On Sunday, March 9, Jeff Park, Bitwise’s Head of Alpha Strategies, stated that US President Donald Trump is likely to pause any further Bitcoin purchases until the price approaches $60,000. Sharing insights on his official X account, Park made his comments amidst escalating speculation about potential “budget-neutral” strategies the administration might consider to acquire more BTC for the newly established US Strategic Bitcoin Reserve.
Why Trump Requires Bitcoin to Decline First
On March 6, 2025, President Trump signed an Executive Order establishing the Strategic Bitcoin Reserve, aimed at ensuring the United States retains a pivotal role in the realm of digital assets. The administration disclosed control over approximately 200,000 BTC, valued at around $17 billion at current market rates, primarily obtained through criminal and civil asset forfeiture—subject to an audit. Although the Executive Order prohibits selling Bitcoin within the reserve, it directs the Treasury and Commerce Secretaries to explore “budget-neutral” methods for future BTC acquisitions, ensuring no additional burden on taxpayers.
Park’s analysis goes beyond conventional market commentary, honing in on the political dynamics that he believes significantly affect presidential decisions regarding Bitcoin purchases. In one of his posts, Park notes: “Here’s a little secret from my primary experience: public officials rarely buy Bitcoin based on trends or momentum, especially not at the peaks. The rationale is straightforward—they aim to avoid dismissal during inevitable market downturns or diminish their reputations publicly.”
He continues by pointing out that political figures, especially those under intense scrutiny like the US President, operate under an asymmetric risk profile. The repercussions of purchasing at elevated prices, only to face a market correction, can be detrimental to their public image. Park suggests that when BTC drops to more appealing levels, the incentives for officials to invest markedly improve.
“Can you picture the headlines if Trump buys Bitcoin at $100k and it plummets to $70k? Conversely, if BTC dips significantly, the motivation for politicians and sovereigns to buy increases… It’s always favorable for the incentive calculations of an executive branch (which must secure elections) to wait for BTC to reach $60k before acquiring it and claiming credit,” he explains.
Park emphasizes that while the Strategic Reserve is intended for long-term value retention, public officials are keen to avoid backlash stemming from sudden price decreases. He argues that this political pressure discourages them from taking “high-risk” actions—particularly those that could lead to accountability issues.
The newly instituted Strategic Bitcoin Reserve, often characterized by the administration as a “digital Fort Knox,” is deliberately designed to remain untouched for the long term. David Sacks, the White House Crypto and AI Czar, has described it as “a 21st-century shield of national financial security,” highlighting the administration’s ambitions for American leadership in cryptocurrency.
However, Park contends that specific conditions need to be fulfilled for a reserve initiative to gain real traction. Key among these are “programmatic purchasing versus discretionary ‘studies,’” collaborative decision-making (to share accountability), and a degree of permanence—either through legislative measures or actions taken discreetly.
Park’s respect for public pension Chief Investment Officers who have proactively invested in Bitcoin underscores the differing timelines involved in decision-making: “This is why I hold great RESPECT for public pension CIOs who have acquired BTC or engaged in crypto strategies. They exemplify true patriotism—dedicated to long-term thinking for the collective good over potential personal loss. Heroes.”
This commendation highlights how these executives, unlike politicians focused on re-election or sensitive to public opinion, typically have more freedom to invest for the long term, provided they adhere to fiduciary guidelines.
As of now, BTC is trading at $82,389.
Featured image created with DALL.E, chart from TradingView.com
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