Is Trump’s National Crypto Policy Leading the US to a $20B Bitcoin Reserve?
BTC
SILKROAD
ARKM
Key Points
- President-elect Donald Trump’s potential pro-crypto executive orders have raised expectations of a U.S. strategic Bitcoin reserve (SBR).
- Reports suggest that the incoming administration could establish a crypto council to advance the sector’s policy and interests.
Reports indicate that the crypto community is optimistic about the potential pro-crypto executive orders by President-elect Donald Trump. These orders might include the ‘freezing’ of crypto lawsuits and the establishment of a Bitcoin[BTC] reserve (SBR).
On the 17th of January, Polymarket’s odds for a U.S. SBR increased to 44%. This increase was in response to reports suggesting that the president might create a ‘national Bitcoin stockpile’ and prioritize crypto at a national level.
Market Response
According to Bloomberg, the incoming administration might establish a crypto council to advance the sector’s policy and interests. The markets reacted positively to these reports, with SBR odds peaking at 44% for the first time in January. However, the odds have since slightly decreased to 41%.
On another prediction site, Kalshi, the odds for an SBR creation this year increased to 64%. Other Bitcoin bulls, such as crypto investor Fred Krueger, are also confident about a likely U.S. SBR by next week. Over the past two weeks, Polymarket odds have doubled from a low of 22% to a recent peak of 44%.
U.S. Senator’s Remarks
Pro-Bitcoin U.S. Senator Cynthia Lummis has questioned the U.S. Government’s plans to sell 70K BTC retrieved from Silk Road. She indicated that the sale of these Bitcoins would represent a loss of more than $18.5 billion in unrealized value for American taxpayers.
The incoming administration had planned to use part of this BTC to set up the SBR. According to Arkham data, 69,000 Silk Road BTC coins remain unmoved despite the recent approval for sale. Overall, the U.S. government still holds 198K BTC, worth over $20B. These could be repurposed to an SBR if not sold before the new regime resumes office.
