Why analysts are divided over Trump’s crypto reserve announcement

President Donald Trump announced on Truth Social on Sunday that he had directed his crypto working group to “move forward” with establishing a Crypto Strategic Reserve, which would include Bitcoin, Ethereum, XRP, Solana, and Cardano.

The announcement triggered a major rally in the cryptocurrency market.

Bitcoin initially surged from around $85,000 to nearly $95,000 before stabilizing at approximately $93,000.

Cardano and XRP also saw substantial gains, rising about 40% and 16%, respectively.

Bitcoin at $500k?

Standard Chartered’s Head of Digital Asset Research, Geoff Kendrick, noted the sharp fluctuations and reaffirmed his long-term bullish outlook on Bitcoin.

He maintained his $500,000 Bitcoin price target, outlining a timeline where BTC could reach $200,000 by the end of 2025, $300,000 in 2026, $400,000 in 2027, and $500,000 by 2028.

Kendrick attributed this forecast to Bitcoin’s increasing role as a global investment asset and a hedge against traditional financial risks.

Kendrick also suggested that Trump’s proposal could lead US states to establish their own Bitcoin reserves, potentially matching the federal government’s estimated 200,000 BTC holdings.

Lawmakers in Montana, North Dakota, South Dakota, and Wyoming have rejected proposals to establish state-level crypto reserves in recent weeks, pointing to concerns over volatility and risk. According to Bitcoin Laws, 24 states have introduced similar bills.

Not everyone’s convinced of Trump’s crypto reserve

However, investment bank TD Cowen expressed skepticism about the plan, calling it “uncoordinated” and lacking clarity on funding.

The bank’s Washington Research Group, led by Jaret Seiberg, noted that Trump’s original post did not include Bitcoin or Ethereum, raising concerns about its coherence.

Additionally, there was no indication of how the government would finance the acquisition of tokens.

TD Cowen also questioned the significance of calling it a “reserve” rather than a “stockpile,” suggesting it remains unclear whether the government intends to buy crypto assets or simply hold seized tokens.

Singapore-based QCP Capital suggested that Trump’s announcement was politically timed, likely aimed at countering negative market trends and stabilizing his approval ratings.

Coinbase CEO Brian Armstrong also criticized the plan, arguing that only Bitcoin should be included.

Joe Lonsdale, billionaire co-founder of AI-focused defense contractor Palantir and a vocal Trump supporter, criticized the proposal, stating it’s “wrong to tax me for crypto bro schemes” and that funding a crypto reserve is “not the proper, principled role of government.”

Jeff Park, a strategist at crypto index fund manager Bitwise—where Sacks’ venture firm was an early investor—argued that including coins beyond bitcoin was a “huge political miscalculation by Trump.”

The timing of Trump’s announcement comes just ahead of the White House’s first-ever crypto summit, scheduled for Friday and hosted by crypto czar David Sacks.

Trump is expected to deliver remarks at the event, which will bring together major industry leaders and investors.

TD Cowen believes the summit will provide insight into the administration’s approach to stablecoin and crypto market regulations but emphasized that a bipartisan framework remains crucial for long-term legal stability in the sector.

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