Bitcoin Reserve Strategy: Is Donald Trump Quietly Preparing for a Crypto Power Move?

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Following Bitcoin’s recent price jump and upcoming events like the FOMC meeting and CPI report are expected this month the market is in a mixed state. While everyone is eyeing an early announcement of Bitcoin Reserve plans, Macro expert Luke Gromen suggests President-elect Donald Trump should hold off announcing plans for a US Bitcoin reserve on his first day in office.

Speaking to venture capitalist Preston Pysh, Gromen explained that revealing such a plan too soon could lead investors to front-run the government, driving Bitcoin prices higher before the US secures a position. According to Trump, this strategy will help them to stay ahead in creating a crypto powerhouse before China and other nations take over this trillion-dollar industry. 

Instead, Gromen advises Trump to quietly accumulate Bitcoin while expressing optimism for the asset. Once the reserve is built, Donald Trump could announce it publically, sparking a huge rally that boosts government holdings. 

In the current scenario, the Bitcoin reserve strategy is only a passing ball for political parties rather than a realistic plan, especially after the Fed’s negative comments on Bitcoin accumulation by the US govt. However, the market is expecting that Trump will push his policies aggressively after taking charge in the White House even if they meet political resistance. 

Polymarket Poll Sparks Bitcoin Reserve Speculation

A recent poll shows that 40% of people think President-elect Donald Trump might start a national Bitcoin reserve, which could mark a big change in how the U.S. views digital money. Many believe Trump’s administration might support Bitcoin as a key asset, especially since he’s spoken positively about it before. Supporters say this move could make the U.S. stronger financially and a bigger player in the global crypto market.

Challenges and Global Context

Trump, a former Bitcoin critic turned supporter, has indicated a pro-crypto stance, suggesting the US hold seized 200,000 Bitcoins as an investment and even hinting at using crypto to address the national debt. Moreover, experts suggest keeping these assets could stabilize Bitcoin’s price.

But, proposals like Senator Cynthia Lummis’s plan to buy one million Bitcoins face political resistance due to legal and security concerns. Some critics highlight Bitcoin’s price volatility and hacking risks as significant barriers. While countries like Bhutan and El Salvador have adopted Bitcoin on smaller scales, the U.S. could set a global trend if it formalizes a Bitcoin reserve. 

Bitcoin currently trades at $99,147. Bitcoin is in recovery mode from its recent losses and is expected to go much higher if it clears its resistance level of $100K.