President Trump's election victory has sparked optimism within the cryptocurrency community due to his promise to establish a strategic Bitcoin reserve.
Crypto Community Optimism
Donald Trump's recent victory in the elections was met with enthusiasm among cryptocurrency enthusiasts. The primary reason for this is his earlier promise to create a strategic Bitcoin reserve. This initiative was articulated during his speech at the Bitcoin BTC 2024 conference in Nashville.
Federal Reserve's Stance
Contrary to expectations, Federal Reserve Chairman Jerome Powell emphasized at a recent press conference that the Fed does not plan to participate in any government initiatives to accumulate Bitcoin. This statement followed a monetary policy meeting, causing market uncertainty and a pullback in Bitcoin's price from its recent peak. As of the latest update, Bitcoin was trading at $98,703.53, representing a 5.18% increase in the last 24 hours, according to CoinMarketCap.
Possible Future Actions
While the Fed holds significant independence in monetary policy, it does not have the power to veto the creation of a Bitcoin Strategic Reserve (BSR). Should the Trump administration decide to pursue this initiative, the most efficient method could involve issuing an executive order upon taking office. This order would direct the U.S. Treasury Department to utilize the Exchange Stabilization Fund for direct Bitcoin purchases.
Establishing a strategic Bitcoin reserve may require leadership from the Treasury Department, regardless of the chosen approach.
