Despite initial concerns over the inclusion of altcoins, Bitwise CIO Matt Hougan believes that Donald Trump’s planned US crypto reserve will end up being almost entirely Bitcoin—and much larger than the market expects.
Bitcoin to Dominate Trump’s Crypto Reserve
Trump initially announced on March 2 that the US crypto reserve would include Solana (SOL), XRP, Cardano (ADA), Bitcoin (BTC), and Ether (ETH). However, Hougan believes that the final reserve will overwhelmingly favor Bitcoin, while altcoins will play a much smaller role than initially suggested.
“After the dust settles, I suspect the final reserve will be nearly entirely Bitcoin, and it will be larger than people think,” Hougan wrote in a March 5 market note.
Bitcoin’s price initially surged on the news but later dropped below $83,000 before rebounding above $90,000—partially due to Trump delaying auto parts tariffs on Canada and Mexico.
Why Altcoin Inclusion Sparked Controversy
The inclusion of altcoins like Cardano and Solana in the reserve raised eyebrows in the crypto industry. Critics, including Coinbase CEO Brian Armstrong, argue that Bitcoin is the only cryptocurrency that should be considered a strategic reserve asset—comparing it to gold.
“The inclusion of speculative assets like Cardano feels more calculating than strategic,” Hougan noted.
Despite this, he believes the market is misinterpreting the move, stating:
“In the end, this is bullish.”
Trump’s Reserve Strategy: More Adjustments to Come?
Hougan pointed out that Trump’s initial policy moves are rarely final, suggesting that the upcoming White House Crypto Summit on March 7 could reshape the reserve’s composition.
Commerce Secretary Howard Lutnick has already hinted that Bitcoin will receive special status, while other cryptocurrencies will be handled differently.
Could the Crypto Reserve Be Scrapped?
While unlikely, Hougan acknowledged a small chance that pushback from lawmakers could lead to the reserve being abandoned or limited to crypto assets the government has already seized.
However, if the US formally establishes a crypto reserve, other nations could follow suit, increasing Bitcoin’s global importance.
“If the US makes a crypto reserve, it’ll be more likely that other countries will look at wanting their own slice of Bitcoin,” Hougan said.
A Long-Term Hold—Regardless of Who’s in Office?
Hougan also noted that even if a Democrat wins the next election, the US is unlikely to sell off its crypto holdings. Instead, he believes any Bitcoin acquired would be held long-term, similar to gold reserves.
“There are a significant number of people who love crypto and a relatively small number who hate it,”Hougan explained, pointing out that crypto-friendly policies helped the GOP gain voters in the last election.
Market Outlook: A Bullish Signal for Bitcoin?
Despite short-term market fluctuations, Hougan remains confident that the final outcome of Trump’s crypto reserve strategy will be bullish for Bitcoin.
“The market’s initial bullishness strikes me as the right one. I think the market will eventually realize that.”
With Trump’s crypto policy announcement looming, investors will be watching closely to see whether Bitcoin truly takes center stage in the US’s strategic digital asset holdings.
