New Financial Era: Bitcoin as the New Weapon of Economic Power

It is easy to become discouraged about Bitcoin these days. After all, the cryptocurrency has fallen more than 20% from its record high of $109,000 in January. And due to the ongoing uncertainty around tariffs, it has failed to live up to the sensational hype that surrounded it earlier this year. However, this may turn out to be the last chance to ever buy Bitcoin for under $100,000. Two fundamental changes are currently taking place in global financial markets, and Bitcoin is at the core of both.

Bitcoin as Digital Gold

The first major shift concerns the perception of Bitcoin by investors. Is it an inflated, speculative digital asset? Or a risky tech stock? Or something entirely different? At the start of the year, Bitcoin was behaving like a speculative digital asset. Analysts quickly began making price predictions of $200,000 by January. At the time, the cryptocurrency was trading around $100,000, and it seemed like an obvious candidate to double in value by the end of the year. But after President Donald Trump announced new tariffs against Canada, Mexico, and China at the end of January, Bitcoin began to behave much more like a risky tech stock. In other words, when tech stocks were falling, Bitcoin was falling too. As a result, the price of Bitcoin became extremely volatile and began swinging on a daily basis. Every new change in tariff policy impacted tech stock prices, and therefore, the price of Bitcoin.

However, since the “Liberation Day,” when Trump revealed his tariff plans, something very interesting has been happening – the price of Bitcoin has remained relatively stable. On April 2, it was trading at $85,000, and nearly three weeks later, it is still trading around $85,000. This has led to the development of a very interesting investment thesis for Bitcoin: it could truly be a long-term store of value. In other words, it may indeed be digital gold, as enthusiasts have been claiming for years. Just as gold can serve as protection against economic uncertainty and inflation, so can Bitcoin – due to its inherent scarcity. This is a point that some leading hedge fund managers have been emphasizing for months. This kind of thinking is starting to infiltrate the mainstream investment narrative. Outflows from Bitcoin spot ETFs have started to reverse, with capital once again flowing in.

The White House and Bitcoin

Another fundamental change is related to government support for Bitcoin as a national strategic asset. Just as countries stockpile reserves of oil and other commodities, they are now starting to accumulate Bitcoin. The most obvious sign of this change was the creation of a Strategic Bitcoin Reserve by the White House in March. Several states – including Texas, Arizona, and North Carolina – are also beginning to draw up plans for their own state-level Bitcoin reserves. As part of this new paradigm, on April 15, the first-ever summit on the Strategic Bitcoin Reserve was held. Panelists discussed the geopolitical dimensions of Bitcoin and its potential role in reshaping the global financial system. This concept of Bitcoin as a strategic asset is beginning to resonate in other countries as well. Plans for Bitcoin reserves are emerging in developing markets.

Some even suggest that if the U.S. government aggressively starts buying Bitcoin, it could spark a “Bitcoin arms race” with Russia or China. The situation becomes even more interesting when you consider that Bo Hines, the CEO of the President’s Council on Digital Assets, recently proposed that new tariff revenues be used to buy Bitcoin. This is significant because the U.S. government cannot currently buy more Bitcoin unless it is done in a “budget-neutral” way (i.e., without new taxes). The new tariff revenues could potentially qualify as “budget-neutral.” In theory, some of the new tariff revenues could be directed to the U.S. Department of the Treasury, which is responsible for the Strategic Reserve, to purchase Bitcoin on the spot market.

How High Can Bitcoin Go?

Even if you dismiss the idea of a Strategic Bitcoin Reserve as just noise, the fact remains that serious discussions are currently taking place about how Bitcoin could help the U.S. government achieve its strategic goals. If Bitcoin begins to follow the upward trajectory of gold this year, its price could reach $150,000 by the end of the year. Yes, I think you should consider buying Bitcoin while it’s still under $100,000. The White House is unlikely to back down from Bitcoin – and neither should you.