Matthew Sigel, head of digital assets research at global asset management firm VanEck, suggested in a recent interview with Natalie Brunell that the U.S. government might establish a strategic Bitcoin reserve in 2024. He speculated that this could involve reclassifying the approximately 200,000 Bitcoin already held by the government, seized in criminal cases, as a reserve asset with a pledge not to sell. Alternatively, he predicted that individual states, such as Pennsylvania, Florida, or Texas, might establish their own Bitcoin reserves.

Last Friday, unveiled its vision for cryptocurrency markets in 2025, offering notably optimistic projections across multiple sectors.

Their market outlook suggests an intriguing year ahead for crypto prices. Breaking from traditional market cycle patterns, the firm sees major cryptocurrencies hitting an early peak in 2025’s first quarter before surging to new records by year-end. Bitcoin could reach $180,000 under this scenario, with Ethereum exceeding $6,000. Smaller but significant cryptocurrencies are also featured in their forecast, with Solana potentially crossing $500 and Sui moving beyond $10.

Perhaps most striking is their prediction about U.S. government involvement in the crypto sector. The investment firm believes American authorities will begin treating Bitcoin as a strategic asset, potentially establishing official reserves. This shift would accompany broader changes in investment options, as a new SEC administration could greenlight various crypto investment products, including ones that combine traditional fund structures with staking capabilities.

The firm’s analysis points to a dramatic expansion in blockchain’s role in traditional finance. Security tokenization, which grew by nearly two-thirds to reach $12 billion in 2024, could more than quadruple. This growth would mark a significant shift from private to public blockchains as major financial institutions begin bridging these previously separate worlds.

Digital payments could see equally dramatic changes. Building on the substantial growth seen in 2024, VanEck expects stablecoin transaction volumes to triple, handling $300 billion daily by late 2025. This would represent a meaningful portion of traditional financial settlement volumes, suggesting stablecoins’ evolution from crypto-specific tools to mainstream payment methods.

Technical developments also feature prominently in their outlook. VanEck believes that they say Bitcoin’s Layer-2 networks could attract significant capital, potentially holding 100,000 BTC, while Ethereum’s technical upgrades could generate substantial fee revenue through increased data handling capabilities.

The decentralized finance sector appears poised for substantial growth in VanEck’s analysis. They project unprecedented trading volumes reaching $4 trillion, with $200 billion locked in various protocols. This expansion would largely stem from new AI-related tokens and increased mainstream adoption.