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

Tech giants like Amazon, and Microsoft, with heavy cash on balance sheets, are now looking to build Bitcoin reserves, similar to what Tesla and MicroStrategy have done in the past. The latest report suggests that the National Center for Public Policy Research (NCPPR) has submitted a proposal to add BTC to its balance sheet as part of the corporate treasury strategy by April 2025.

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

NCPPR, a free-market think tank has suggested Amazon put part of its $88 billion cash reserves into Bitcoin, as a hedge against inflation. In comparison to traditional assets and corporate bonds, the think tank also highlights Bitcoin’s greater supremacy, Additionally, it also states how Tesla and MicroStrategy have been successful by gaining Bitcoin exposure over the past few years.

In its report, NCPPR noted that the inflation-measuring metric – Consumer Price Index (CPI) – is currently at 4.95%, calling it a “Remarkably poor measure” of currency debasement. The author Tim Kotzman stated that the true inflation could be double of the reported CPI figure.

This significantly depletes Amazon’s $88 billion in cash and short-term cash equivalents, the letter emphasized, suggesting that Bitcoin (BTC) should be utilized as a hedge to safeguard shareholder value. While comparing the Bitcoin price performance with corporate bonds, the report noted:

“As of December 6, 2024, the price of Bitcoin increased by 131% over the previous year, outperforming corporate bonds by 126% on average. Over the past five years, the price of Bitcoin increased by 1,246%, outperforming corporate bonds by 1,242% on average.”

Bitcoin is facing strong resistance at $100K level amid strong selling pressure from long-term holders. However, any news of a purchase from Amazon could usher in strong liquidity for the asset.

Interestingly, this development comes at a time when Microsoft shareholders are set to vote for putting Bitcoin on the company’s balance sheet. MicroStrategy chairman Michael Saylor has shared a blueprint with the tech giant to bring $5 trillion additional value for MSFT shareholders.

BTC to $200K In 2025?

Crypto market analysts believe that this is the beginning of the Bitcoin supercycle with the BTC price rally likely to extend to $200K by 2025 end. Banking giant Standard Chartered predicted that BTC rally to $200K is very much possible by the end of 2025. In a note shared with investors, Standard Chartered analyst Geoff Kendrick said:

“We would turn even more bullish if BTC saw more rapid uptake by U.S. retirement funds, global sovereign wealth funds, or a potential US strategic reserve fund. In 2025, we expect institutional flows to continue at or above the 2024 pace. MicroStrategy is running ahead of its USD 42 billion three-year plan, so its purchases in 2025 should match or exceed its 2024 purchases”.

As of press time, BTC price was trading 0.45% down at $99,786 with a market cap of $1.97 trillion while its daily trading volumes surged 30% to more than $53 billion. This has significantly cooled down considering $100 billion-plus in daily trading volumes last when BTC rallied to its all-time high levels.