U.S. President Donald Trump’s crypto reserve plan has rattled the market, with many questioning why Bitcoin isn’t the sole focus. According to Bitwise investment chief Matt Hougan, “Market participants have soured on the announcement because the proposed reserve holds more than Bitcoin.” Trump initially said the reserve would include Solana (SOL-USD), XRP (XRP-USD), and Cardano (ADA-USD) before later clarifying that Bitcoin and Ethereum would be its “heart.” However, Hougan believes that “after the dust settles, the final reserve will be nearly entirely Bitcoin, and it will be larger than people think.”
Bitcoin’s Price Swings as Investors Scramble to Make Sense of Plan
Bitcoin initially surged on Trump’s announcement before dropping below $83,000, only to recover above $90,000. Some investors expected a Bitcoin-only reserve, with Coinbase (COIN) CEO Brian Armstrong calling Bitcoin a “successor to gold” and criticizing the inclusion of altcoins. Hougan, however, argued that the market is “misreading things” and that despite a messy rollout, “this is bullish.”
Global Bitcoin Demand Could Skyrocket
With the U.S. now treating Bitcoin as a strategic asset, Commerce Secretary Howard Lutnick hinted that Bitcoin could receive special status. Hougan noted that if the U.S. moves forward, “other countries will look at wanting their own slice of Bitcoin.” The crypto market may be shaken now, but the long-term impact could be historic.
At the time of writing, Bitcoin is sitting at $90,726.37.
