- Trump’s crypto czar confirmed that they’ll conduct a BTC reserve feasibility.
- BTC dropped below $100K again after Sacks’ presser amid mixed community reactions.
President Donald Trump’s crypto and AI czar, David Sacks, held his first press conference on digital assets on the 4th of February, eliciting mixed views from the crypto community.
In a presser flanked by key congressional leaders, including Banking Committee Chair Tim Scott, Sacks noted that they’re ‘evaluating’ the feasibility of Bitcoin reserve. He said,
‘One of the things that the president instructed us to do is to evaluate the idea of Bitcoin reserve. We’re still waiting for some Cabinet Secretaries of the working group to be confirmed.”
The crypto chief also reiterated that the recently announced Sovereign Wealth Fund will be separate from the Bitcoin[BTC] reserve.
However, some in the crypto community were skeptical of this outcome.
No more Bitcoin reserve?
According to market research analyst, Jim Bianco, the ‘wordings’ used by the officials suggested possible ‘stalling’ for BTC reserve. He said,
“Trump said he would do a $BTC Reserve, not promise to “evaluate it.” Evaluate/Study is what Washington does when they don’t want to do something. $BTC is down ~5% since this announcement.”
Interestingly, Arthur Hayes, founder of BitMEX, echoed a similar sentiment and stated that Trump policies would take longer to materialize.
In a rejoinder, renowned macro expert Lyn Alden urged users to double down on BTC and ignore the reserve. She stated,
“Long Bitcoin. Fade the reserve.”
For perspective, in his first week in office, President Trump signed a crypto executive order, which included a likely ‘national digital asset stockpile’ within 180 days.
Insiders like Senator Cynthia Lummis implored that a BTC reserve needs a legislative framework that stands regardless of who’s in power.
As a result, the initial high expectation of a U.S. BTC reserve within a hundred days has evaporated. However, some leaders also criticized the skeptical reaction to Sacks’ presser.
Bitwise CEO Hunter Horsely, urged the community to be patient for the likely fruitful outcome from the expected crypto policies.
“The crypto community’s impatience is one of it’s great strengths and great weaknesses. So much that this space has hoped for is underway — but the mainstream moves at the speed of months, not days. Good things come to those who can wait.”
That said, Polymarket’s odds of a U.S. BTC reserve in 2025 have dropped from a record of 65% on the 17th of January to below 50%, at press time.
Over the same period, BTC formed a local top between $108K and $109K.
