Bitwise: Market Reaction to Trump’s Crypto Reserve Overlooks Bullish Potential

The final composition of the U.S. strategic crypto reserve will be primarily bitcoin and larger than currently anticipated, according to a new report from asset manager Bitwise.

Despite an initially positive market reaction to President Trump’s announcement of a U.S. strategic crypto reserve, cryptocurrency prices retraced their gains by Monday. However, Bitwise asserts in its Tuesday report that the market is underestimating the long-term bullish implications of the initiative.

Investor disappointment largely stems from the inclusion of multiple cryptocurrencies instead of an exclusive focus on bitcoin. Trump initially announced that the reserve would hold XRP, Solana (SOL), and Cardano (ADA) before later adding Bitcoin (BTC) and Ethereum (ETH) to the mix.

“The addition of speculative assets like Cardano suggests a tactical move rather than a purely strategic one,” wrote Matt Hougan, Chief Investment Officer at Bitwise. Despite this, he argues that the market’s reaction fails to account for the broader implications of the reserve.

The report underscores that Trump’s proposals often evolve significantly before implementation. As such, the final reserve will likely be heavily weighted toward bitcoin and exceed market expectations in size.

Bitwise further noted that if the U.S. follows through with a strategic crypto reserve, other governments are likely to adopt similar strategies. Any acquired digital assets would likely be held for the long term, reducing available supply and potentially driving up prices.

“The U.S. government formally designating crypto assets as ‘strategic’ is an undeniable bullish signal,” the report concluded, predicting that investor sentiment will eventually reflect this reality.