The discussion of Bitcoin as a strategic asset is gaining traction globally. In 2024, both U.S. Senator Cynthia Lummis and Donald Trump proposed establishing a national digital asset reserve. El Salvador has already adopted Bitcoin as legal tender, and countries like Germany and Japan are exploring similar policies. However, the implementation of a federal strategic Bitcoin reserve in the U.S. faces significant hurdles, including internal Republican divisions and opposition from Democrats. Despite these challenges, Trump's recent reiteration of the strategic reserve idea and the upcoming crypto summit on March 7 have boosted market confidence. If realized, even a mini-version of the strategic reserve could be a milestone, prompting other nations to follow suit.

Adequate liquidity is a prerequisite for a bull market, and there is potential for interest rate cuts in 2025. As of March 2025, the Federal Reserve has maintained interest rates between 4.25%-4.5%, with expectations of possible rate cuts later in the year. Economists predict that if economic data weakens, the Fed might cut rates in May or July. Additionally, Trump's imposition of tariffs on Canada, Mexico, and China in February 2025 could pressure the economy into recession, potentially forcing the Fed to cut rates further to stimulate growth. Research shows a high correlation (0.94) between Bitcoin prices and global M2 money supply growth. Analysts like Bitcoindata21 and Colin Talks Crypto have suggested that a weakening dollar and increasing global M2 will positively impact Bitcoin prices.

As of early 2025, the stablecoin market has exceeded $200 billion, attracting global regulatory attention. The EU has implemented the MiCA regulation, and the U.S. Congress is reviewing stablecoin bills like the Clarity for Payment Stablecoins Act. In recent months, several crypto projects and exchanges have seen their SEC lawsuits dismissed, indicating a potentially friendlier regulatory environment. Clear regulatory frameworks and stablecoin legislation could bring more clarity and certainty, paving the way for traditional financial institutions to enter the crypto market, increasing funds and liquidity.

Paradigm has urged Ethereum core developers to accelerate protocol upgrades to maintain its position as the leading Layer 1 blockchain. Ethereum's ecosystem is the most dynamic in the crypto space, with significant advancements in Web3 applications. Ethereum's upgrades, such as the upcoming Pectra upgrade in April 2025, which includes up to 20 Ethereum Improvement Proposals (EIPs), could significantly enhance its scalability and efficiency. Analysts believe that Ethereum's progress could reverse its current stagnation and drive the broader crypto market.

The potential for Bitcoin to reach $100,000 and for a full bull market to return in 2025 remains plausible, though uncertainties persist. The likelihood of a strategic reserve being established seems higher, while interest rate cuts are less certain. Regulatory clarity and Ethereum's upgrades are expected to have a positive impact. Overall, the outlook is cautiously optimistic, with several factors aligning to potentially drive Bitcoin and the broader crypto market higher.