A United States Strategic Bitcoin Reserve has been in discussion for some time. However, recent comments suggest that it is now almost a certainty. It is discussed in the article below.

On Sunday 2nd of March renewed interest was sparked regarding a Bitcoin reserve by the US administration. It was announced a new plan will include Bitcoin, Ether, Solana, XRP and Ada, in a post on Truth Social. This sent the price of all related coins soaring. Bitcoin and Ethereum are said to be at the heart of the reserve, meaning it is assumed they will make up the bulk of it. However, it also causes major rises in the price of other altcoins. XRP rose by 33 per cent, SOL jumped by 25 per cent and Cardano rose by 60 per cent.

The US Crypto Reserve

Bitcoin had a huge rise, moving up 10 per cent to $94,343. This was after a tepid weekend, where it dropped to a three-month low on Friday. This new push is forcing ahead a new Bitcoin price prediction, in which some investors believe it may reach $1.5 million by 2030. This time on Friday, anyone who had bought Bi6tcoin in 2025 would have been down on their investment. At the end of January, it was trailing around 5 per cent on the year with the price in continued decline. However, this has now shifted.

Bitcoin had suffered over the few weeks leading up to this. Plans for a US Strategic Reserve that included cryptocurrencies had diminished somewhat amidst other more pressing global and homeland affairs. Talk about this scheme had been big in the run-up to the incoming new government takeover. Yet despite talks of a strategic reserve, the prospect of it including Bitcoin was something that was being looked into. This usually means it is a plan that has been shelved.

This volatility required for Bitcoin to rise even higher. It is essentially short-term investors being replaced with long-term investors. Seen as a good sign for the asset, it inevitably comes with price drops in the short term. Over the long term, Bitcoin continues to outperform a host of major asset classes. Historical data shows that when Bitcoin drops, it soon bounces back stronger than ever. This is what has been witnessed this weekend.

Continued Institutional Investment 

All of this is a sign of increasing institutional investment. The US financial world saw the introduction of Spot Bitcoin ETFs last year, which has also buoyed confidence. Signed off by the Securities and Exchanges Commission, they allowed investors to buy into a fund that owns commodities. In this case, it was not gold or oil but Bitcoin and later, Ethereum, for which funds were also established. Despite some outflows, these have proven extremely successful. Similar funds are now planned for Europe, based in Switzerland. There have also been introduced further ETFs in the US for Solana and Litecoin. It is estimated that other financial institutions are still treading carefully with Bitcoin and crypto, allocating around 1 per cent to 2 per cent of their income to it. It is believed this is only set to increase over time.

Treading Carefully With Institutional Investment  

This step-by-step approach is probably for the better, as there are cautionary tales from elsewhere in the world in which countries have dived head-first into cryptocurrency acceptance and integration and not fared well. El Salvador is a perfect example of this. One of the first countries to accept Bitcoin as legal tender, they recently went back on this experiment in exchange for a bailout from the International Monetary Fund. While it is still legal tender, businesses are no longer obliged to accept it as they once were. It can also not be used to pay bills or taxes.

There are of course many differences between this country and the US. El Salvador was already a faltering economy when they announced their plan to fully integrate Bitcoin. They do not have the strength that the US has or the economic partners to help make this work. However, many of its forward-thinking ideas should not be dismissed. Instead, they should be looked upon as a way to improve these services further down the line. The country still has 688 Bitcoin in its reserve, currently worth $574 million.

All this will undoubtedly be discussed and mulled over at the forthcoming crypto summit. It will unite crypto industry leaders with the government’s own Working Group on Digital Assets. Its aim is to position the US as a global leader in cryptocurrency. There are also movements that will allow the State Treasurer to invest public funds in Bitcoin.

All of this signifies a continued shift in the acceptance of Bitcoin in mainstream finance. Inevitably, there will be short-term drops. Bitcoin investing is increasingly being tagged as a long game. You just have to decide if now is the time to get in on it or wait a little longer.

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