In a move that has stirred excitement and skepticism, U.S. President Donald Trump revealed plans to create a strategic crypto reserve. The reserve will hold five digital assets: Bitcoin, Ethereum, Solana, XRP, and Cardano.
While markets initially surged after the announcement, the enthusiasm quickly faded as concerns grew about including altcoins. Bitcoin’s price jumped briefly from $85,000 to $95,000 before falling back. Critics, including major figures in the crypto world, have raised doubts about the decision to include assets like Cardano, which they see as speculative.
Experts expect Bitcoin to lead Trump’s crypto reserve
Despite the backlash, some experts believe the reserve could be a significant positive development. Matt Hougan, Chief Investment Officer at Bitwise, argues that despite the initial inclusion of multiple assets, the reserve will likely be predominantly Bitcoin.
He suggests that the imperfect announcement has opened the door for further discussions that could lead to a more Bitcoin-centric reserve. One reason for the market’s mixed response could be Trump’s unpredictability.
Historically, his proposals have evolved. For example, trade tariffs have been adjusted after initial announcements. The reserve’s structure may change as the White House prepares for a crypto summit with industry leaders, and Bitcoin might become the sole focus.
Another key point Hougan emphasizes is that the news isn’t just important for the U.S. market. Countries worldwide, including El Salvador and Abu Dhabi, have already shown interest in Bitcoin.
The U.S. move could encourage other nations to follow suit, accelerating Bitcoin’s global adoption as a strategic asset. This could trigger a race among countries to accumulate Bitcoin as part of their national reserves, especially as geopolitical tensions rise.
Finally, Hougan dismisses concerns that the reserve will be subject to political changes. He points out that crypto enjoys strong bipartisan support in the U.S., with many politicians seeing it as an important asset for future economic growth. Therefore, once Bitcoin is acquired, it is unlikely to be sold, even if political leadership changes.
While the initial rollout of Trump’s crypto reserve plan has flaws, it has sparked important discussions. If the reserve becomes more Bitcoin-centric, it could strengthen the case for crypto as a strategic asset. The market may need time to appreciate this move’s long-term potential fully.
