrencies. Some analysts predict that Bitcoin’s price could rise to $130,000 or even $150,000 if Trump announces crypto-friendly policies. 

One of the most talked-about ideas is Senator Cynthia Lummis Cynthia Lummis   Cynthia Lummis is a U.S. Senator and an advocate of cryptocurrency regulation in the United States. A passionate advocate for Bitcoin, she backs initiatives that foster blockchain advancement while providing regulatory certainty.   Quick Facts   Full name Cynthia Marie Lummis Wiederspahn Birth 10-09-1954, Cheyenne, Wyoming, United States Nationality American Education Juris Doctor from the University of Wyoming Husband/Partner Alvin Wiederspahn Net worth $13 million estimated   Cynthia Lummis introduced the BITCOIN Act of 2025, an innovative legislation that outlines a national cryptocurrency framework aimed at creating a Strategic Bitcoin Reserve (SBR) to improve America’s financial safety, international competitiveness, and economic independence.   Cynthia Lummis - Timeline and Events   2009 – Elected as U.S. Representative for Wyoming. 2013 – Advocated for digital financial innovation in Congress. 2020 – Elected as U.S. Senator, openly supporting Bitcoin. 2021 – Formed the Financial Innovation Caucus for crypto legislation. 2022 – Co-introduced the Lummis-Gillibrand Responsible Financial Innovation Act. 2023 – Pushed for clearer crypto regulations in the U.S. Senate. 2024 – Continued advocating for Bitcoin-friendly policies in Congress.   Through her efforts in Congress, she aims to establish the U.S. as a worldwide leader in blockchain technology, promoting financial innovation while safeguarding investor protection.   Useful Links To Connect With Cynthia Lummis   Platform Link X (formerly Twitter) twitter.com/CynthiaMLummis LinkedIn profile linkedin.com/in/cynthia-lummis Bitcoin policy blog bitcoinpolicyinstitute.org Official website lummis.senate.gov   Useful Links To Connect With Cynthia Lummis   Platform Link X (formerly Twitter) twitter.com/CynthiaMLummis LinkedIn profile linkedin.com/in/cynthia-lummis Bitcoin policy blog bitcoinpolicyinstitute.org Official website lummis.senate.gov     Investor BITCOIN Act of 2024, which proposes the Treasury buy 1 million BTC over the next five years. Supporters believe this move could strengthen the U.S. economy and reduce reliance on traditional monetary systems.

Bitcoin Reserve Debate Continues

The idea of a national Bitcoin reserve has sparked a mix of hope and concern. Supporters, like Suriname’s presidential candidate Maya Parbhoe, argue that Bitcoin could help countries escape the problems of inflation and reckless fiscal policies. 

She believes adopting Bitcoin would bring stability and protect citizens’ wealth, comparing its importance to the internet in the 1990s.

However, critics warn of potential risks. Nic Carter, a Bitcoin expert, said that while Bitcoin works well for smaller countries like El Salvador, it could destabilize the U.S. financial system. 

Others, like former New York Fed President Bill Dudley, worry that funding a Bitcoin reserve could increase national debt or cause inflation.

Meanwhile, Ki Young Ju, CEO of CryptoQuant, raised a key question calling it a “chicken-and-egg” question.

Should Bitcoin adoption happen because the dollar is losing strength, or will adopting Bitcoin trigger the dollar’s decline?

• Also Read :
•   Coinbase Urges U.S. Bitcoin Reserve, Predicts “Digital Arms Race”
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On-Chain Metrics Offer Hope

mid the debates, on-chain data is giving Bitcoin fans more reasons to be hopeful. The Coinbase premium, a metric that shows U.S. demand for Bitcoin, turned positive recently, signaling renewed interest from American investors. 

As Bitcoin’s price edges closer to its ATH of $108K, this renewed demand could push it even higher.

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