Cathie Wood Predicts Trump Could Push Bitcoin Reserve Plan in 2026

Cathie Wood, founder of Ark Invest, said U.S. President Donald Trump may begin actively purchasing Bitcoin in 2026 for a U.S. Strategic Reserve. She argued such action could align with Trump's political goals ahead of the mid-term elections and position crypto as a key policy initiative according to Wood. Wood cited crypto's growing influence in U.S. politics, including the role of crypto voters in Trump's election victory as reported.

Wood believes the administration has been hesitant about executing the original vision for a U.S. Strategic Bitcoin Reserve. However, she anticipates a reversal driven by political and economic incentives. Trump's administration has already shown interest in crypto through regulatory and executive actions, including a de minimis tax exemption proposal for small transactions as noted.

Large-scale government Bitcoin purchases could affect the cryptocurrency's liquidity and price. Wood maintains a long-term Bitcoin price target of $1.2 million, despite trimming earlier forecasts due to stablecoin growth according to her analysis. Market participants remain divided on whether U.S. purchases will significantly alter Bitcoin's price trajectory as market observers note.

Why Did This Happen?

Trump's potential involvement in a Bitcoin reserve is driven by political and economic motivations. Wood explained that the president seeks to avoid becoming a lame duck and views crypto as a path to future influence according to her assessment. Additionally, Trump's family has significant exposure to digital assets, which may further incentivize pro-crypto policies as reported.

The original goal of the U.S. Strategic Bitcoin Reserve was to acquire 1 million BTC. Wood believes the administration will move toward that target in 2026, potentially reshaping how the U.S. approaches digital asset policy as she stated.

How Did Markets React?