KULR Technology seems very confident in its prediction for the crypto king as the company bought $21 million worth of Bitcoin on Jan. 6. Institutional interest and regulatory advancements, such as the proposed US Bitcoin Act, are also expected to fuel growth. Additionally, crypto miners boosted their BTC holdings in 2024, and diversified into AI and HPC for added revenue streams. KULR Technology Sees Bitcoin Doubling Bitcoin's price trajectory continues to fuel speculation and optimism, with forecasts suggesting a potential peak of $200,000 during the 2025 market cycle. This ambitious projection came from KULR Technology Group , a New York Stock Exchange-listed company, that recently made headlines for its large Bitcoin acquisition. The company purchased more than $21 million worth of Bitcoin at an average price of $97,391 on Jan. 6, just before the crypto reclaimed the $100,000 mark for the first time since mid-December. Michael Mo , the CEO of KULR Technology, is confident in Bitcoin's potential to double its current valuation due to increasing global adoption and the possibility of strategic Bitcoin reserves being implemented by nations like the United States, Germany, and Switzerland. KULR’s December acquisition of 217.18 BTC was the beginning of its broader strategy to allocate up to 90% of its surplus cash into Bitcoin. According to Mo, the adoption of Bitcoin reserves by states could act as a key catalyst for its price surge, especially with legislation like the US Bitcoin Act that was proposed by Senator Cynthia Lummis in place. The broader market sentiment is also supported by Adam Back, CEO of Blockstream, who believes that Bitcoin could eventually surpass $1 million if the Bitcoin Act gains traction among US lawmakers. To reach the anticipated $200,000 mark, Bitcoin will need to attract an additional $2 trillion in market capitalization, overtaking Apple's valuation to become the second-largest global asset. BTC’s price action over the past year (Source: CoinMarketCap ) The interplay between regulatory developments and Federal Reserve policies is also expected to shape Bitcoin’s price in the coming years. Binance Research mentioned that Bitcoin’s rally to its all-time high of $108,300 was partly driven by expectations of more favorable crypto regulations and monetary easing. However, the Federal Reserve’s decision to scale back planned interest rate cuts in late 2024 led to a market correction that briefly drove Bitcoin below $100,000. Sustained recovery and growth, according to Binance Research, hinges on the successful implementation of crypto-friendly regulations and the Fed’s policy direction. Institutional adoption also continues to rise, which adds even more momentum to Bitcoin’s prospects. Bitcoin Gains Attention from Czech National Bank The governor of the Czech National Bank, Aleš Michl , recently started discussions about Bitcoin's role as a diversification tool for national reserves. In a recent interview, Michl expressed his interest in exploring Bitcoin as part of the bank’s foreign exchange strategy, though he acknowledged that buying “a few Bitcoin” will not constitute a large investment. Any decision on such a move will require approval from the bank’s seven-member board, and according to Janis Aliapulios, an adviser to the board, the bank is not currently planning a Bitcoin investment. Nevertheless, Michl is still open to future debates on the topic. For now, the Czech National Bank’s diversification efforts will focus more on increasing its gold holdings to approximately 5% of its total assets by 2028. Bitcoin, however, continues to present itself as a potential reserve asset, with a 131% yearly return compared to gold's 30% rise during the same period. Anndy Lian , a blockchain expert, pointed out the potential shift in global finance should Bitcoin become a staple in national reserves. A development like this could redefine the concept of a “safe” reserve asset, moving towards more decentralized and digital approaches to economic stability. However, Lian also warned that Bitcoin’s price volatility could pose risks for national reserves that could potentially lead to financial swings. The concept of a strategic Bitcoin reserve gained a lot of traction in other parts of the world as well. Specifically, US Democratic Representative Ro Khanna recently endorsed the idea, and states like Texas and Pennsylvania have made similar proposals. Miners Boost BTC Holdings The Bitcoin mining industry experienced a record-breaking year in 2024 that was marked by increased competition and market volatility. This led many companies to adopt more innovative strategies. According to a report by NiceHash and Digital Mining Solutions, public Bitcoin miners increasingly mirrored MicroStrategy's approach by boosting their Bitcoin treasury holdings. Companies like MARA Holdings, Riot Platforms, and Hut 8 even used borrowed funds to buy additional Bitcoin, while others, like CleanSpark, opted to keep the majority of the Bitcoin they mine. This shift suggests a strategic focus on strengthening balance sheets and hedging against currency devaluation, as well as anticipation of further price appreciation. The report also pointed out that four of the 16 largest Bitcoin holders are now mining companies. Bitcoin holders (Source: Digital Mining Solutions ) Alongside these treasury strategies, 2024 saw miners diversify their operations to include high-performing computing (HPC) and artificial intelligence (AI) sectors. This trend was particularly evident in the United States, where miners looked for more predictable revenue streams to counter the volatility of mining economics. Companies like Hive Digital repurposed their Nvidia GPUs for AI applications, generating much higher revenue compared to crypto mining. Hive reported over $2 million in HPC and AI revenue in the second quarter of 2024, with AI-related tasks generating more than $2 per hour compared to just $0.12 per hour for mining. This diversification strategy proved quite successful for several miners, with HPC and AI revenue accounting for almost 8% of Hut 8's revenues and 7% of Hive Digital’s revenues during the first three quarters of the year. Rising Crypto Crimes Force Canadian Moderator Into Hiding Criminals are also after their own piece of the Bitcoin pie. A Canadian crypto forum moderator and his family have gone into hiding after narrowly escaping an attempted kidnapping and robbery targeting his Bitcoin holdings. According to a report by La Presse, the victim claimed that the attackers were prepared for extreme violence, including torture, to extract access to his crypto wallet. The man and his children managed to evade the perpetrators and have since been moving between Airbnbs to conceal their whereabouts. The victim explained that the attackers mistakenly believed he held 2.5 million Bitcoin, which is a misperception that was likely fueled by his role as a moderator of a Facebook crypto group. He clarified that his actual holdings are quite modest, and only amount to around $10,000. The incident started on Nov. 4, when two masked men threatened him outside of his home but fled after he secured his door. Days later, on Nov. 8, he was followed by a vehicle with no license plates, and a gun was pointed at him when he stopped to call the police. Four suspects were arrested in connection with the attempted abduction, with two charged for conspiring to kidnap and possession of prohibited firearms. However, the suspects were released on bail and are under house arrest, a decision that left the victim feeling very unsafe and financially strained as he tries to evade any potential threats. This case is one of many exposing the rising incidents of crypto-related crimes. Jameson Lopp, a Bitcoin cypherpunk, documented at least 181 cases of crypto-related robberies, kidnappings, and murders since December of 2014. Over the recent holiday period, several high-profile cases occurred, including a French man rescued after being found tied up in a car trunk on New Year’s Day, a Pakistani crypto trader who was forced to transfer $340,000 at gunpoint on Christmas Day, and the wife of a crypto influencer who was kidnapped in Belgium. (Source: The Press ) Lopp advised people against flaunting wealth on social media, engaging in peer-to-peer crypto trades with untrusted individuals, and wearing crypto-branded apparel to avoid becoming a target for criminals.
