US President Trump unexpectedly posted on Truthsocial last night, announcing that BTC, ETH, XRP, SOL, and ADA will be included in the US's new Altcoin strategic reserve, and has instructed the presidential task force to advance the strategic reserve plan, causing these named Altcoins to surge in price upon hearing the news.
At the same time, Trump will host the White House's first Bit cryptocurrency summit on the 7th and deliver a speech, and the White House's AI and Bit cryptocurrency czar David Sacks tweeted today that Trump has announced the establishment of a Bit strategic reserve consisting of top Altcoins, which is consistent with the executive order he signed in his first week in office, and there will be more exciting content at the summit.
Arthur Hayes: The government lacks money to buy coins
However, BitMEX co-founder Arthur Hayes is not convinced by Trump's announcement of establishing a US Altcoin strategic reserve, saying today:
Nothing new, just talk, let's wait until they get congressional approval to borrow money or revalue gold, without that, they don't have the money to buy Bit and shit coins.
Of course, I'm not bearish, I still insist on being bullish, but I won't buy more coins at this point.
What Arthur Hayes said is not unfounded, Reuters pointed out that it is currently unclear how the new Altcoin strategic reserve will be established and operated, and it is also unclear whether congressional legislation is required to approve it, with some analysts believing the US Treasury Department could create an Altcoin reserve through the Exchange Stabilization Fund.
Republican Senator Cynthia Lummis, who is pushing a Bit strategic reserve bill and seeking to have the US establish a 1 million Bit reserve, suggested recently that the US could sell off some of the Federal Reserve's gold reserves to establish a Bit reserve without increasing the government's fiscal deficit, noting that the US already has a financial asset form that can be converted into Bit, which is gold certificates, and this would have a relatively neutral impact on the US balance sheet.
Pessimistic about the impact of the strategic reserve
It is worth noting that Arthur Hayes published a long article last month warning that if Trump successfully establishes a Bit strategic reserve, the Bit price will skyrocket and the market will go into a frenzy, but once the government completes its purchases, the "only up" trend of Bit will also come to an abrupt halt.
Arthur Hayes believes that the Bit strategic reserve could have a "net negative effect" on the entire industry, as the reserve could be used as a "political weapon", and if the Democratic Party wins the 2028 election and decides to sell off the reserve, the situation could be reversed, as the Bit strategic reserve is just another financial asset that can be bought and sold, and if the Democratic Party returns to power:
There will be 1 million Bit sitting there quietly, ready to be sold at any time, just a signature away.
In Arthur Hayes' view, this will turn the US government's Bit reserve, or reserves of "national shit coins" like XRP, into a "powerful political weapon", and whether the US buys or sells more coins will be "primarily based on political factors rather than financial interests".
