Trump’s Crypto Reserve Plan is a Win, But the Market Disagrees, Says Bitwise.

Bitwise: Market Misinterprets Trump’s Crypto Reserve, Bullish Impact Likely

The final version of the U.S. strategic crypto reserve will be overwhelmingly composed of bitcoin and will exceed market expectations in size, according to a Bitwise research report.

President Trump’s recent announcement about establishing a strategic crypto reserve in the U.S. should be viewed as a positive development, despite the market’s initial reaction, Bitwise stated in its Tuesday report.

Crypto markets initially surged on the news but quickly retraced those gains by Monday as investors expressed disappointment over the reserve’s asset composition.

Bitwise attributed the market’s reaction to concerns over the inclusion of multiple cryptocurrencies rather than a bitcoin-focused reserve. The initial announcement named XRP, Solana (SOL), and Cardano (ADA) as part of the reserve, with Bitcoin (BTC) and Ethereum (ETH) later added to the list.

“The decision to include speculative assets like Cardano appears more political than strategic,” wrote Matt Hougan, Chief Investment Officer at Bitwise. However, he argued that despite what some see as a misstep in execution, the market is misreading the bigger picture.

The report highlighted that Trump’s policy proposals often evolve before implementation. As a result, the final reserve is likely to be dominated by Bitcoin and will likely be much larger than the market currently anticipates.

Bitwise also noted that the establishment of a U.S. strategic crypto reserve could prompt other governments to follow suit, and any digital assets acquired would likely be held for an extended period, reducing circulating supply.

“The recognition of crypto assets as ‘strategic’ by the U.S. government is a long-term bullish signal,” the report concluded, predicting that market sentiment will eventually align with this perspective.