President Donald Trump of the United States has signed an executive order aimed at creating a strategic reserve for bitcoin, along with a stockpile of other cryptocurrencies. This move follows a campaign promise, and some believe it could lead to a significant increase in bitcoin prices.
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Following the announcement of the executive order, bitcoin prices saw a decline as traders expressed dissatisfaction with the fact that it does not obligate the U.S. to purchase more bitcoin or cryptocurrencies, compounded by a “foolish” warning on crypto prices from Elon Musk.
As the bitcoin and cryptocurrency market prepares for a potential BlackRock disruption, traders are keenly observing other nations that may quickly follow America’s lead in bitcoin investments. One analyst has even predicted a staggering $10 trillion bitcoin market capitalization by 2028.
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President Donald Trump has enacted several executive orders, including one to set up a … [+]
“This is remarkable execution from the Trump administration and marks a historic moment for bitcoin and cryptocurrency,” tweeted Brian Armstrong, CEO of Coinbase. “I anticipate many G20 nations will take notice and eventually follow America’s leadership strategy.”
The bitcoin reserve “will comprise bitcoin held by the federal government that has been forfeited through criminal or civil asset seizure proceedings,” Trump’s crypto czar David Sacks stated on X, including a video where he referred to the reserve as a “digital Fort Knox” while assuring it “won’t cost taxpayers anything.”
Speculations are rising that China is contemplating establishing its bitcoin reserve to compete with the U.S. This interest follows last month’s news that Abu Dhabi’s sovereign wealth fund has begun investing in bitcoin, igniting a global adoption “race.”
“There are rumors suggesting that China and South Korea are looking into their own bitcoin strategic reserves,” stated Danny Scott, CEO of the cryptocurrency platform CoinCorner, in an email. “It’s clear that countries worldwide will be observing closely, preparing to make their moves,” adding: “A global shift is imminent.”
Trump’s executive order to create a bitcoin reserve comes on the heels of an announcement that the U.S. will build a diverse cryptocurrency stockpile, prompting market excitement and being labeled a “game-changer.”
“This announcement this week—despite its imperfections—marks the first instance the U.S. has indicated that bitcoin is a strategic asset,” wrote Bitwise’s Chief Investment Officer Matt Hougan in a blog post. “As long as this principle holds, it feels like a significant turning point to me.”
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The price of bitcoin surged after Donald Trump was elected, although the price has since … [+]
Hougan suggested that other nations might be observing the U.S. and considering the establishment of their own bitcoin reserves.
“For countries like Honduras, Mexico, or Guatemala, observing El Salvador and now the U.S. acquiring bitcoin, can they really afford to remain at zero?” Hougan posed. “Are the leaders of Dubai, Qatar, or Saudi Arabia comfortable with Abu Dhabi and the U.S. taking the initiative? And how will Russia and China react?”
The anticipation of a global move towards bitcoin adoption has heightened expectations for more explicit crypto regulations in the U.S. during the Trump administration.
“This could enhance medium-term optimism, suggesting bitcoin might reach $200,000 this year, and possibly $500,000 before Trump’s term concludes,” commented Geoffrey Kendrick from Standard Chartered Bank to CNBC, which would place bitcoin’s market cap around $10 trillion.
