The global cryptocurrency market capitalization is currently $3.1 trillion, an increase of 1.7% in the past 24 hours. The total transaction volume in cryptocurrency is $140 billion, with Bitcoin having a dominance of 58.3% and Ethereum 8.91%. These figures show the growing influence of digital assets on the global economy and the continued interest of both private and institutional investors in the crypto market.

Within this context, the American government, led by President Donald Trump, has announced that it will establish a strategic crypto reserve, consisting mainly of Bitcoin. This decision could have far-reaching consequences for the worldwide adoption of Bitcoin and the role of governments in the crypto market.
According to Matt Hougan, Chief Investment Officer at Bitwise, the final reserve will consist almost entirely of Bitcoin and will be larger than initially expected. This could give an important boost to the institutional adoption of Bitcoin and stimulate further price increases.

Why a national crypto reserve?

A national crypto reserve can serve as a hedge against economic uncertainties and inflation. Bitcoin is often compared to gold because of its scarcity and decentralized nature. By including Bitcoin in the national reserves, the US can arm itself against monetary instability and geopolitical risks. This fits within a broader trend in which governments and financial institutions are becoming increasingly interested in digital currencies as an alternative store of value.

🇸🇻El Salvador just added another 1 BTC to our strategic reserve!

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➡️Total SBR Holdings: 6,102.18 BTC
➡️Total added today: +1 BTC
➡️Minimum total to add tomorrow: +1 BTC

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— The Bitcoin Office (@bitcoinofficesv) March 5, 2025

Elsewhere in the world, El Salvador has shown how a government strategy around Bitcoin can work. Despite restrictions imposed by the International Monetary Fund (IMF), the country continues to expand its Bitcoin reserves. Although the government has officially committed to not accumulating any more Bitcoin, a recent IMF statement suggests that the way in which the purchases are classified allows for some flexibility.

El Salvador can either structure the strategic Bitcoin reserve outside of the official public sector or use financial mechanisms to obtain Bitcoin without direct purchases. This raises the question of whether the US could follow a similar strategy. If Washington decides to build up its reserves, the American influence on the crypto market could increase considerably, which in turn will bring new geopolitical implications. The US would not only stimulate the adoption of Bitcoin, but also set a precedent for other countries to hold Bitcoin as a strategic reserve.

Market impact and price fluctuations

The announcement had a direct impact on the crypto market. Bitcoin rose 6.2% to $92,532.30, after previously reaching a low of under $80,000 due to concerns about US economic growth and an impending trade war. The rise was reinforced by a recovery in global stock markets and speculation about the upcoming White House Crypto Summit.

Other cryptocurrencies also saw a positive movement. Ethereum rose 6.4% to $2,319.80, while XRP gained 3.9% and Solana and Cardano rose 5.7% and 2.3%, respectively. Dogecoin recorded a rise of 9.1%, while the Trump token ($TRUMP) recovered 5.6% from its recent low.

The market is eagerly awaiting the details of Trump’s crypto reserve plans, which will be unveiled by Secretary of Commerce Howard Lutnick during the White House Crypto Summit. Expectations of a more favorable regulatory climate and possible institutional adoption of Bitcoin and other crypto assets continue to support prices. Investors are keeping a close eye on the volatility, as political announcements often cause major market movements.

Critical comments

Not everyone is enthusiastic about this move. Some experts question whether it is wise to include altcoins such as Solana and Cardano, given their volatility and lower market capitalization. Furthermore, market analysts point out that the expected volatility of Solana and Cardano after the White House Crypto Summit may increase further. This could cause additional uncertainty for investors and institutional parties considering investing capital in crypto.

According to an analysis by STS Digital, the options market on Deribit indicates a significant price movement after the event, with Bitcoin possibly fluctuating by $5000 in either direction. Ethereum and Solana are also showing increased implied volatility, with expected price movements of $135 and $13, respectively. The options market is signaling that investors are anticipating significant price fluctuations after Trump’s announcements.

Coinbase CEO Brian Armstrong noted that Bitcoin is the only cryptocurrency suitable for national reserves due to its status as ‘digital gold’. This perspective is supported by the strong institutional adoption and long-term store-of-value function of Bitcoin, which is less sensitive to the volatility that characterizes altcoins. This may mean that, despite the initial announcement about a broader crypto reserve, the final implementation will largely focus on Bitcoin.

What does the future hold?

The details of the crypto reserve will be further discussed during the upcoming White House Crypto Summit. Analysts expect the final reserve to consist mainly of Bitcoin and possibly be larger than previously announced. This could further accelerate the adoption of Bitcoin as a global reserve currency and bring with it new regulations that affect both investors and governments.

In addition, the question remains as to whether other countries will follow suit. China and Russia have already shown interest in alternative strategies to be less dependent on the American dollar. If the US were to successfully establish a Bitcoin reserve, it could cause a domino effect in which other nations consider similar reserves. This would further position Bitcoin as a globally accepted monetary asset.

And now?

The establishment of a national crypto reserve by the United States is a milestone in the institutional acceptance of Bitcoin. Although many questions remain unanswered, this step underlines that digital currencies are playing an increasingly important role in the global financial system.

If Bitwise’s predictions are correct, this development could not only strengthen Bitcoin, but also permanently change the broader financial landscape.