Following US President Donald Trump’s signing of an executive order to create a strategic reserve of cryptocurrencies, the government is now considering ways to purchase Bitcoin without using taxpayer money. This move represents a major shift in US policy toward digital assets and could push the price of Bitcoin to unprecedented levels, such as $100,000 in the near future.
The US government is looking to boost its Bitcoin holdings.
Bo Heinz, executive director of the President’s Council of Advisors on Digital Assets, confirmed that the US government is seeking to build a strategic reserve of Bitcoin, reflecting a significant development in US fiscal policy. This move is in line with President Trump’s campaign promises. It also reflects the rapid growth of Bitcoin as a prominent financial asset in the global economy.
The target reserve size remains undefined, but officials are seeking to maximize their Bitcoin holdings without using taxpayer money. This point is considered essential to the plan, as the US government works with the Treasury Department and the Secretary of Commerce to find alternative means of financing Bitcoin purchases.
The Move Towards Cryptocurrencies as Strategic Financial Assets
In the world of digital assets, Bitcoin is one of the most unique financial assets. Many consider Bitcoin “digital gold,” adding further strength to the US economy in the long term. For this reason, the US administration seeks to expand its holdings of this valuable cryptocurrency. However, a key goal of this plan is to ensure that taxpayer money is not used. Therefore, officials are seeking alternative solutions that enable the government to purchase Bitcoin through various financing methods.
The Bitcoin market may continue to move in unpredictable directions, making it one of the most challenging markets in the cryptocurrency world. As this market evolves, the future remains uncertain for many investors.
Controversy over the Creation of a National Bitcoin Reserve
The idea of creating a national Bitcoin reserve has drawn mixed reactions from both supporters and opponents. Proponents argue that Bitcoin’s decentralization makes it an ideal hedge against inflation and ensures future economic stability. They also believe it could be a way to strengthen the United States’ position in the global economy, given the growing reliance on digital currencies.
On the other hand, many critics question the stability and safety of this move, pointing to the significant volatility of Bitcoin’s price and the regulatory issues surrounding it. Despite these concerns, the administration remains committed to continuing its plans to increase Bitcoin holdings in the long term.
The Federal Reserve Meeting: What’s the Impact on Cryptocurrencies?
On Wednesday morning, cryptocurrencies experienced minor volatility, with Bitcoin’s price falling below $83,000, while currencies like Ethereum and Solana experienced minor ups and downs. The market’s Fear and Greed Index is currently at a low of 23, reflecting the prevailing caution among traders amid the uncertainty gripping the market. Investors are closely awaiting the results of the Federal Open Market Committee (FOMC) meeting, which is expected to make important decisions regarding interest rates. Which could significantly impact market volatility. Although most analysts expect interest rates to remain between 4.25% and 4.5%, the Fed’s comments on the future of potential cuts will be a decisive factor.
Interest Rate Expectations: Will Powell’s Speech Impact the Cryptocurrency Market?
Federal Reserve Chairman Jerome Powell has repeatedly stated the need for extreme caution regarding the US economy due to issues related to inflation and unstable economic conditions. According to experts, the FOMC is likely to avoid taking any interest rate cuts before mid-2025. However, Powell’s statements at the meeting could trigger a fundamental shift in investor sentiment in the cryptocurrency market.
Will Altcoins Benefit from Interest Rate Cuts?
If Powell signals that monetary policy will be eased sooner than expected0. This could lead to a strong price increase, especially for Bitcoin and other altcoins. Conversely, if the hawkish policy continues. This could lead to further selling pressure on the market.
Even amid the gloomy atmosphere, some hope may be raised if the Fed signals the possibility of a rate cut. The US Consumer Price Index recently fell from 3.1% to 2.8%, showing some progress in controlling inflation. If Powell acknowledges this progress and indicates that an interest rate cut is imminent, interest in riskier assets. Such as altcoins, could increase.
Possible hints of interest rate cuts in the near future could provide a strong impetus for altcoins. Such as Ethereum and Ripple, increasing their appeal to investors.
Is Bitcoin’s Rise Over? Future Market Analysis
The current Bitcoin cycle appears to be different from previous cycles. The Bitcoin market is expected to move sideways for longer periods than in previous cycles, which saw sharp declines followed by rapid recoveries. This raises questions about whether Bitcoin’s rally has truly come to an end.
Although 2024 was a positive year for the market, with the cryptocurrency recording a 121.1% rise, the market entered a period of consolidation after reaching a range of $91,977 to $106,173 between November 2024 and February 2025. This sideways movement may be an indication that the current Bitcoin cycle is experiencing fewer corrections than in previous years, making the market more stable.
Can Bitcoin continue to grow?
Another analyst, Cryptoshi, suggests that the recent Bitcoin correction may be a sign of greater room for future growth. Cryptoshi sees the current price of $83,199 as a long-term investment opportunity. As the market can continue to grow slowly and steadily.
