Will Amazon, Microsoft Drive BTC Rally to $200K in 2025?

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As a seasoned researcher with over two decades of experience in the financial markets, I find myself increasingly intrigued by the growing interest in Bitcoin among tech giants like Amazon and Microsoft. The potential move by these titans to add BTC reserves to their balance sheets is not just a significant development for the crypto market, but also a testament to its maturing status.

Major tech companies such as Amazon, Microsoft, and possibly others with substantial cash reserves are considering adding Bitcoin to their financial holdings, much like Tesla and MicroStrategy have done previously. According to recent news, the National Center for Public Policy Research (NCPPR) has proposed a plan to incorporate Bitcoin into its balance sheet by April 2025 as part of a broader corporate treasury strategy.

Amazon to Make the Bitcoin Move to Protect $88 Billion Reserves?

A free-market research organization, NCPPR, proposes that Amazon could utilize a portion of its $88 billion in cash holdings to invest in Bitcoin, serving as a protective measure against inflation. Compared to conventional assets and corporate bonds, the think tank points out Bitcoin’s superiority in this regard. Moreover, they draw attention to the success stories of companies like Tesla and MicroStrategy that have reaped benefits from acquiring Bitcoin over the past few years.

According to the NCPPR’s analysis, the Consumer Price Index (CPI), which is used to calculate inflation, stands at 4.95%. However, the organization considers this measurement as an inadequate representation of currency devaluation, referring to it as a “remarkably poor measure.” Author Tim Kotzman suggests that the actual inflation rate could be twice the reported CPI figure.

This remarkably reduces Amazon’s $88 billion in quick liquid assets and short-term investments, the letter underscored, hinting at the potential use of Bitcoin (BTC) as a protective measure to preserve shareholder worth. In contrasting the Bitcoin price trajectory with corporate bonds, the document pointed out:

By December 6, 2024, the value of a single Bitcoin had risen an astounding 131% compared to its price a year prior, surpassing the typical return of corporate bonds by 126%. Over the past five years, this digital currency’s worth skyrocketed by an astonishing 1,246%, significantly outperforming the average return of corporate bonds by 1,242%.

At the current $100K mark, Bitcoin is encountering significant obstacles due to intense selling by long-term investors. Yet, if there’s any report about Amazon making a purchase, it could trigger substantial liquidity for the cryptocurrency.

Remarkably, this advancement coincides with an upcoming vote among Microsoft shareholders concerning the addition of Bitcoin to their financial records. Michael Saylor, Chairman of MicroStrategy, has outlined a plan that could potentially generate an extra $5 trillion in value for Microsoft shareholders.

BTC to $200K In 2025?

According to crypto market experts and a report from banking titan Standard Chartered, it’s suggested that we might be witnessing the start of a Bitcoin supercycle, where the price could potentially reach $200,000 by the end of 2025. Geoff Kendrick, an analyst at Standard Chartered, expressed in a note to investors that such a Bitcoin rally up to $200,000 by 2025’s end is plausible.

As an analyst, I’d express it like this:

Currently, the Bitcoin price is currently dropping by 0.45%, standing at approximately $99,786. The market capitalization of Bitcoin stands at a staggering $1.97 trillion. Moreover, daily trading volumes have spiked by an impressive 30% to over $53 billion. However, these figures represent a decrease compared to the massive $100 billion-plus in daily trading volumes experienced when Bitcoin reached its peak all-time highs.

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2024-12-09 11:12