Volume #4: Trump's Crypto Cache - Is Bitcoin a Blunder?

The US has just taken the world by storm.

Not only embracing crypto as a form of acceptable currency, but treating it very similar to another historically valuable asset: gold.

With many investors cautious of how this will affect Bitcoin prices, Trump has already set in motion his master plan to make the US government a prominent face of crypto.

Radical supporters of crypto have criticized the president for not being bold enough and not showing sufficient active support.

Will market shifts spiral into a mess? Or will Trump consolidate the crypto market and use it to his advantage, sticking to his campaign promise.

So what’s really going down in the US federal government, and how are people reacting. Let’s break it down with stats and different perspective on this edition of Money Trees?

🪙Turning Point for Crypto

In a massive move that could possibly propel the United States as potentially the “crypto capital of the planet", Trump has decided to hold onto Bitcoin the country has gathered from the prosecution of criminals.

This sums up to an insane amount: 200,000 Bitcoins worth around $17 billion.

Bitcoin, which is the oldest yet most popular form of cryptocurrency, is capped at 21 million coins to control inflation, defying critics by providing somewhat of a price control aspect.

Supporters hope this reserve will be the light at the end of the tunnel that is US debt.

However, prices after this new executive order establishing the government Bitcoin reserve have led to a decrease in Bitcoin prices by as much as 6%, and investors are not happy.

To put this into perspective, this equates to a drop reaching as low as $84,900 a pop.

This is a monumental change from early December, when prices soared higher than $100k for the first time and Trump sent out a tweet, taking credit for this achievement by saying “YOU’RE WELCOME!!!” on social media.

The government isn’t just into Bitcoin though.

A new “US Digital Asset Stockpile” seized other, lesser known cryptocurrencies, including XRP, cardano, ripple, and solana.

💰Trump Sways in Favor of Bitcoin

A certain David Sacks, also known as the ‘crypto tsar’, has made comparisons with the president’s executive order to the Fort Knox of cryptocurrency, a military base holding a sizeable portion of US gold assets.

Once a crypto skeptic who believed that Bitcoin seemed “like a scam”, Trump has since turned a new leaf.

While there are arguments that Trump did not “maximize value for the American taxpayer”, as stated by Sacks, the US president is trying to impose budget-neutral strategies to add additional Bitcoin into circulation that does not increase the costs for taxpayers.

But when it comes to the government, many believe “budget-neutral” is simply not feasible with the government.

Although it is unclear how this will help the population, it is speculated that the feds will simply keep it as an asset. Interventions from Congress might change that, though.

Trump is now looking to help the industry and grow crypto in the US, but is facing backlash after his family amassed billions in dollars in wealth from this “digital gold”.

The president made further strides by hosting a summit at the White House with other crypto leaders.

📉The Federal Crypto Reserve: Is it an Underwhelming Feat?

Trump’s sudden change of heart, while advantageous in its own right, has seen the rise of critics who deem the market impacts as unimpressive.

They believe the government is incapable of imposing revenue-neutral policies that do not further increase American debt.

Coupled with the dropping prices crypto has seen over the last 2 months after its peak in mid-January just over $109,000, it is very difficult to imagine the new reserve providing any value to the general public.

Premature sales have already cost taxpayers $17 billion, and now the federal government is tasked with finding a strategy to maximize the value of its crypto assets.

Crypto enthusiasts are becoming less and less impressed, citing that the market has been “muted” as the price of Bitcoin continues.

Effects on the decreasing support base for Trump and his seemingly underwhelming plan will be key determinants in future financial reports and any social changes.

⛏️The Crypto Summit: Prospects and Pioneers

Trump hosted a collaborative discussion in the White House among other crypto leaders to talk about projects, security issues, and consumer protections.

Hopeful of a positive outcome, Trump enthusiastically claiming that “We feel like pioneers.”

He also highlighted his plans to make America an industry leader and demonstrated his stubbornness over the sale of the government holdings from his executive order, treating it as a sort of the role a traditional reserve would play.

Trump has received praise from attendees, who believe he is successfully promoting the digital currency by making it a mainstream asset.

His personal business ventures include a line of meme coins launched by him and his family, proving to be an innovative way to enter the market as his popularity skyrocketed after his launch just before his inauguration in January saw him amass billions in paper net worth.

Unfortunately for the big man, top executives were left largely disappointed.

Why? They believe Trump’s support seemed too superficial, citing his lack of active support for the industry.

Also, is aggressively advocated order, pushed by the crypto community, has left a rift in taxpayers’ pockets through the seizure from federal law enforcement agencies of current Bitcoin holdings, causing widespread upheaval and spite from leaders in the crypto world.

Nonetheless, the price of Bitcoin remains astronomical, around 25% higher than what it was when he got elected back in November 2024.

Trump plans on doubling down making the US the “crypto capital” of the globe, which he had accurately represented in this meeting through the introduction of cutting-edge financial tools and technology.

I would consider this only a partial success though, as some investors left wanting more.

💡Final Thoughts

Trump’s newly found confidence in crypto, semi-successful summit, along with the future of digital currency in our country are all hot topics.

Aspiring crypto investors should surely be excited, but also cautious for the road that is ahead.

Changes in the crypto market could reach heights they have never reached before!

So make sure to be on the lookout and stay in the loop for further updates.

📩 Got questions or topics you want covered? Reply and let me know! Make sure to share with friends and family.