US President Trump will hold his first Cryptocurrency Summit at the White House on Saturday morning Taiwan time since taking office, and the focus is on the revelation by US Commerce Secretary Howard Lutnick on Wednesday that Trump is expected to announce a plan to establish a strategic Bit reserve.
Previously, on 2 October, Trump announced on Truth Social that he will make Altcoins, including XRP, SOL, ADA, BTC, and ETH, an asset class for the cryptocurrency strategic reserve, and promised to ensure that the US becomes the world's cryptocurrency capital, making America great again.
Trump's Cryptocurrency Reserve May Be Mostly Bit
On Wednesday, Bitwise Investment Chief Matt Hougan analyzed that while Trump's planned cryptocurrency strategic reserve will include several large-cap Altcoins, it will ultimately be "almost entirely composed of Bit":
Market participants have reacted rather coolly to the announcement, as the reserve not only includes Bit, but the inclusion of low-cap assets in the announcement has unnecessarily complicated the matter, but once the dust settles, I suspect the final reserve will be almost entirely composed of Bit, and the scale will be larger than people expect.
Trump's deviation from a "Bit-only" reserve plan has caused some cryptocurrency commentators to worry, as they believe Bit is the only suitable cryptocurrency for a reserve. Matt Hougan said that the inclusion of speculative assets like Cardano feels more like a calculated result than a strategic decision, and while the way it has been pushed out has flaws, the market's interpretation of it is wrong, and it will ultimately be a positive news.
In Matt Hougan's view, like tariff policy, Trump's initial proposal "is rarely the final plan", and the White House Cryptocurrency Summit may lead to changes in the composition of the reserve, especially with the advice of industry leaders.
Matt Hougan also mentioned that, although less likely, if the backlash from the market is too strong, the reserve plan may be cancelled, or only the assets already seized by the government will be retained, and if the US does establish a cryptocurrency reserve, other countries may also start considering holding their own Bit reserves.
The US May Hold Cryptocurrencies Long-Term
Furthermore, Matt Hougan believes that even if the Democrats regain power in the future, the US government is unlikely to sell the cryptocurrencies it has purchased, and any cryptocurrency assets "will be held long-term", just like the gold reserve, because Democratic leaders will not alienate voters for a small profit:
There are a large number of people who love cryptocurrencies, and the opponents are relatively few, as evidenced in the last election, where the Republicans won a large number of votes by embracing cryptocurrencies, and the Democrats' hostile attitude did not bring much benefit.
The initial optimistic reaction of the market (to the reserve plan) is, in my view, correct, and I believe the market will ultimately realize this.
