Trump Seeks Assessment of Bitcoin Reserve Proposal from David Sacks
During a recent event, David Sacks, who serves as President Donald Trump’s advisor on cryptocurrencies and artificial intelligence, addressed the public on the topic of digital assets, sparking a range of opinions within the crypto community.
Standing alongside prominent members of Congress such as Tim Scott, Chair of the Banking Committee, Sacks mentioned that they are currently in the process of ‘examining’ the viability of a Bitcoin reserve. He stated,
“One of the directives from the president was to assess the concept of a Bitcoin reserve. We are awaiting confirmation of certain Cabinet Secretaries within the working group.”
Sacks also clarified that the recently announced Sovereign Wealth Fund would remain distinct from any potential Bitcoin[BTC] reserve.
However, there were doubts expressed by some members of the crypto community regarding this development.
Is the Bitcoin reserve plan off the table?
Market analyst Jim Bianco pointed out that the choice of language by officials hinted at a possible delay in implementing a BTC reserve. He remarked,
“Trump initially proposed a $BTC Reserve, not just to ‘evaluate’ it. When Washington talks about evaluating or studying something, it often indicates reluctance to proceed. The price of $BTC has dropped by approximately 5% since this statement.”
Similarly, Arthur Hayes, the founder of BitMEX, expressed a similar view, suggesting that Trump’s initiatives might face delays in execution.
In contrast, renowned macro expert Lyn Alden advised investors to focus on Bitcoin and disregard the idea of a reserve. She emphasized,
“Be bullish on Bitcoin. Ignore the reserve proposal.”
During his first days in office, President Trump signed an executive order related to cryptocurrencies, which included plans for a potential ‘national digital asset reserve’ to be established within 180 days.
Insiders like Senator Cynthia Lummis stressed the importance of creating a legislative framework for a BTC reserve that could withstand political changes.
Initial hopes for a U.S.-based Bitcoin reserve within a short timeframe have diminished. Nonetheless, some leaders criticized the negative response to Sacks’ statements.
Hunter Horsely, the CEO of Bitwise, encouraged patience within the community, highlighting the anticipated positive outcomes from the forthcoming crypto regulations. He stated,
“The crypto community’s impatience can be both an advantage and a drawback. Progress is being made, but mainstream adoption operates on a longer timescale. Those who remain patient will reap the benefits.”
As per predictions from Polymarket, the likelihood of a U.S. BTC reserve by 2025 has decreased from 65% in mid-January to below 50% currently.
Meanwhile, during this period, the price of BTC peaked around $108K to $109K.