Bitcoin Reserve Unlikely Under President Trump

According to TD Cowen analysts, incoming U.S. President Donald Trump is unlikely to support the idea of a Bitcoin reserve for the United States. Trump's firm belief in the dollar's supremacy as the global reserve currency underpins this stance.

Trump's Position on the Dollar

Recent comments by Trump have reinforced his commitment to preserving the dollar's role. He warned the BRICS alliance—made up of China, Russia, India, and Brazil—of possible 100% tariffs if they pursue a new currency alternative to the dollar in global trade.

Conflicting Ideologies

While some view a Bitcoin reserve as a hedge against potential dollar decline, TD Cowen analysts argue this conflicts with Trump’s focus on U.S. economic and military dominance. They note Trump's perspective sees the dollar's supremacy as essential to American strength, leaving limited space for alternative assets like Bitcoin.

The Debate on Digital Assets

Supporters of a Bitcoin reserve, including groups like the Bitcoin Policy Center, believe that digital assets could help maintain U.S. leadership in global finance. However, analysts at TD Cowen deem it unlikely that Trump would endorse initiatives seen as detrimental to the dollar.

Future Considerations

Although Trump may mention Bitcoin in public discourse for publicity, any serious advocacy for such a reserve would likely require considerable political effort, which is not expected from him. Analysts suggest the conversation around a Bitcoin reserve may evolve in the next two years, with proponents needing to adjust their arguments to align with Trump’s administration.