Bitcoin (BTCUSD) has been consolidating in recent weeks as the market digests what President Donald Trump’s tariffs, and the subsequently emerging trade war, could mean for the U.S. economy in 2025.
At writing, the digital asset sits at about $85,000 – down significantly from its high of $109,000 in January.
While the near term may remain a bit wobbly, the longer-term prospects for BTC remain strong as ever, according to Larry Fink, chief executive and chairman of the world’s largest asset manager, BlackRock (BLK).
Fink remains bullish on the crypto market leader as he sees potential in it to one day replace the U.S. dollar as the world’s reserve currency.
Why May Bitcoin Replace U.S. Dollar as the Reserve Currency
According to Larry Fink, the U.S. dollar “risks losing its position to digital assets like Bitcoin” if the Trump administration fails at lowering the nation’s debt load.
Since 1989, the world’s largest economy has seen its debt grow thrice as fast as its gross domestic product (GDP). In fact, the U.S. debt is expected to accrue nearly $1 trillion in interest payments this year, he revealed in his annual letter to investors on March 31.
Under Trump, the U.S. has already established a strategic Bitcoin reserve as part of the administration’s commitment to making America the crypto capital of the world.
Other nations, including Russia and China, are also currently exploring the potential of BTC in international trade.
Why Is Reserve Currency Status Positive for the BTC Price?
If Bitcoin were to become the world’s reserve currency, its price could explode to unprecedented levels due to a massive surge in demand.
For starters, the world’s largest cryptocurrency would be the medium for international trade and transactions, which would certainly lead to increased liquidity.
Additionally, central banks, governments, financial institutions, and even businesses would want exposure to BTC if it were to challenge the U.S. dollar’s reserve currency status. Continued interest from these big buyers could bring a higher price tag to Bitcoin.
Note that BlackRock’s Fink is not alone in keeping bullish on Bitcoin amidst recent volatility. Cardano (ADAUSD) founder Charles Hoskinson also expects the crypto king to hit $250,000 by the end of 2025.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
