Trump’s Bitcoin Reserve Plan Could Boost Market Cap by $460 Billion
1min read Creating a strategic cryptocurrency reserve in the United States could significantly boost Bitcoin’s market capitalization by approximately $460 billion, according to an analysis by Sygnum Bank. This potential increase represents roughly a 25% rise in Bitcoin’s market value. The proposal for a national crypto stockpile, endorsed by former US President Donald Trump, has sparked discussions across various states, with many considering similar initiatives.
Trump’s plans for a national crypto stockpile, along with similar proposals across dozens of states, could trigger a multibillion-dollar buying spree with a 20x multiplier effect on Bitcoin’s price. This is due to the limited liquid supply of Bitcoin, which means larger inflows can cause significant upward price shocks. Katalin Tischhauser, Sygnum’s research head, highlighted that federal or state government Bitcoin buying would likely trigger another wave of allocations from institutional investors, as well as from other countries’ governments.
Institutional capital flows are already exerting a “multiplier effect” on BTC’s spot price, with every $1 billion worth of net inflows into spot exchange-traded funds (ETFs) driving an approximately 3-6% price move. This trend suggests that any government-backed investment in Bitcoin could have a substantial impact on its market value.
On March 2, Trump confirmed his commitment to creating a US crypto stockpile holding Bitcoin, as well as altcoins such as Ether (ETH) and Solana (SOL), among others. Crypto markets initially surged following Trump’s announcements, but later surrendered those gains as macroeconomic unease and other factors took center stage. Trump has endorsed the idea of a national crypto pool since July 2024, when US Senator Cynthia Lummis pitched the BITCOIN Act, proposing a US reserve specifically for Bitcoin. More than half of the states have fielded proposals to create similar reserves at a state-level.
However, progress has been uneven. Five states already rejected crypto reserve plans, and creating a federal crypto stockpile would presumably require Congressional approval, a lengthy and uncertain process. The market currently rates the probability of a national Bitcoin stockpile relatively low due to challenges including confusing messaging and legal hurdles. Any positive surprise in this regard would be bullish for the Bitcoin price.
The White House intends to reveal more details about the plans during a crypto summit. It is suggested 