- Former President Trump signed an executive order to establish a U.S. sovereign wealth fund within one year.
- Bitcoin Price surpassed $100,000, rebounding from $91,000 lows amid speculation about government Bitcoin purchases.
- Polymarket prediction platform shows 20% odds of Trump creating a bitcoin reserve in his first 100 days.
- Standard Chartered Bank predicts bitcoin could reach $500,000 by 2029 under improved market conditions.
- Key appointees including Treasury Secretary Scott Bessent and Commerce nominee Howard Lutnick have significant crypto exposure.
Bitcoin and cryptocurrency markets rallied as former President Donald Trump signed an executive order directing the creation of a U.S. sovereign wealth fund, sparking speculation about potential government bitcoin purchases. The move coincides with bitcoin’s surge above $100,000, as markets respond to reduced trade tensions with Mexico and Canada.
The fund’s establishment, scheduled within the next year, marks a significant shift in U.S. financial policy. “We’re going to create a lot of wealth for the fund,” Trump told reporters, describing it as an overdue development for the nation. The initiative would be funded through tariffs and other revenue sources.
Senator Cynthia Lummis, who has [proposed legislation for the U.S. to acquire one million bitcoin over five years], characterized the announcement as a “₿ig deal” on social media platform X, suggesting potential cryptocurrency integration.
David Sacks, Trump’s appointed AI and crypto czar, is scheduled to outline the administration’s strategy for maintaining U.S. cryptocurrency leadership. The implementation team includes Treasury Secretary Scott Bessent and Commerce Secretary nominee Howard Lutnick, who [has confirmed “hundreds of millions of dollars of exposure” to bitcoin].
Market analysts have turned increasingly optimistic. Geoff Kendrick, head of crypto research at Standard Chartered Bank, projects bitcoin could reach $500,000 by 2029, citing improved institutional access and decreasing volatility as key drivers. “The only things that really matter long-term are investor access and bitcoin volatility,” Kendrick noted in his analysis.
The initiative faces scrutiny regarding potential conflicts of interest, particularly concerning Lutnick’s role in managing assets for Tether, the $140 billion stablecoin issuer, through Cantor Fitzgerald. [According to Politico], Lutnick has not confirmed whether he will recuse himself from the new White House cryptocurrency task force.
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