Trump's Crypto Reserve: Bitcoin to Dominate, Market Bulls Ahead
1min read US President Donald Trump's proposed crypto reserve is expected to be predominantly composed of Bitcoin, according to Bitwise Asset Management's chief investment officer, Matt Hougan. Despite initially announcing a mix of large-market cap altcoins, including Solana (SOL), XRP (XRP), and Cardano (ADA), Trump later clarified that Bitcoin (BTC) and Ether (ETH) would be the core of the reserve. Hougan believes that, after the dust settles, the final reserve will be nearly entirely Bitcoin and larger than initially expected.
Bitcoin's price initially jumped on the news of its inclusion in the slated reserve but later sank below $83,000. It has since recovered to above $90,000, partly due to Trump delaying auto parts tariffs on Canada and Mexico. Some crypto commentators have expressed concern about the inclusion of speculative assets like Cardano in the reserve, arguing that Bitcoin is the only cryptocurrency suited for inclusion. Hougan, however, believes that the market is misreading the situation and that the final reserve will be bullish for the crypto market.
Hougan expects Trump's initial proposals to change, as is often the case with his tariff policies. He anticipates that input from industry bigwigs at the upcoming White House crypto summit could alter the makeup of the reserve. Commerce Secretary Howard Lutnick has hinted that Bitcoin could receive a special status in the reserve, with other crypto tokens being treated differently but positively. There is a small possibility that pushback on the idea could see the reserve scrapped or limited to assets the government has already seized. If the US makes a crypto reserve, it is more likely that other countries will follow suit, further legitimizing the role of cryptocurrencies in global finance.
It is unlikely that the US will sell any crypto it buys, even if a Democrat replaces Trump. Any crypto acquired will be held for a very long time, like the country's gold reserves. Democratic leaders are unlikely to alienate voters by selling crypto, as there are a significant number of people who love crypto and a relatively small number who hate it. Hougan believes that the market's initial bullishness is the right one and that the market will eventually realize this.
