Trump Task Force Eyes National Bitcoin Reserve

In a significant development, a cryptocurrency task force under former President Donald Trump is exploring the possibility of establishing a national Bitcoin reserve. This move, if implemented, could potentially position Bitcoin as a strategic asset and encourage other nations to adopt similar measures. The task force is currently debating whether the Federal Reserve or the Treasury Department should oversee the Bitcoin reserve. If the Fed were to manage the purchase, legislative approval would be necessary, as the Fed has maintained that current laws do not permit Bitcoin holdings.

Several funding methods for the Bitcoin reserve have been proposed. One option involves selling part of the US gold reserves, a move that might face public opposition. Wyoming Senator Cynthia Lummis has championed this idea, proposing a bill that advocates for acquiring one million Bitcoin over five years using gold certificates held at the Federal Reserve’s 12 banks. Another option is issuing debt to finance the acquisition. A third method includes using confiscated Bitcoin, with the US government currently holding around 200K BTC worth approximately $20 billion from enforcement actions.

A national Bitcoin reserve could potentially spark the next bull run, according to brokerage firm Bernstein. The launch of Bitcoin exchange-traded funds (ETFs) in 2024 demonstrated how institutional adoption can affect market prices. Anticipation of Bitcoin ETFs initially drove prices from $25,000 to $48,000, and further inflows pushed Bitcoin to $73,750. Optimism surrounding the return of Donald Trump contributed to Bitcoin reaching an all-time high of approximately $110,000. As of this press time, Bitcoin is trading at $95,377, down 1.0% in the last 24 hours.

Institutional investments continue to play a crucial role in Bitcoin’s market trajectory. Abu Dhabi’s Mubadala invested $437 million in BlackRock’s Bitcoin ETF, signaling growing interest from sovereign wealth funds. MicroStrategy’s continuous Bitcoin accumulation and the potential for more crypto-friendly regulations in the US also add to the positive outlook for Bitcoin’s long-term stability.

If the US moves forward with a Bitcoin reserve, it could set off a global trend where central banks begin accumulating Bitcoin as a reserve asset. However, regulatory challenges and public skepticism might slow the effort. The Federal Reserve’s previous stance against holding Bitcoin remains a significant barrier, and any legislative push to change