$10 Trillion Bitcoin Prediction Sparks Frenzy Amid U.S. Policy Shifts

‘This Is A Big Deal’—$10 Trillion Bitcoin Predicted Amid U.S. Policy Shifts

Bitcoin and cryptocurrency markets have experienced a significant rebound following U.S. President Donald Trump's announcement to pause tariff threats with Mexico and Canada for a month. This decision alleviated market fears, pushing Bitcoin prices back above $100,000 per coin after dipping to $91,000 earlier in the week. According to Forbes, traders are now speculating on Bitcoin potentially surpassing gold's $18 trillion market capitalization.

Adding to the momentum, Trump signed an executive order directing the Treasury and Commerce departments to establish a sovereign wealth fund within a year. This has fueled speculation about potential U.S. government Bitcoin purchases. Senator Cynthia Lummis, a Bitcoin advocate, called the move a "₿ig deal," hinting at its potential to bolster U.S. Bitcoin reserves. However, a press conference by U.S. crypto czar David Sacks left traders disappointed, as no immediate plans for a Bitcoin reserve were confirmed. Analysts remain optimistic, with Standard Chartered Bank's Geoff Kendrick predicting Bitcoin could reach $500,000 by 2029, achieving a $10 trillion market cap. (Source: Forbes, https://www.forbes.com/sites/digital-assets/2025/02/05/this-is-a-big-deal-bitcoin-and-crypto-now-braced-for-a-huge-us-price-earthquake/)

Crypto Market Faces Uncertainty Amid Slow Progress on U.S. Bitcoin Reserve

The cryptocurrency market has turned cautious as major coins like Bitcoin, Ethereum, and Solana saw declines of up to 3%. According to CoinDesk, the market's sentiment has been dampened by slow progress on the U.S. strategic Bitcoin reserve and tightening dollar liquidity. Geo Chen, a macro trader, noted that hopes for Trump to "buy everybody's bags" are unlikely to materialize soon, leaving the market vulnerable to risk aversion.

Ethereum has faced additional challenges, with its price dropping 15% this month and hitting a four-year low against Bitcoin. Analysts attribute this to the rapid expansion of Solana's ecosystem, which offers higher throughput and performance. Meanwhile, gold prices have surged to $2,877 per ounce, reflecting a shift in investor preference amid trade war concerns. (Source: CoinDesk, https://www.coindesk.com/daybook-us/2025/02/05/crypto-daybook-americas-somber-crypto-market-eyes-slow-progress-on-u-s-bitcoin-reserve)

XRP Price Recovery Hinges on Bitcoin’s Next Move

XRP has faced significant losses, dropping below key support levels at $2.95 and $2.70, with its price stabilizing at $2.33. BeInCrypto reports that XRP's recovery is closely tied to Bitcoin's trajectory, given their 0.92 correlation. A Bitcoin rally above $100,000 could provide the momentum needed for XRP to reclaim lost ground.

For XRP to regain bullish momentum, it must surpass $2.70 and eventually $2.95. Analysts suggest that Bitcoin's stabilization could uplift the broader market, including XRP. However, the current bearish sentiment poses challenges for a swift recovery. (Source: BeInCrypto, https://beincrypto.com/xrp-price-crash-recovery-hinges-on-bitcoin/)

Bitcoin Market Cap Surpasses $2 Trillion

As of January 2025, Bitcoin's market capitalization has exceeded $2 trillion, marking a significant milestone in its growth trajectory. According to Statista, Bitcoin's dominance in the cryptocurrency market remains above 50%, highlighting its strong position compared to altcoins. With over 19 million Bitcoins already mined, the cryptocurrency is nearing its maximum supply of 21 million, expected to be reached by 2140.

This scarcity, combined with increasing institutional interest, continues to drive Bitcoin's value. The cryptocurrency's market cap has grown exponentially since 2013, when it was valued at approximately $1 billion. (Source: Statista, https://www.statista.com/statistics/377382/bitcoin-market-capitalization/)

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