Bitwise: Market Misjudges Trump’s Strategic Crypto Reserve as Bullish Potential Grows
The final composition of the U.S. strategic crypto reserve will be predominantly bitcoin and larger than anticipated, according to a new Bitwise report.
President Trump’s announcement last weekend regarding the formation of a U.S. strategic crypto reserve remains a bullish development, despite the market’s initial reaction, asset manager Bitwise stated in a research report on Tuesday.
While crypto markets initially surged on the news, gains were quickly erased by Monday as investors reacted negatively to the specifics of the reserve’s composition.
Bitwise pointed out that the disappointment stemmed from the inclusion of multiple cryptocurrencies rather than a bitcoin-exclusive reserve. The administration initially named XRP, Solana (SOL), and Cardano (ADA) as part of the strategic reserve, later adding Bitcoin (BTC) and Ethereum (ETH) to the list.
“The inclusion of more speculative assets like Cardano appears more tactical than strategic,” wrote Matt Hougan, Chief Investment Officer at Bitwise. He noted that while the rollout of the plan may have been flawed, the market’s reaction fails to recognize its long-term potential.
The report emphasized that Trump’s initial policy proposals often evolve before implementation. As a result, the final reserve is expected to be heavily weighted toward Bitcoin and significantly larger than current market expectations.
Bitwise also suggested that if the U.S. moves forward with a strategic crypto reserve, other nations are likely to follow. Furthermore, any digital assets acquired by governments would likely be held long-term, reducing available market supply.
“The U.S. government recognizing crypto assets as ‘strategic’ is inherently bullish,” the report concluded, predicting that market sentiment will eventually shift in favor of this perspective.
