Donald Trump will trigger a Bitcoin buying spree among the world’s nations as the US inches closer to establishing a strategic reserve of crypto.
That’s according to asset manager Bitwise’s Chief Investment Officer Matt Hougan. On Tuesday, he argued that whatever shape the stockpile takes, it will signal that Bitcoin is “a globally important monetary asset.”
“It feels like a game-changer to me,” he wrote in a Tuesday memo. He sees the establishment of a US reserve as the first shot in a Bitcoin arms race.
“If you are Honduras, Mexico, or Guatemala, and you’re watching El Salvador and now the US acquire Bitcoin, can you really afford to be at zero?” Hougan asked. “If you’re Dubai, Qatar, or Saudi Arabia, are you comfortable with Abu Dhabi and the US taking the lead? What about Russia? China?”
Given its finite supply, the volume of global purchasing Hougan envisions could send Bitcoin’s price skyrocketing.
Hougan predicts a US stamp of approval on Bitcoin as a reserve asset would kick off this global one-upsmanship.
“Countries would position themselves for the emergence of Bitcoin as a globally important monetary asset.”
The comments echo those from Galaxy Digital, which predicts at least five countries will establish their own strategic reserves this year.
In terms of sovereign nations, El Salvador is the only country that has established a strategic reserve of Bitcoin. Abu Dhabi’s sovereign wealth fund has been purchasing the token as well.
Bhutan mines it at the governmental level, but has no confirmed strategic reserve. Many countries hold Bitcoin and other tokens owing to confiscations — the US has the largest such stockpile.
In an interview published this morning in The Pavlovic Today, Commerce Secretary Howard Lutnick said the model will be announced at the White House’s crypto summit:
“The president definitely thinks that there’s a Bitcoin strategic reserve. Now, there will be the question of, how do we handle the other cryptocurrencies?”
The summit will take place on Friday, chaired by AI and crypto czar David Sacks and the Working Group on Digital Assets, which is separate from the SEC’s Crypto Task Force.
“This week’s announcement — as imperfect as it is — marks the first time the US has ever said that Bitcoin is a strategic asset,” wrote Hougan.
Andrew Flanagan is a markets correspondent for DL News. Have a tip? Reach out to [email protected].