Trump’s Plans to Buy Bitcoin Spark Concerns of Market Shift

WASHINGTON, D.C. — As the price of Bitcoin remains stagnant, recent comments from a senior White House official have ignited discussions about how former President Donald Trump could leverage U.S. gold reserves to bolster Bitcoin holdings. Bitcoin has been trading around $85,000 since early March, causing many investors to adopt a cautious approach.

Bo Hines, executive director of the President’s Council of Advisors on Digital Assets, unveiled plans that hinge on the U.S. financial strategy concerning its gold reserves. “If we actually realize the gains on the U.S. gold holdings, that would be a budget-neutral way to acquire more Bitcoin,” Hines stated during an appearance on the Crypto in America podcast. He suggested that the best strategies surrounding Bitcoin will likely be implemented as part of Trump’s economic agenda.

This year’s Bitcoin Act, reintroduced by Senator Cynthia Lummis, proposes a significant purchase of one million Bitcoin — equating to approximately 5% of the total supply — over the next five years through the sale of Federal Reserve gold certificates. Hines emphasized the importance of accumulating Bitcoin as a key asset for the nation.

“It’s high time that our president started accumulating assets for the American people, which is what President Trump is doing rather than taking it away,” Hines commented. Trump has previously issued an executive order that halts the sale of Bitcoin and cryptocurrency seized by the U.S. government.

At a recent bitcoin and crypto conference, Trump reiterated his commitment to transforming the U.S. into a “bitcoin superpower.” In a pre-recorded message, Trump declared, “Pioneers like you will be able to improve our banking and payment systems and promote greater privacy, safety, security, and wealth for American consumers and businesses alike. You will unleash an explosion of economic growth.” The former president’s enthusiasm around cryptocurrencies has seemingly buoyed market confidence.

Cory Klippsten, CEO of Swan Bitcoin, noted, “Bitcoin is rewriting the rules of wealth creation and economic freedom for all—a truth President Trump recognized at the Digital Assets Summit by vowing to make the U.S. a ‘bitcoin superpower.’”

Despite confidence from some industry leaders, the stagnation in Bitcoin prices has not gone unnoticed. Ed Hindi, chief investment officer at the Switzerland-based hedge fund Tyr Capital, emphasized that external economic factors are contributing to current market dynamics. “The bitcoin bearish price action is being driven by exogenous factors like trade wars, uncertainty about fiscal and monetary policies, and geopolitics,” Hindi said. He anticipates Bitcoin could rebound, predicting new record highs above $125,000 in 2025.

Market observers remain wary of macroeconomic influences affecting cryptocurrency values. Recent data from the Federal Reserve has indicated rising risks of a recession, prompting further concern among investors. Jerome Powell, Fed chair, echoed sentiments of increased uncertainty, although he did not confirm the likelihood of an economic downturn.

In contrast, Robbie Mitchnick, head of digital assets at BlackRock, noted the historical link between recessions and Bitcoin price increases. “A recession would be a big catalyst for Bitcoin,” he remarked during an interview, outlining how prior economic downturns facilitated growth in digital asset classes.

Trump’s bold plans to acquire Bitcoin could signal a significant policy shift that impacts not only the cryptocurrency market but also investor sentiment amid existing economic concerns. With the global landscape in flux, how these strategies unfold will be observed closely by traders and economists alike.