US Government's Creation of a Strategic Crypto Reserve Has Sparked Mixed Reactions in the Market

US President Donald Trump's announcement last weekend regarding the creation of a strategic crypto reserve in the United States has sparked mixed reactions in the market

Asset manager Bitwise has reacted to US President Donald Trump’s musings on a strategic crypto reserve.

As reported by CoinDesk, the firm’s commentary comes in a note to investors, which follows up on Trump’s statements last weekend.

The President’s musings sparked a mixed reaction in the market. After the announcement, crypto markets went up, only to reverse those gains by Monday.

According to Bitwise, this behavior was due to investor dissatisfaction with the inclusion of multiple tokens in the proposed reserve—suggesting that the President’s statement took everyone by surprise.

“We believe that the initial market reaction to President Trump’s musings on a U.S. strategic crypto reserve was largely negative,” said Matt Hougan, CIO of Bitwise.

“We’re not surprised. After all, the President’s musings included several cryptocurrencies—such as XRP, Solana, and Cardano—and later added Bitcoin and Ethereum. In our view, the inclusion of speculative assets like Cardano in the President’s thinking on a U.S. crypto reserve suggests that the administration’s approach is more strategic than calculated.”

Despite what Bitwise termed a “flawed rollout,” the report argued that the market’s reaction was premature. It noted that Trump’s initial proposals often change, and the final reserve could focus primarily on Bitcoin and be larger than market expectations.

Moreover, Bitwise predicted that if the U.S. does proceed with creating a crypto reserve, other countries are likely to follow suit. Any assets acquired by the U.S. would likely be held for a long period.

“We view the U.S. government’s decision to classify cryptocurrencies as ‘strategic’ as a bullish development for the market,” the report concluded.

“We believe that the market’s initial negative reaction to the President’s musings will likely moderate over time.”