Last weekend, President Trump unveiled a plan to establish a strategic cryptocurrency reserve for the United States, which initially helped cryptocurrency markets surge. However, the enthusiasm was short-lived, as the hype faded.
Despite the market’s growing skepticism, asset management firm Bitwise issued a research note asserting that the initiative will ultimately remain a development for the cryptocurrency sector.
The initial market rally followed Trump’s announcement, but sentiment soured as details emerged that the reserve would not be solely focused on Bitcoin but would also encompass a range of cryptocurrencies.
This broader approach appeared to unsettle some investors, according to Bitwise. “The inclusion of speculative assets like Cardano feels more calculating than strategic,” wrote Matt Hougan, Bitwise’s chief investment officer, in the report. He suggested that the market’s negative reaction to what he termed a “flawed rollout” was ultimately misplaced as Trump’s “initial proposal is rarely his final.”
Bitwise anticipates that the U.S. Strategic Crypto Reserves will be larger in scale than current market expectations foresee and will likely consist mostly of BTC. The report added that if the U.S. fails to create such a reserve, other countries will likely move forward.
“The U.S. government declaring crypto assets ‘strategic’ is bullish,” the report concluded, adding that the market will eventually price in that conclusion as well.
National Crypto Strategic Reserve Initiatives Grow
Beyond the United States, several countries have been pushing for their institutions to hold Bitcoin and other cryptocurrencies on their balance sheets. In Switzerland, for example, a citizen-led initiative is looking to get the Swiss National Bank to hold both BTC and gold.
Russia is also reportedly exploring cryptocurrency reserves, mainly as a tool to circumvent Western sanctions and help stabilize its economy.
Another notable example is the Czech National Bank, whose governor has ordered the organization to evaluate whether BTC can diversify its foreign exchange reserves.
