Bitcoin recorded additional gains today, reaching unprecedented levels driven by growing expectations of a potential strategic Bitcoin reserve under U.S. President Donald Trump.
Trump is known for his pro-crypto stance, especially after nominating individuals with favorable views on cryptocurrencies to key leadership positions. However, critical questions remain about how this reserve would be formed, particularly given the financial and procedural constraints that could challenge its implementation.
If Trump proceeds with the plan through an executive order, funding would be limited to the current Treasury budget, restricting the government’s ability to purchase additional Bitcoin. Furthermore, any future administration could rescind the order, leaving the future of this reserve uncertain.
Despite Bitcoin’s significant gains, the performance of other cryptocurrencies remained subdued as investors exercised caution ahead of the Federal Reserve meeting. Ethereum rose by 1.1%, reaching $4,011.80, approaching its record high from 2021. Ripple also climbed 3.7%, hitting $2.4999.
All eyes are now on the Federal Reserve’s interest rate decision, with expectations pointing to a 25 basis points cut. However, the primary focus will be on the accompanying statements, particularly regarding the monetary policy outlook for 2025.
