Establishing a strategic cryptocurrency reserve in the United States could potentially elevate Bitcoin’s (BTC) market capitalization by around 25%, translating to roughly $460 billion, as detailed in an analysis by Sygnum Bank shared with Cointelegraph.
Plans put forth by US President Donald Trump for a national crypto stockpile, in conjunction with similar initiatives proposed across numerous US states, may instigate a multibillion-dollar buying frenzy that could drive Bitcoin’s price up by a factor of 20, according to the reports from Sygnum, a crypto asset management firm.
“Given the relatively low liquid supply of Bitcoin, larger inflows tend to induce upward price shocks,” stated Katalin Tischhauser, the head of research at Sygnum, in an interview with Cointelegraph.
Tischhauser further explained that federal or state government purchases of Bitcoin would likely spark another wave of investments from institutional investors, and possibly other national governments as well.
Current institutional capital flows are already producing a “multiplier effect” on BTC’s spot price, with every $1 billion of net inflows into spot exchange-traded funds (ETFs) resulting in an approximate 3-6% shift in price, according to Sygnum’s Crypto Market Outlook 2025 report.
Institutional inflows are a key driver of Bitcoin’s price. Source: Sygnum Bank
Proposed Crypto Reserve
On March 2, Trump reaffirmed his dedication to creating a US crypto stockpile that would include Bitcoin, as well as altcoins like Ether (ETH) and Solana (SOL), among others.
Following Trump’s announcements, crypto markets initially surged but later receded due to macroeconomic concerns and the threat of a trade war coming to the forefront.
Trump has been a proponent of a national crypto reserve since July 2024, when US Senator Cynthia Lummis introduced the BITCOIN Act, which advocated for a US reserve specifically dedicated to Bitcoin. Over half of US states have considered proposals to establish similar reserves at the state level.
Proposed Bitcoin reserve bills by state. Source: VanEck
Nonetheless, advancements have been inconsistent. Five states have already declined crypto reserve plans, according to Tischhauser. Moreover, establishing a federal crypto stockpile would likely necessitate Congressional approval, a process that is both lengthy and uncertain.
“The market currently assesses the chances of a national Bitcoin stockpile as relatively low,” noted Katalin Tischhauser, Sygnum’s research head, in conversation with Cointelegraph. “This is due to several challenges, including unclear communication and legal obstacles.”
“Any unexpected positive development would certainly be bullish for Bitcoin’s price,” Tischhauser remarked.
According to US Commerce Secretary Howard Lutnick, more details about the initiative are expected to be revealed at a crypto summit scheduled for March 7.
He indicated that Bitcoin would hold a special position within the US crypto reserve, which would also encompass ETH, Solana, XRP (XRP), and Cardano (ADA).
“The level of support from the administration is undoubtedly bullish; however, referring to it as a strategic reserve has led to considerable confusion,” Tischhauser commented.
“With the inclusion of other tokens, it suggests a proposed direct investment by the US government in the industry.”
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