Trump’s bitcoin play sparks $10 trillion prediction
Bitcoin and the broader cryptocurrency market have made a strong comeback after US President Donald Trump announced a temporary pause on tariff threats to Mexico and Canada.
The news eased fears that had gripped financial markets, and Bitcoin rose past $100,000 after briefly dipping to around $91,000 earlier in the week. Traders are now speculating on when the cryptocurrency could reach gold’s $18 trillion market cap.
Trump has signed an executive order instructing the Treasury and Commerce departments to establish a sovereign wealth fund next year amid speculation that the US government intends to include Bitcoin as part of its investment strategy.
“We’re going to create a lot of wealth for the fund,” Trump told reporters, according to Reuters. “It’s about time this country had a sovereign wealth fund.” He has previously floated the idea of financing such a fund through tariffs.
Cryptocurrency traders on the Polymarket prediction platform have responded, lowering the odds of Trump creating a Bitcoin reserve in his first 100 days in office to 20%, up from 13% in January. Senator Cynthia Lummis, a vocal Bitcoin advocate, called the announcement a “₿ig deal” [sic] on social media, hinting that she sees it as a mechanism for US government Bitcoin accumulation.
Bitcoin traders left hanging after press conference
The excitement took a hit, however, after a highly anticipated press conference by US cryptocurrency czar David Sacks failed to deliver the confirmation of a reserve that included Bitcoin. Instead, Sacks introduced a new working group tasked with developing cryptocurrency regulations, with a particular focus on stablecoins and market structure.
When asked about a potential Bitcoin reserve, Sacks kept things vague. “That is one of the first things we’re going to look at as part of the internal working group in the administration,” he said. “We’re still waiting for some cabinet secretaries on the working group to be confirmed. But once that’s in place, one of our first steps will be assessing the feasibility of a Bitcoin reserve.”
Cryptocurrency analysts see a bullish future
Despite short-term uncertainty, analysts remain optimistic about Bitcoin’s long-term prospects under Trump’s administration.
Geoff Kendrick, head of cryptocurrency research at Standard Chartered Bank, believes the overall trajectory is clear. “Although the near-term remains choppy for Bitcoin the long-term is becoming clearer by the day,” he said in an email statement.
According to Kendrick, Bitcoin’s future hinges on two key factors: investor access and price volatility. He argues that access is improving under Trump’s leadership, with institutional inflows gaining momentum. As more infrastructure is created – like options markets – volatility is expected to decline.
“This combination is enough to drive Bitcoin to $500,000 before Trump leaves office” in 2029,” Kendrick predicted. If that happens, Bitcoin’s market capitalisation would hit $10 trillion.
Trump’s cryptocurrency team and the push for Bitcoin adoption
Trump’s self-described role as “the first cryptocurrency president” has put Bitcoin and digital assets on the table of his administration. His Treasury secretary, Scott Bessent, has signalled interest in Bitcoin, and Commerce secretary nominee Howard Lutnick has deep ties to the cryptocurrency industry.
Lutnick, who previously managed assets for Tether’s $140 billion USDT stablecoin through Cantor Fitzgerald, has been bullish on Bitcoin for years. “Bitcoin, which is rare and is special, will become ever more rare, ever more valuable,” he said before Trump’s election victory. “Over time it’ll be financed just like gold [and] oil. Bitcoin will be way, way, way higher – sometimes lower – you just have to have faith.”
Despite his deep industry connections, Lutnick has not confirmed whether he will recuse himself from the White House cryptocurrency task force, according to Politico.
As for the bigger picture, Bessent has hinted that the US government’s financial strategy may soon involve monetising assets. “There’ll be a combination of liquid assets and other resources that we work to bring out,” he said.
With Trump’s administration increasingly weaving Bitcoin into economic discussions, the cryptocurrency world is watching closely. Whether the US takes the leap into a government-backed Bitcoin reserve remains to be seen – but one thing is clear: the conversation around cryptocurrency in Washington is far from over.
(Photo by Unsplash)
See also: Bitcoin gains as US SEC unveils task force to tackle cryptocurrency regulations
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