- Major tech companies like Amazon and Microsoft are considering adding Bitcoin to their balance sheets, driven by its potential as an inflation hedge
- Bitcoin’s recent surge to a new all-time high of $100,000, coupled with increasing institutional interest and bullish predictions from analysts, suggests a promising future for the cryptocurrency.
The cryptocurrency landscape is gaining momentum among industry leaders. Tech giants like Amazon and Microsoft may soon be joining the likes of Elon Musk’s Tesla and Michael Saylor’s Microstrategy to incorporate their heavy cash on their balance sheets into Bitcoin Reserves.
This has been evidenced by a report that suggests that the NCPPR has submitted a proposal to the board to invest in BTC as part of its treasury strategy, aiming for implementation by April 2025.
It is generally believed that Bitcoin has many benefits, among these, Bitcoin acts as a hedge against inflation. The National Center for Public Policy Research, a free-market think tank has proposed that Amazon diversify its $88 billion cash reserve into Bitcoin. This proposal comes as a hedge fund against inflation that has been steadily eating away at the value of traditional assets.
Notably, NCPPR’s report highlights the limitations of the Consumer Price Index (CPI), describing it as a “remarkably poor measure” of currency debasement, with real inflation potentially double the reported 4.95%.
Additionally, Bitcoin has outperformed traditional bonds. In fact, over the past twelve months, Bitcoin has outperformed bonds by 126%, and its five-year price appreciation of 1,246% far surpasses other assets. By adopting Bitcoin, Amazon could enhance shareholder value and mitigate the inflationary impact on its cash holdings.
Meanwhile, Microsoft shareholders are set to vote on a similar proposal to incorporate Bitcoin into the company’s balance sheet. MicroStrategy chairman Michael Saylor has shared a detailed plan with Microsoft on how Bitcoin adoption could unlock $5 trillion in additional shareholder value.
This move aligns with increasing institutional interest in Bitcoin, which analysts believe could trigger a “supercycle” for the cryptocurrency.
As we earlier reported, Since pro crypto President elect Donald Trump got elected. Bitcoin and the greater cryptocurrency landscape have been on a bullish spree. This comes at the expense of a potential friendlier landscape. Additionally, institutional interest in this new asset class has bolstered this momentum. A major tech company could provide the liquidity needed to break past the $100 barrier.
Bitcoin reached a new all-time high of $100,000 on December 6th, defying the sluggish performance of other major assets.
Crypto market analysts and banking giant Standard Chartered are optimistic about Bitcoin’s trajectory, predicting a rally to $200K by the end of 2025. Standard Chartered’s analyst Geoff Kendrick emphasized the importance of institutional adoption, including interest from U.S. retirement funds, global sovereign wealth funds, and even the potential establishment of a U.S. strategic Bitcoin reserve.
MicroStrategy’s aggressive Bitcoin purchasing strategy, targeting $42 billion over three years, further reinforces confidence in BTC’s upward momentum.
Meanwhile, Bitcoin is swapping hands with $98,197.62 marking a 2.03% decline. Additionally, the king of crypto is up in the weekly and monthly charts following a 3.45% and 28.77% surge respectively.
In the same vein, the asset’s market cap has fallen short by 1.68% stopping at $1.94 trillion.
