6-3-2025 – The cryptocurrency sphere is abuzz with anticipation as President Donald Trump’s administration contemplates establishing a crypto reserve, with industry leaders weighing in on the potential composition and implications of such a landmark initiative.
Whilst initial reports indicated that various high-capitalisation alternative cryptocurrencies might be included, Bitwise Chief Investment Officer Matt Hougan has boldly predicted that Bitcoin will emerge as the dominant asset within any eventual reserve. In his 5th March market commentary, Hougan suggested that concerns about the inclusion of smaller cryptocurrencies have unnecessarily muddied the waters.
“After the dust settles, I suspect the final reserve will be nearly entirely Bitcoin, and it will be larger than people think,” Hougan remarked, expressing confidence that the market will eventually recognise the significance of the US government designating crypto assets as “strategic”.
The notion of a US Crypto Strategic Reserve has garnered mixed reactions from prominent industry executives. Coinbase CEO Brian Armstrong and Bitwise CEO Hunter Horsley have both publicly questioned the proposed reserve’s composition, particularly the inclusion of non-Bitcoin assets.
Despite these reservations, Hougan maintains an optimistic outlook, drawing parallels with Trump’s previous policy initiatives which often evolved substantially from initial proposals. He particularly emphasised the international significance of such a development, noting, “The most important consumers of this news are not here in the US, but abroad.”
Hougan acknowledged potential volatility risks, particularly the possibility that future administrations might reverse course and liquidate holdings. Nevertheless, he argues that institutional adoption and government-backed reserves could ultimately strengthen Bitcoin’s position in the global financial landscape, regardless of political shifts.
The cryptocurrency market appears to be responding positively to these developments. Bitcoin has surged 4.78% to reach $91,677.50 within a 24-hour period, according to CoinMarketCap data. This bullish sentiment has extended to the broader market, with the overall cryptocurrency market capitalisation climbing 4.63% to $3.01 trillion.
Interestingly, betting markets reveal persistent scepticism, with Polymarket data showing only 24% of participants believe Trump will establish a Bitcoin reserve within his first 100 days in office. Whether these cautious wagers prove prescient or Trump’s administration genuinely commits to building a crypto reserve remains to be seen.
