Investor hopes that the U.S. will create a strategic Bitcoin (BTC) reserve are sinking now that Donald Trump has been sworn in as America’s president.
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Establishing a strategic Bitcoin reserve was one of the main promises Trump made during his 2024 election campaign. However, Trump made no mention of the Bitcoin reserve during his inauguration speech, and it was not included in the day-one executive orders he signed.
Arthur Hayes, the chief investment officer (CIO) of crypto venture capital firm Maelstrom, says he doubts Trump’s government will create a strategic Bitcoin reserve. “I don’t think Trump will get around to doing a Bitcoin reserve,” said Hayes in an interview. “At the end of the day, I don’t know how borrowing money to buy Bitcoin helps on any of Trump’s platforms.”
Odds Decline
On Polymarket, the betting odds of a strategic Bitcoin reserve being created during Trump’s first 100 days in office has dropped to 45% from 60% prior to the presidential inauguration. At the same time, a report showing Republican congressional priorities makes no mention of cryptocurrency.
Crypto investors had high hopes for a strategic Bitcoin reserve as it would require the U.S. government to purchase large sums of the cryptocurrency, pushing its price higher as a result. But those hopes now appear to be fading as the reality of a second Trump term sets in.
Bitcoin’s price has fallen from an all-time high over the last 24 hours to currently trade at $103,300.
Is BTC a Buy?
Most Wall Street firms don’t offer ratings or price targets on Bitcoin, so we’ll look at the cryptocurrency’s three-month performance instead. As one can see in the chart below, the price of BTC has risen 54.11% in the last 12 weeks.
