A key policy of the Trump administration regarding cryptocurrency is about to reach an important milestone — the "60-day Bitcoin strategic reserve assessment period" originally scheduled to expire on May 5 may have new impacts on the cryptocurrency market.
According to the executive order signed by Trump in March, the U.S. Treasury is required to submit a detailed report on the feasibility of establishing a national Bitcoin reserve within 60 days (i.e., by May 5).
This report will determine whether the U.S. officially incorporates Bitcoin into its strategic reserve assets and may involve how to use tariff revenues, adjust gold reserves, and other funding sources to purchase Bitcoin.
Although this policy does not directly "ban" Bitcoin, the market previously misinterpreted it as a "ban," leading to price fluctuations in Bitcoin.
It is noteworthy that the Trump administration's attitude towards cryptocurrency has undergone a significant shift. During the 2024 election, Trump received strong support from the cryptocurrency industry and promised to ease regulations and push for the U.S. to become a "Bitcoin superpower."
The policy focus includes:
Establishing strategic reserves:
Plans to include cryptocurrencies such as Bitcoin and Ethereum in national reserves, with the federal government currently holding approximately 200,000 Bitcoins (worth about $15.6 billion), and potentially expanding the reserve scale through asset seizures or government purchases in the future.
Deregulation:
Fired the previously hardline SEC Chairman Gensler, appointing pro-cryptocurrency Paul Atkins to succeed him, and rescinded several regulations that restricted the development of cryptocurrencies.
Crackdown on Central Bank Digital Currency (CBDC):
Clearly prohibits the issuance or use of CBDCs both domestically and internationally, instead supporting private digital currency innovation.
The implementation of these policies may have a dual impact on the market:
On one hand, the strategic reserve plan may enhance Bitcoin's status as "digital gold," attracting more institutional investors to enter the market;
On the other hand, regulatory uncertainties remain, such as the sources of reserve funds and specific implementation details still being unclear, which could lead to short-term price fluctuations.
If the report on May 5 sends positive signals, the price of Bitcoin may rise further;
Conversely, if the policy strength falls short of expectations, the market may experience a correction. Investors need to closely monitor the movements of the U.S. Treasury and subsequent legislative developments.
