With speculation swirling about the possibility of a Bitcoin strategic reserve during Trump’s first 100 days in office, Bitcoin saw a spike leading up to and on the day of his inauguration. As sentiment around Bitcoin evolves, institutional interest continues to grow, with Bitcoin ETF assets under management approaching record highs. Meanwhile, publicly traded miners are holding onto their BTC, further limiting new liquid supply. The stars appear to be aligning for a bullish 2025 for miners, offering a spark of hope amid a prolonged period of suppressed margins. Let’s dive in!
Trump Sparks Price Action Once Again
First President on the Bitcoin Blockchain
The Bitcoin Strategic Reserves Narrative
Will Trump create a Bitcoin reserve in his first 100 days?
Bitcoin ETF AUM Nearing Record High
Publicly Traded Miners Hodling Hard
Will Price Outpacing Difficulty Adjustments Once Again?
Premium Members Only:
Record Period of Suppressed Bitcoin Miner Margins
BTC Must Exceed $200K for Hashprice to Revert to Pre-Halving Levels
Turn your company into a professional operation. Go pro with MeasureX, the all-in-one platform for digital asset mining. With features like remote equipment management, real-time power consumption tracking, and a powerful billing engine for transparent invoicing, MeasureX helps miners optimize efficiency and minimize financial risks.
MeasureX tracks your sales funnel, from lead acquisition to confirmed orders. Simplify equipment purchases with your own branded marketplace. Upload your products, price groups, and inventory. With automated emails and order tracking, MeasureX handles the entire process. Combining CRM, ERP, and E-commerce, centralizes operations on a single platform.
Optimize your operations and open doors to new opportunities.
Trump Sparks Price Action Once Again
After a shaky start to last week, Bitcoin surged past the $100,000 milestone on Friday, briefly touching $105,850 in anticipation of Trump taking office. Fuelled by the euphoria surrounding Donald Trump’s inauguration, Bitcoin soared to a record-breaking $109,321 on January 20. This surge was driven by heightened expectations of a more crypto-friendly stance from the new administration. Trump has pledged to position the U.S. as a crypto leader, including plans for a national Bitcoin reserve akin to gold. However, Trump didn’t mention Bitcoin or crypto in his inauguration speech causing the price to fall as Trump spoke, but BTC remained above $100,000.
First President on the Bitcoin Blockchain
In a remarkable tribute to President Trump, Bitcoin miner MARA has inscribed his portrait into a Bitcoin block ahead of his inauguration. This unique homage, honouring the incoming administration, is embedded in Block 879613, which processed 7,396 transactions.
The Bitcoin Strategic Reserves Narrative
Several U.S. states are moving to integrate Bitcoin into their financial strategies, reflecting the growing acceptance of BTC as a legitimate asset. As of January 17, 2025, seven states have proposed establishing strategic Bitcoin reserves.
Florida is planning to formalize its Bitcoin reserve in Q1 2025, with the Florida Blockchain Business Association expressing optimism about the initiative’s success. Texas introduced legislation requiring Bitcoin to be held in cold storage for at least five years, with additional measures to restrict its use outside the state. Pennsylvania’s proposal allows up to 10% of major state funds to be allocated toward Bitcoin purchases, potentially creating a reserve worth nearly $1 billion. In Ohio, the proposed Bitcoin Reserve Act provides flexibility in acquiring and managing BTC within the state treasury. New Hampshire and North Dakota have both introduced measures to diversify their portfolios with digital assets, including Bitcoin, as a hedge against inflation. Finally, Oklahoma is considering legislation to allow pension funds and state accounts to invest in digital assets, marking another significant step toward Bitcoin adoption at the state level.
The proposed strategic Bitcoin reserves on the state level is a bold step that aligns with broader discussions about a federal Bitcoin reserve supported by President-elect Donald Trump.
Will Trump create a Bitcoin reserve in his first 100 days?
With Trump taking office, all Bitcoiners are now putting their laser eyes on a potential federal Bitcoin Strategic Reserve. Polymarket, a decentralized information market platform where users can trade on the outcomes of real-world events, created a specific market focusing on the question: “Will Trump create a Bitcoin reserve in his first 100 days?“
It will resolve to “Yes” if the U.S. government holds any Bitcoin in its reserves at any time between January 20, 2025 (ET), and April 29, 2025, at 11:59 PM (ET). It is important to note that Bitcoin confiscated by the U.S. government will not count as part of its reserves.
It’s interesting to note that since the start of the year, market participants’ confidence in Trump creating a Bitcoin reserve by the end of April has increased from 22% to almost 60%. But just like BTC price, the prediction market dropped to 36%.
Bitcoin ETF AUM Nearing Record High
Last Friday the Bitcoin Spot ETFs, closed another week with net inflows, marking three consecutive weeks of gains. After significant outflows at the end of 2024, U.S. Bitcoin Spot ETFs have started 2025 on a strong bullish note, with significant inflows reminiscent of their impressive performance during most of Q4 2024. The Bitcoin ETFs saw an aggregate inflow of $1.862 billion during the third trading week of 2025, bringing the total net inflow for the new year to $2.42 billion. The total Assets Under Management by the Bitcoin ETFs are at $122.9 billion, nearing a record high.
Publicly Traded Miners Hodling Hard
According to BitcoinMiningStock.io, only two out of the top ten publicly traded mining companies by Bitcoin holdings sold more coins than they mined. The remaining companies have increased their Bitcoin holdings compared to one month, six months, or even a year ago. Examining the one-month percentage change, the most significant growth in Bitcoin holdings came from MARA, Riot, and Hut 8. These companies are following the MicroStrategy playbook, reallocating excess cash and raising capital through debt or equity to purchase Bitcoin. The public mining companies collectively held over 92,000 BTC as of December 31st 2024. More than double in comparison to the end of 2023, a total of ~39,000 BTC.
Will Price Outpacing Difficulty Adjustments Once Again?
With Bitcoin Strategic Reserves becoming a plausible reality, potentially triggering game theory on an international scale, rising ETF demand, and dwindling available supply, Bitcoin may be on the verge of entering a parabolic phase similar to past cycles.
This could result in the price outpacing difficulty adjustments in 2025. Building mining facilities, manufacturing, and deploying ASIC hardware takes time, creating a lag between rapid price increases and hashrate growth.
In Q4 2024, Bitcoin’s network difficulty rose by 24.2%, while its price surged by 56%. This trend carried into the first three weeks of 2025, with the price climbing an over 10% while difficulty rose just 0.61%. Notably, the upcoming difficulty adjustment, estimated for January 26th, is even projected to be negative.
During the 2021 bull market, we witnessed this phenomenon first-hand: Bitcoin’s price increased faster than the network’s hashrate, creating a period of heightened profitability for miners. If Bitcoin sustains its bullish momentum in 2025, we could see a similar scenario unfold, potentially leading to another profitable cycle for miners.
The following content is exclusively for our Premium Members:
Record Period of Suppressed Bitcoin Miner Margins
BTC Must Exceed $200K for Hashprice to Revert to Pre-Halving Levels
