This article does not serve as investment advice. The author holds no shares in any of the mentioned stocks.
The Anticipation Surrounding Trump’s Inauguration and Bitcoin
As the inauguration of president-elect Donald Trump approaches, excitement is palpable in cryptocurrency circles, particularly among Bitcoin enthusiasts. The Trump administration has hinted at the possibility of leveraging the government’s substantial collection of seized Bitcoins to establish a strategic reserve, an initiative that many believe could lead to significant price increases for the cryptocurrency. However, recent developments may temper the enthusiasm of Bitcoin supporters.
New Strategic Reserve Ideas and Their Implications
The New York Post has reported that Trump’s team is contemplating an “America-first strategic reserve,”prioritizing U.S.-origin cryptocurrencies—such as Solana, USD Coin, and Ripple—over Bitcoin. This development raises concerns among Bitcoin proponents, who fear that such a focus could undermine Bitcoin’s prominence in the cryptocurrency ecosystem.
The Trump administration is considering a strategic Bitcoin reserve. The U.S. based other coins reserve is fake news. They’d have to buy companies too.
I did recommend Trump and team to launch a sovereign wealth fund then buy companies that foster U.S. strategic interests. https://t.co/WhcVUr6rPX
— Gabor Gurbacs (@gaborgurbacs) January 16, 2025
Resistance from Bitcoin Advocates
The concept of an America-first reserve has sparked significant backlash from Bitcoin maximalists. Given the Trump administration’s sensitivity to criticisms—especially from factions within the cryptocurrency community—it’s plausible that this initiative might struggle to gain traction. Betting markets also reflect a lack of confidence in the establishment of such a reserve during Trump’s first term.
Current Odds on Strategic Bitcoin Reserve
Currently, the likelihood of President Trump implementing a strategic Bitcoin reserve within the initial 100 days of his administration is pegged at a mere 36 percent. However, projections for the reserve’s establishment sometime in 2025 stand at a more optimistic 55 percent, even following the New York Post’s report.
Upcoming Pro-Crypto Initiatives
As the new administration takes shape, several measures supportive of cryptocurrencies, particularly Bitcoin, are anticipated in the coming days and weeks:
- The inaugural Crypto Ball in Washington D.C., hosted by David Sacks, the forthcoming crypto and AI czar.
- The SEC is set to freeze ongoing enforcement actions related to crypto and Bitcoin as it reviews digital asset regulations comprehensively.
- Pending SEC legal cases pertaining to cryptocurrency will also undergo review.
- The elimination of expected crypto de-banking policies.
- The formation of a strategic reserve for digital assets.
- The repeal of SAB 121, an SEC guidance that obligates custodians to account for crypto assets as both an asset and a corresponding liability on their balance sheets, thus limiting banks’ involvement with Bitcoin and other digital currencies.
- Legislation promoting the use of stablecoins.
Your Insights Matter
Do you believe that the Trump administration will establish a strategic Bitcoin reserve in 2025? Share your perspective in the comments below.
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