U.S. Bitcoin reserve draws mixed reactions: ‘The market is skeptical on…’

Top asset managers have varied reactions to the U.S. national BTC reserve.
The current market expectation of the reserve was lukewarm, per Polymarket odds.

As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed numerous groundbreaking developments that have reshaped the global economy. The prospect of a U.S. national Bitcoin reserve is one such event that has caught my attention, not just for its potential impact on the crypto market but also for the broader implications it may have on the world’s reserve currency – the U.S. dollar.

The crypto market is watching two key updates from Trump’s transition team: the treasury secretary pick and the creation of a national Bitcoin [BTC] reserve.

As a researcher examining Bitcoin (BTC), I’ve observed that its price is often influenced significantly by certain factors. However, when I delve into the perspectives of leading asset managers within the industry, their views on this topic are not uniformly positive. Instead, they present a mix of opinions, reflecting the complex and evolving nature of BTC as an investment asset.

As aanalyst, I can confirm that, based on my understanding, VanEck fully endorses the proposed initiative. This is according to Matthew Siggel, their head of digital assets research, who made this statement.

“VanEck endorses Strategic Bitcoin Reserve.”

BlackRock’s mixed signals

Various sources, including BlackRock (the world’s leading asset manager), have presented conflicting views regarding Bitcoin this week. Initially, some reports indicated that the company endorsed a proposal involving Bitcoin as a reserve asset.

Contrarily to previous reports, Eleanor Terret from Fox Business questioned their validity, referencing reliable sources connected to BlackRock. In her words,…

As a researcher delving into the world of finance, I can share an insight based on my sources: Contrary to some recent speculations, BlackRock has not endorsed holding a strategic Bitcoin reserve.

Speaking of which, renowned Bitcoin skeptic Peter Schiff has voiced concerns that the proposed plan might influence both the U.S. dollar and Bitcoin should it be enacted. In part, Schiff’s statement expressed his apprehension over this development.

In essence, printing too much money to purchase Bitcoin would lead to hyperinflation in the U.S., making the dollar virtually valueless. Without a valuable dollar, the U.S. wouldn’t be able to continue purchasing Bitcoin.

Yet, Senator Cynthia Lummis, an advocate for holding Bitcoin reserves, proposed the idea of swapping U.S. gold reserves for Bitcoin.

Due to a variety of opinions, it’s challenging to predict with certainty whether Trump will establish a Bitcoin reserve in the future. Currently, according to Polymarket’s data, the likelihood of President-elect Trump creating such a reserve stands at less than 40%.

According to Adam Back from Blockstream, this might imply that a possible reserve wasn’t factored into the price, and if key players start anticipating the U.S. reserve, Bitcoin could potentially surge past seven figures (over $1 million).

In case a significant US Bitcoin Reserve is established, there’s a possibility we could see bitcoin values soaring into the seven figures during this cycle. However, the market currently has doubts about substantial continuation, meaning it hasn’t factored in such an event yet.

Moving forward, I’ll be closely monitoring the upcoming days or weeks to gauge if President Trump intends to push ahead with his proposed plan.

2024-11-20 18:31

BlackRock’s mixed signals

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