Trump Crypto Reserve: Will Bitcoin Dominate the U.S. Reserve?

Trump Crypto Reserve: What the Market Missed About Bitcoin’s Role

Trump Crypto Reserve – Despite initially including several large-market cap altcoins, Bitwise Chief Investment Officer Matt Hougan predicts that US President Donald Trump’s planned crypto reserve will ultimately consist almost entirely of Bitcoin (BTC). In a market note on March 5, Hougan stated that the inclusion of small-cap assets like Solana (SOL), XRP (XRP), and Cardano (ADA) in Trump’s reserve announcement had complicated the matter unnecessarily, leading market participants to sour on the idea.

Initial Announcement and Market Reactions

On March 2, Trump initially proposed a reserve that would include Solana, XRP, Cardano, along with Bitcoin and Ethereum (ETH) as the “heart” of the reserve. However, Hougan believes that, in the end, Bitcoin will dominate the reserve, and it will be larger than what many expect. The news of Bitcoin’s inclusion briefly pushed its price above $91,000, but it later dropped below $83,000 before recovering to above $90,000, partially due to Trump’s decision to delay auto parts tariffs on Canada and Mexico.

Bitcoin’s Central Role in the Reserve

Despite the early market uncertainty, Hougan remains optimistic, arguing that Trump’s initial proposals are rarely his final stance. He suggests that Bitcoin could eventually hold special status in the reserve, with other crypto tokens treated differently. He pointed to Commerce Secretary Howard Lutnick’s comments, hinting that Bitcoin might receive preferential treatment compared to other tokens.

Implications for Global Crypto Markets

Hougan also believes that if the US establishes a crypto reserve, other countries may follow suit, potentially seeking their own share of Bitcoin. He speculates that even if a Democratic administration follows Trump, the US is unlikely to sell any crypto acquired, similar to how gold reserves are handled.

Ultimately, Hougan feels that the market’s initial bullish reaction is accurate, and that investors will come to see the broader potential of Bitcoin in the global financial landscape.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.