Stanford Analyst Identifies Three Key Reasons Trump Might Launch Bitcoin Reserve on Jan 20

• A renowned crypto expert has highlighted reasons why Donald Trump could launch the strategic Bitcoin reserve on the day of his inauguration. 
• This expert believes that omitting this massive initiative from his activities could generate disappointment among influential donors. 

A prominent crypto investor who is also a PhD holder from Stanford University, Fred Krueger, has added his voice to the much-anticipated establishment of the US strategic Bitcoin reserve. According to him, the official announcement could be made on January 20, the day of Donald Trump’s inauguration.

Reasons Trump Could Launch the Strategic Bitcoin Reserve

Justifying his prediction, Krueger highlighted three key reasons why this could happen:

• He expects several executive orders to be announced on January 20.
• Lack of or no executive order on the strategic Bitcoin reserve could upset donors who largely supported his campaign.
• Trump cannot afford to create tension among these influencing donors at the start of his presidency.

Meanwhile, recent data from the prediction platform Polymarket suggest that there is only a 42% probability that Trump would launch this groundbreaking initiative in his first 100 days in office. According to our research, the current odds represent an 18% decline from the previous level.

Source: Polymarket

Another observation is that this market has generated a significant level of interest as its total volume surpasses $2 million. While this underscores the high interest in Trump’s crypto policies, this also highlights the height of impact this could have on the overall market growth.

The strategic Bitcoin reserve has, over the past several months, generated support among key crypto enthusiasts and US government officials, including Senator Cynthia Lummis. In a CNF report, Lummis proposed the adoption of Bitcoin to back the USD. According to her, this would strengthen the American economy and cement its status as a world currency.

Pending the much-anticipated inauguration, multiple sources have also hinted that Trump is already planning on key executive orders for the crypto industry. In a Bloomberg report, it was highlighted that there could be an executive order to create a crypto council that would constantly advise the government on crypto-friendly policies.

Other Expected Executive Orders

In addition to this, the US Securities and Exchange Commission (SEC) could rescind its decision on the 2022 accounting guidance known as “SAB 121” based on an executive order. As stated, this initiative made it very costly for some companies, including Banks, to hold cryptos for clients. In all, Trump is expected to sign an executive order to elevate the status of the asset class, as recently mentioned in a news piece by CNF.

Sources have disclosed that elevating cryptos would make them a “national imperative or priority,” marking a significant shift in government sentiment towards the industry. According to the report, government departments may be asked to review their harsh policies and also end all litigation involving the industry.

Meanwhile, CEO of the Blockchain Association Kristin Smith advises that the US leaders encourage “American Crypto Innovation.”

As the most pro-crypto president in history, President-elect Trump has a chance to tell the federal government that crypto is something we should embrace, not punish. It’s critical that our leaders in Washington—and key federal agencies—encourage American crypto innovation, and an executive order stating as much would be a very positive first step for the new administration.

Currently, the crypto market is 1.18% up as some top assets attempt to make a significant headway. Fascinatingly, BitMEX co-founder Arthur Hayes has predicted that Trump’s influence could force a massive upsurge in the first quarter of 2025 (Q1 2025), per a CNF report.