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 similar proposals being considered in dozens of regions.
Trump’s plans for a national crypto stockpile, along with similar proposals across dozens of regions, could trigger a multibillion-dollar buying spree with a 20x multiplier effect on Bitcoin’s price. This is according to Sygnum, a crypto asset manager. The liquid supply of Bitcoin is relatively small, meaning larger inflows could cause significant upward price shocks. 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 is highlighted in Sygnum’s Crypto Market Outlook 2025 report. Institutional inflows tend to drive the price for Bitcoin, and the potential for government involvement could amplify this effect.
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 surged following Trump’s announcements, but later in the week, those gains were surrendered as macroeconomic unease and a looming trade war 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 regions have fielded proposals to create similar reserves at a state-level.
However, progress has been uneven. Five regions already rejected crypto reserve plans. Meanwhile, 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 bull 