Trump's Bitcoin Reserve Plan Gains Traction

Bitcoin is back in the spotlight, and not just because of market volatility. A bold projection from the Bitcoin Policy Institute (BPI) suggests that if the US government were to accumulate 1 million BTC

The Bitcoin Policy Institute (BPI) has made a bold claim: if the U.S. government were to begin accumulating 1 million BTC, the BTC price could soar to $1 million. It may sound far-fetched, but BPI’s head of policy, Zach Shapiro, recently discussed on the Bitcoin Magazine Vivid Podcast how such a move would generate a 'huge shockwave' through global markets, pushing BTC price 'through the roof.'

Trump’s Bitcoin Reserve Plan: A Strategic Shift

This discussion on the Bright Side of Bitcoin podcast (Segment 3: A U.S. Bitcoin Standard: Interview with BPI’s Zach Shapiro) comes as President Donald Trump’s executive order, issued on March 7, continues to be a hot topic. The order, focused on creating a Strategic Bitcoin Reserve, signals a shift in how the U.S. might engage with Bitcoin—not just as a digital asset, but also as a strategic resource, much like gold.

Building a large BTC Reserve would also be crucial for establishing the U.S. as a global Bitcoin leader, with other countries closely watching America’s stance. Together, Trump’s evolving crypto strategy and the actions of other nations are shaping the future of the global digital economy.

Trump’s Tariffs Could Help Fund BTC Buying

One of the most interesting ideas is how the U.S. might fund this Bitcoin Reserve without raising taxes. Pines suggested using revenue from recent tariffs as a “budget-neutral” method to acquire BTC.

That fits well with Trump’s tariff policy, especially after the April 2 order that introduced a 10% baseline tariff on all imports. Other non-tax sources, such as gold sales and federal royalties, could also help in this endeavor.

With this policy shift impacting sentiment, the market has begun pricing in its potential impact. Let’s break down how BTC price has responded and where it could be headed next.

BTC Price Action Analysis of April 16th, 2025

The BTC price on a 5-minute chart shows distinct market phases. It began an uptrend within an ascending channel, which was strongly rejected at the resistance zone around $86,000. This resistance zone proved critical, as the price quickly reversed from this level, initiating a sharp downtrend contained within a descending channel.

The RSI indicators during the rally frequently touched or exceeded the overbought threshold, signaling buyer exhaustion before the correction began. MACD golden crosses supported the initial bullish momentum, while subsequent death crosses aligned with the bearish channel breakdown, confirming the trend shift. The RSI during the decline repeatedly entered oversold territory, suggesting temporary bounces were likely, yet momentum remained mainly bearish.

Chart 1, Analyzed by Alokkp0608, Published on April 16th, 2025

Buyers stepped in as the price reached the support zone near $83,000, halting the decline and initiating a sideways consolidation. This support has held multiple tests, reinforcing its strength. Multiple MACD golden crosses have emerged in this consolidation phase, signaling improving momentum, and the RSI has climbed above 60, suggesting a shift in sentiment.

The BTC price is pushing higher toward the mid-range, indicating early bullish intent, but it remains below resistance. The support and resistance zones are key inflection points for any upcoming breakout or breakdown.

BTC Eyes Breakout as Reserve Talk and Tariffs Shift Sentiment

With technical signals turning bullish and major macro narratives heating up, Bitcoin is at a critical tipping point. The idea of a U.S. Strategic Bitcoin Reserve, possibly funded by Trump’s new tariff policies, has added fresh fuel to long-term price speculation.

On the chart, BTC has respected key support and shows signs of renewed strength, with RSI recovery and MACD golden crosses pointing toward a shift in sentiment. As buyers step back in and price edges upward, all eyes are now on the resistance zone. If momentum holds, BTC looks poised to rechallenge the $86,000 level soon.