- Pompliano claims Trump is deliberately crashing markets through tariffs to force interest rate cuts, pointing to falling Treasury yields as evidence.
- Bitwise’s Hougan calls market disappointment over the Strategic Bitcoin Reserve “absurd”, noting that simply not selling existing holdings is significant.
- The Executive Order’s language suggests the government will acquire more Bitcoin, indicating firm intent rather than possibility.
- Hougan argues Bitcoin will either become a major global asset worth US$10-50 trillion or remain a niche investment, with the US reserve policy influencing other nations’ decisions.
After the recent crypto crash, it seems Bitcoin and Co seem to be stabilising for now. The largest crypto is up almost 5% over the past 24 hours, currently trading for US$83,264 (AU$132,256), which is still down 24% from the all-time high set in January.
Related: US Crypto Legal Update: Stablecoins, Trump Debanking Order and IRS Crypto Rule
There is consensus that Trump’s tariffs and the ensuing trade wars are largely behind the crash, although not all analysts agree.
Heading in Right Direction, Claims Pomp
Anthony ‘Pomp’ Pompliano, founder and CEO of Professional Capital Management, said Trump is crashing the market on purpose.
Pompliano said that President Trump and Treasury Secretary Scott Bessent are deliberately “crashing asset prices” through policies like these tariffs to force rate cuts.
As evidence for this strategy’s effectiveness, Pomp points to the decline in the 10-year Treasury yield from nearly 4.8% in January to 4.21% currently. He suggests the administration’s approach is “heading in the right direction” toward creating more favourable bond market conditions.
Bitcoin Reserve Reaction Absurd, Says Analyst
Whether Pomp’s analysis is correct or not, the market turmoil may have other reasons too. And it’s a reason where Trump also has a finger in the pie: the Strategic Bitcoin Reserve.
According to a Barron article, investors are disappointed that the US won’t be buying Bitcoin immediately – though it will hold on to any BTC it has – and rather look at further acquisitions down the track, provided it can be done in a “budget neutral” way.
Matt Hougan, Chief Investment Officer (CIO) at Bitwise, called the market’s reaction to the announcement absurd.
Hougan argues that the fact alone that the government is not selling is a “major win” – diamond hand style, one could say.
US Puts Other Countries on Notice
He also believes the US will eventually buy more, pointing at language in the EO, which is specific about this.
Related: Crypto ETF Update: Ethereum Staking Rewards Coming amid XRP Filing by Franklin Templeton
The most important thing according to the CIO is that speculations around Trump’s order are only “short-term noise”. If Bitcoin becomes a global reserve asset, other countries will follow.
The strategic reserve is a huge step forward. It’s the U.S. government putting the world on notice, saying “bitcoin matters.” That matters a lot to other countries […] who may be considering building their own strategic reserve. Do you think they’d prefer to get in before or after the U.S. starts making big moves?
Matt HouganIf all this doesn’t happen and interest in Bitcoin fizzles out, it will “be a footnote in history, bouncing around below $150,000, supported only by a small cohort of libertarians, cypherpunks, and speculators”.
Though that’s unlikely, according to Hougan.
There is no in between. Bitcoin either matters globally or it doesn’t. […] This short-term weakness is a gift.
Matt Hougan
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