Trump Bitcoin Reserve Proposal Sparks Market Surge BTC Hits 91k
1min read Peter Schiff, a well-known economist and crypto skeptic, has recently taken to social media to mock Donald Trump's proposal to establish a national Strategic Bitcoin Reserve. Schiff, who is a strong advocate for gold, sarcastically announced that he too is creating his own Bitcoin Reserve, but with a twist. He invited contributions to his reserve, jokingly crowdsourcing his Bitcoin holdings. However, he later clarified that his Bitcoin Reserve remains empty, and he is also developing a Digital Asset Stockpile, for which people have sent him Solana.
Schiff's behavior caught the attention of his followers, with some questioning whether his account had been hacked. He replied, "I guess you don’t get my sense of humor yet." This incident highlights the ongoing debate among supporters and critics regarding the U.S. government's foray into cryptocurrency.
Following Trump's Executive Order signing for the Bitcoin Reserve, there was a surge of enthusiasm among investors. However, a slight disappointment took over as they expected more, including massive Bitcoin buying by the government. The White House Crypto Summit also failed to mention much on the reserve, but President Trump did clarify that the U.S. will no longer liquidate BTC holdings. He criticized the previous government for selling and revealed his vision for broader crypto strategies.
Other key highlights from the Crypto Summit include the revelation of government Bitcoin holdings, which come to $17 billion. Moreover, Trump assured that no taxpayer funds would be used for the reserve. With a few more discussions on a stablecoin bill and regulation, they assured the United States would become the crypto pioneer.
Peter Schiff's criticism of the U.S. government forming a crypto reserve is not limited to humorous posts. He has also shown serious concerns about the implications of this decision, claiming that the government-backed crypto reserve would destabilize the U.S. dollar. With that, he emphasized gold’s dominance as the superior store of value. If Bitcoin’s success depends on the failure of the U.S. dollar, then this move only accelerates the dollar’s decline. Gold, not Bitcoin, will ultimately be the real winner.
Interestingly, the crypto market’s reactions to Trump’s comments on the industry discard all this skepticism. The recent news about Trump is the best example, as the BTC price hit $91k after weeks of consolidations. Investors now await further updates on Crypto Reserve and anticipate a positive market impact.
