Bitcoin and various cryptocurrency prices—including ethereum, Ripple’s XRP, solana’s SOL, and cardano’s ADA—have stabilized over the past week following Donald Trump’s announcement regarding the cryptocurrencies favored by the U.S., leading to significant market fluctuations.
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The bitcoin price has reverted to approximately $85,000 per coin, mirroring its position from the start of March (despite China discreetly preparing for a significant bitcoin price event).
As Elon Musk unexpectedly issues a warning regarding crypto prices, Trump’s crypto czar has announced that the U.S. Treasury will strive to “maximize the value” of the bitcoin and other cryptocurrencies held within the U.S. reserve and crypto stockpile.
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President Donald Trump has expressed his intention to position the U.S. as the global bitcoin “superpower,” as the … [+]
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“We’re planning to transfer the [cryptocurrency owned by the U.S. government] into the digital stockpile,” stated David Sacks, a tech investor and entrepreneur who has joined the Trump administration as the cryptocurrency czar, on an episode of the All In Podcast he co-hosted prior to assuming the role.
“The aim of the stockpile is to ensure responsible management; it serves as a secure location, a centralized account overseen by the secretary of the Treasury, who will determine how to maximize the value of these assets.”
This week, following Trump’s unexpected announcement that Ripple’s XRP, solana, and cardano would be foundational to a U.S. crypto reserve, the White House has adjusted its plans to establish a bitcoin-only strategic reserve alongside a crypto stockpile including smaller cryptocurrencies like ethereum, Ripple’s XRP, cardano, and solana.
“The crypto stockpile should be managed with sound portfolio principles, and we are fortunate to have a Treasury secretary who is an exceptionally accomplished former hedge fund manager, so he’s going to determine the best management strategies for these assets,” Sacks remarked.
During the much-anticipated White House crypto summit this week, alongside Sacks and Treasury Secretary Scott Bessent, Trump reaffirmed his support for bitcoin—placing it uniquely above other cryptocurrencies and likening it to a “digital Fort Knox,” a nod to the U.S. gold reserve.
“I vowed to make America the premier bitcoin superpower globally and the crypto capital of the world,” Trump reportedly stated, as covered by the New York Times. “We’re taking historic steps to fulfill that commitment.”
In July, during an appearance at the Bitcoin 2024 conference, then-Republican candidate Trump committed to establishing a “strategic national bitcoin reserve,” predicting that bitcoin could surpass gold’s nearly $20 trillion market capitalization.
During Friday’s White House summit, Trump criticized the past government decision to sell off a large portion of its seized bitcoin as “foolish,” while Sacks noted on the podcast that the U.S. might have lost up to $16 billion by liquidating its bitcoin holdings.
“At one time, we held about 400,000 bitcoin on the federal balance sheet. We sold roughly half for about $360 million in total,” Sacks disclosed during the podcast. “If we had retained all of that, the portion we sold would now be worth over $17 billion.”
Before the summit, Trump signed an executive order advocating for the creation of the bitcoin reserve and crypto stockpile using current government holdings. However, this move disappointed traders as it did not include new bitcoin or crypto acquisitions, while still leaving open the possibility of acquiring more bitcoin through “budget neutral” methods that “do not impose additional costs on U.S. taxpayers.”
Sacks mentioned during a press conference that the Treasury and Commerce departments, headed by bitcoin price enthusiast Howard Lutnick, are only “permitted to acquire more if it does not increase the deficit or the debt.”
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“The lackluster strategic bitcoin reserve initiative sparked uncertainty within the crypto market,” Agne Linge, head of growth at the crypto platform WeFi, stated in an email comment.
“With the executive order directing agencies to accumulate seized bitcoin for the reserve, crypto investors may view the move as misleading, given that no plans for new bitcoin purchases were disclosed. Despite the immediate negative reaction from investors, the reality is that the bitcoin reserve directive allows for acquiring bitcoin without imposing costs on taxpayers. Potential methods for these acquisitions may include bitcoin bonds and selling off gold reserves to facilitate further purchases. In the long run, the bitcoin reserve adjustment could prove beneficial for the currency. This perspective relies on the prospect that it could stimulate other countries to embark on similar paths.”
Some analysts speculate that China is considering the establishment of its own bitcoin reserve to compete with the U.S., especially after Abu Dhabi’s sovereign wealth fund disclosed last month its investments in bitcoin, initiating a global adoption “race.”
“The establishment of a U.S. bitcoin reserve increases the likelihood of other nations following suit and quickens their deliberations on similar initiatives,” analysts from Tagus Capital opined in an email.
“With the U.S. intending to adopt bitcoin reserves, this development is bound to foster broader global adoption, encouraging more nations to integrate bitcoin into their reserves—potentially transitioning from gold to digital assets, similar to how some economies have embraced the U.S. dollar in place of or alongside their local currencies.”
