Despite no announcement of a Bitcoin reserve, we are more confident a Bitcoin reserve or altcoin reserve will happen than we were yesterday
In this article, we look at some of the reasons why we expect a reserve and what it could look like. Could it be Bitcoin only? Or up to even 8-10 alts? Or even 17-20? Let’s find out more about this crypto reserve.
The first question before even getting to a crypto reserve is can there/will there be a Bitcoin reserve? Rumors were flying that it would be among the first large set of Executive Orders once Trump takes office midday Monday. Some of those rumors include the Strategic Bitcoin Reserve (SBR) in a leaked copy of the Inauguration speech. But it wasn’t.
We still expect a Bitcoin reserve and now even more than yesterday when Trump resumed office. Why? Because Trump always does what helps Trump first. And Trump’s World Liberty bought $47 million in wBTC yesterday. wBTC is not Bitcoin. But I have full confidence this purchase is to frontrun the US announcement of a Bitcoin reserve. It would moon the price of Bitcoin and the wrapped products like wBTC.
A Bitcoin reserve is a smart idea. Bitcoin is the only money powerful enough to dethrone the US Dollar as the reserve currency. We often talk about how weak the dollar is but depending on where you live, you probably know other currencies are even weaker than the dollar. Except for Bitcoin. A US Gov’t reserve of Bitcoin would preserve the USD’s place and possibly prevent other countries from having a reserve big enough to dethrone the dollar.
So it does have important political and economic implications. A crypto reserve would HAVE to have Bitcoin in it. But does it need other cryptos in it? Not really is the short answer. But Trump has shown (he and his team) a real interest in crypto. Now we know he’s in it for the grift. But still, his $WLFI project is on Ethereum and it holds 6 cryptos including ETH, AAVE, wBTC, and Chainlink.
He clearly intends to be a pro-DeFi President at the least. He’s not going to create more rules to make it difficult for himself to make money. That’s for certain. The recent purchases on ENS for the .eth for World Liberty, Eric Trump, and youngest son Barron Trump further confirm that DeFi is definitely on the World Liberty team’s minds. Do you have a favorite DeFi project right now? Let us know in the comments below.
You may have seen that Trump is considering a proposal to make profits from US-based crypto projects tax-free. Not coincidentally, the $TRUMP memecoin is a US-based project. So guess who would not have to pay taxes if this policy comes to life? Trump himself. But we know Trump is in it for Trump. But in this case, many of you watching would benefit too.
So who are the American-based projects that are big enough for a crypto reserve? The first place to start is with ETFs and Grayscale. Grayscale has a lot of funds. The projects that are American and have a Grayscale Trust include:
Any one of these could become part of a reserve. Of this list, the most likely candidates are XRP, Litecoin, Chainlink, Solana, and Sui. In anticipation of this potential move on taxes and/or the reserve, our friends at CoinGecko even made a “Made in the USA” category to follow. It includes:
And of this list, any of them could be included as part of a reserve.
Option 1 is no reserve. I think this is about a 25% chance of happening. Trump is highlighting crypto so much that the chance of no reserve is declining daily. But it could still happen.
Option 2 would be a 100% Bitcoin reserve. That’s very possible given the reasons mentioned already. Plus, when $TRUMP started declining in value after the $MELANIA token launch, we saw an increase in the price of Bitcoin. So already, even the newbies were learning to take their memecoin profits and rotate them into Bitcoin. That’s a good start. I think this is the most likely scenario too.
Then we have Option 3. This is a diversified crypto reserve of 8-10 holdings. If this happens, I would expect to see:
And possibly some wBTC or Coinbase’s cbBTC as a US-based crypto company. Finally, because Trump can’t resist the grift, it would not surprise us here at Altcoin Buzz if he added the $TRUMP coin to the US Reserve forcing the US Government to buy his coin. And if its current value stays at over $1 billion, he might be able to get away with calling it a large-cap, popular project.
What do you think the ultimate crypto reserve for the US Government should look like?
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
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🚨JUST IN: Trump's @worldlibertyfi is buying over $50M+ in crypto In the last hour or so they've purchased: $4.7M $LINK $4.7M $AAVE $4.7M $TRX $4.7M $ENA 3x $4.7M $WBTC 4x $4.7M $ETH @EricTrump did hint yesterday that WLFI would be making moves today! 👀 Source: Arkham
