Bitwise Argues Market is Wrong—Trump’s Crypto Reserve is a Boon for Bitcoin.

Bitwise: Market Misunderstands Trump’s Crypto Reserve, Long-Term Impact is Bullish

The final structure of the U.S. strategic crypto reserve will be primarily composed of bitcoin and will exceed expectations in scale, according to a Bitwise research report.

President Trump’s announcement last weekend about creating a strategic crypto reserve initially sent markets higher, but those gains were erased by Monday as investors reacted negatively to the details. Despite this, Bitwise argues in a Tuesday report that the long-term impact remains strongly bullish.

The negative sentiment was largely driven by the inclusion of multiple cryptocurrencies rather than an exclusive focus on bitcoin. The initial reserve lineup featured XRP, Solana (SOL), and Cardano (ADA), with Bitcoin (BTC) and Ethereum (ETH) later added.

“The decision to incorporate assets like Cardano seems more politically motivated than purely strategic,” wrote Matt Hougan, Chief Investment Officer at Bitwise. Despite what some see as an unstructured rollout, he argues that the market is misjudging the bigger picture.

The report emphasized that Trump’s proposals often shift before they are finalized. As a result, the completed reserve is likely to be significantly larger than anticipated and overwhelmingly dominated by bitcoin.

Bitwise also highlighted that if the U.S. successfully establishes a strategic crypto reserve, it could set a precedent for other countries. Any digital assets acquired for such reserves would likely be held long-term, potentially impacting supply and price trends.

“The U.S. government recognizing crypto assets as ‘strategic’ represents a major shift and an undeniable bullish signal,” the report concluded, predicting that market sentiment will ultimately adjust to this perspective.