Trump’s Crypto Reserve: Is Bitcoin the Only Thing That Matters? 🤔💰

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In a universe not so far away, the newly elected President of the United States, Donald Trump, has decided to make his presence felt in a manner that can only be described as “trumpet-like.” With the subtlety of a marching band in a library, he announced the formation of a working group to create a Crypto Strategic Reserve. This, dear reader, is a bullish signal for market participants, or at least for those who enjoy the thrill of watching digital coins bounce around like hyperactive kangaroos.

In the early days of his presidency, Trump has been busier than a one-armed wallpaper hanger, enacting a plethora of executive orders and policy changes that have the country buzzing like a caffeinated bee. The Department of Government Efficiency, or DOGE (yes, you read that right), is headed by none other than tech-wunderkind Elon Musk, who aims to “dismantle Government Bureaucracy” and other such lofty goals. Meanwhile, the revelations of taxpayer money mismanagement are serving Trump well, allowing the average American to witness the chaos of previous administrations like a reality show gone horribly wrong.

Trump’s initial moves have certainly garnered him some new support, and his commitment to other campaign promises is like a warm hug for his approval rating. Who knew politics could be so cozy?

Trump’s Proposed National Strategic Reserve of Cryptocurrencies

On a fateful Sunday, March 3, President Trump took to Truth Social (because where else would he announce such monumental news?) to declare that “a U.S. Crypto Reserve will elevate this critical industry.” He also mentioned that he has “directed a Presidential Working Group to move forward on a Crypto Strategic Reserve.” This reserve, according to Trump, will include Ripple (XRP), Solana (SOL), and Cardano (ADA), along with the ever-popular Bitcoin (BTC) and ether (ETH). Because why not throw in a few extra coins for good measure?

Bitcoin (BTC) Will Likely Make Up Entire Reserve According to Bitwise CEO

Enter Matt Hougan, the investment chief at Bitwise, who recently stated that while Trump’s Crypto Reserve Announcement is bullish, the market is “misreading things.” This is akin to saying that a cat is misreading a laser pointer—it’s all very confusing.

In a market note that could rival a Shakespearean soliloquy, Hougan explained that while Trump included several large-cap altcoins, the Reserve may eventually consist mainly of “entirely Bitcoin.” Because, of course, why complicate things with too many options?

In his market note, Hougan elucidates:

“Market participants have soured on the announcement because the proposed reserve holds more than Bitcoin.”

He added, with the flair of a seasoned bard:

“The inclusion of small-cap assets in the announcement unnecessarily complicated matters.”

Bitcoin (BTC) and Ether (ETH) Would Be The “Heart of the Reserve”

Initially, Trump stated that the Reserve would include Solana (SOL), Ripple (XRP), and Cardano (ADA). But then, in a plot twist worthy of a daytime soap opera, he declared that BTC and ETH would be “the heart” of the crypto reserve. Because, of course, every good reserve needs a heart—preferably one that beats in Bitcoin.

In his clearly and well-set-out memorandum, or market note, Hougan explains that the first proposal is never the final proposal. He predicts that the big names in the industry will have something to say about the Reserve, and it might receive some industry pushback. After all, who doesn’t love a good debate over digital currency?

He continues, asserting with the confidence of a man who just found a dollar in his pocket:

“Until Sunday, the very idea of a strategic crypto reserve seemed unlikely. Now, a bitcoin-only reserve sounds almost conservative.”

After the dust settles, I suspect the final Reserve will be nearly entirely bitcoin, and it will be larger than people think.”

Hougan further argues that despite industry leaders’ worries over a Bitcoin-only reserve, it is nothing of concern. In fact, he reassures us all with the wisdom of a sage:

“In the end, this is bullish.”

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2025-03-06 11:25