Trump optimistic about Bitcoin strategic reserve ahead of White House crypto summit
- President Donald Trump is reportedly interested in creating a Bitcoin strategic reserve.
- Trump will announce plans for the reserve at the White House crypto summit on Friday.
- The reserve could also include ETH, XRP, ADA and SOL.
The Bitcoin strategic reserve will be a key topic at this Friday's White House Crypto Summit following recent comments from US Commerce Secretary Howard Lutnick that President Donald Trump is highly interested in a Bitcoin reserve.
Howard Lutnick says President Trump is optimistic about Bitcoin strategic reserve
In an interview with The Pavlovic Today, Commerce Secretary Howard Lutnick stated that President Trump will unveil a Bitcoin strategic reserve at the summit.
"A Bitcoin strategic reserve is something the President is interested in. He spoke about it all during the campaign trail, and I think you're going to see it executed on Friday," Lutnick told The Pavlovic Today.
President Donald Trump will host the first White House Crypto Summit on Friday. The event is organized by Bo Hines, director of Trump's working group on digital assets and chaired by AI & Crypto Czar David Sacks.
The crypto summit, along with the potential unveiling of the US crypto strategic reserve for digital assets, could play a key role in establishing robust regulatory frameworks for the crypto industry.
Lutnick mentioned that Bitcoin will receive preferential treatment above other assets in the digital asset reserve. However, the model for handling the other crypto tokens will be outlined on Friday.
"Now, there will be the question of, how do we handle the other cryptocurrencies? And I think the model is going to be announced on Friday when we do that," Lutnick said.
Trump stated earlier in a Truth Social post that his Presidential Working Group is working toward adding ETH, XRP, SOL and ADA to the reserve following his Executive Order in January.
The President also stated that he personally loves Bitcoin and Ethereum.
BTC trades near $90,000, up about 2% in the past 24 hours, suggesting traders may be positioning for a potential rally on Friday.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
