Source: The Time of India
President Donald Trump gave the details of the US Bitcoin strategic reserve prediction, which prompted the cryptocurrency market to re-unite after a week of ups and downs. Whatever Donald Trump commented on the cryptocurrency reserve on Twitter created excitement in the industry. The question is what the United States Strategic Crypto Reserve would look like and how it would impact the digital currency space.
An Overview Of The US Bitcoin Strategic Reserve Prediction By Donald Trump
President Donald Trump’s promise to create the US Bitcoin strategic reserve has stirred the crypto industry. As designed and as thought, the crypto reserve would be the hold of the federal government just like the reserve of gold and foreign currencies.
The last time in the 2024 Bitcoin Conference, the president put forth the idea of creating the United States Strategic Crypto Reserve. There in the conference, he promised to deregulate the crypto industry and discharge Gary Gensler from the so-called designation U.S. Securities and Exchange Commission Chairman. This prediction and his commitment helped him to gather a huge fund for his campaign from the crypto community. At the same time, U.S. Senator Cynthia Lummis, a Republican from Wyoming, announced to the public that she would create a Bitcoin reserve. But, no action was taken, however, the bill was referred to the Committee on Banking, Housing and Urban Affairs.
On 2nd March 2025, he posted on Truth Social that the United States Strategic Crypto Reserve would be the government-managed fund. This will help to strengthen the US economy and elevate the critical industries after years. He also described such industries as “corrupt attacks” by former President Joe Biden’s administration.
Announcement By Donald Trump on 2nd March 2025
United States President Donald Trump on Sunday announced his government would create a US bitcoin strategic reserve including five primary cryptocurrencies, making the US “the crypto capital of the world”. Following this announcement on Sunday, the Bitcoin price soared. He also criticised the Biden-era policies and called them “corrupt”.
A sudden rise and a sudden fall in the Bitcoin Value
Bitcoin price kept on the declined value till Tuesday, trading at an overall $83,900 and having been erased with all its weekend gains. Initially, the bitcoin price declined to an overall 8% on Monday and had a closing value of $86,220. After that, the price remained below $84,000 for the whole day.
How Would The US Government Manage The Things?
The United States is already has a pile of around 200,000 bitcoin. The US can get into the market and can directly purchase more assets like Bitcoin or follow Trump’s prediction or what he has been highlighting.
Undoubtedly, the US would be the largest buyer of cryptocurrency and would be an active participant in the crypto market. But, things are how Trump’s government would manage all this. Till now, crypto observers have predicted that the reserve would be like the gold reserve, which is held by the national government or bank and can be used as an economic security against inflation or in times of uncertainty. The same applies in the case of oil stockpiles, that is, typically handled by the government as a buffer against energy and economic disruption.
The United States Strategic Crypto Reserve And Its Purpose
As per the prediction of Donald Trump concerning the United States Strategic Crypto Reserve - the purpose is said to preserve the wealth of countries - against economic uncertainty.
Before Donald Trump’s Sunday announcement, the crypto market was showing signs of cooling off after the months of Trump’s reelection. On Friday, the Bitcoin price hit the lowest in the last three months. After Trump’s announcement, the value spiked and reached $94,000 within hours after he made a post on Sunday. Moreover, Economist Peter Schiff called for a Congressional investigation into President Trump’s Truth Social posts, claiming on X post on Tuesday that Trump’s post on Truth Social helped to pull off the Bitcoin value and a fluctuation, in which there was nothing worth seeing.
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