The newly elected President of the United States, Donald Trump, has made his presence known. President Trump announced he had directed a working group to move ahead with a Crypto Strategic Reserve – a very bullish signal for market participants. In his first days in office, President Trump made numerous policy changes, enacted several executive orders and has the country buzzing with news and updates from the Department of Government Efficiency, or DOGE. Tech-wunderkind Elon Musk heads DOGE and aims to "dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditure, and restructure Federal Agencies – Essential to the "Save America" Movement." The almost daily revelations of the extent of the mismanagement of taxpayer money are serving Trump well, as the transparent sharing of this information with US citizens allows the average American to see and witness the chaos that went on under previous administrations. Trump's initial moves in the infancy of his term have certainly garnered him some new support, and his continued commitment to other campaign promises also goes a long way in improving his approval rating. Trump's Proposed National Strategic Reserve of Cryptocurrencies On Sunday, March 3, President Trump announced on Truth Social that "a U.S. Crypto Reserve will elevate this critical industry." Trump also announced that he has "directed a Presidential Working Group to move forward on a Crypto Strategic Reserve." According to Trump's announcement, the "… Reserve that includes Ripple (XRP), Solana (SOL), and Cardano (ADA). " The Reserve will also include Bitcoin (BTC) and ether (ETH), according to President Trump's executive order on digital assets in January 2025. Bitcoin (BTC) Will Likely Make Up Entire Reserve According to Bitwise CEO Matt Hougan, investment chief at Bitwise, recently said that while Trump's Crypto Reserve Announcement is bullish, Hougan cautioned that the market is "misreading things." Hougan explained his views thoroughly in a March 5 market note . The Bitwise bigshot said while President Trump did include several large-cap altcoins such as XRP, ETH, SOL, and ADA, the President's planned Reserve may eventually mainly consist of "entirely Bitcoin." In his market note, Hougan elucidates. "Market participants have soured on the announcement because the proposed reserve holds more than Bitcoin." Adding; "The inclusion of small-cap assets in the announcement unnecessarily complicated matters." Bitcoin (BTC) and Ether (ETH) Would Be The "Heart of the Reserve" President Trump's initial announcement said the Reserve would include Solana (SOL), Ripple (XRP), and Cardano (ADA). The President later added that BTC and ETH would be "the heart" of the crypto reserve. In his clearly and well-set-out memorandum, or market note, Hougan explains that the first proposal is never the final proposal. Hougan predicts that the big names in the industry will have something to say about the Reserve, and it might receive some industry pushback. Hougan opines the "boldness of the initial proposal has widened the Overton window for what the reserve can be." He continues by asserting, "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. Hougan poignantly rests people assure by saying: "In the end, this is bullish." Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
