Is it a mistake to have a big dump after a big pump? Bitwise CIO: Trump's 'Cryptocurrency Reserves' are still bullish

Asset management company Bitwise released a research report on Tuesday, pointing out that President Trump’s announcement last weekend to establish a ‘Cryptocurrency Strategic Reserve’ in the United States was a bullish news for the Cryptocurrency market, despite the subsequent market volatility.

After Trump’s announcement on Sunday, the cryptocurrency market initially surged, but the next day it gave back all the gains.

Bitwise pointed out that investors are dissatisfied with the statement, as the tokens planned to be held in the Cryptocurrency reserves include not only Bitcoin, but also other competing coins.

Trump announced that Ripple (XRP), Solana (SOL), and Cardano (ADA) will be included in the strategic reserves, and later listed Bitcoin and Ethereum as core assets.

Bitwise Chief Investment Officer Matt Hougan said, “Including speculative assets like ADA makes it feel more calculated than strategic.” He said that despite the flawed launch, the market misinterpreted it.

This report suggests that ‘Trump’s initial proposal is rarely his final proposal’, and the cryptocurrency reserve is likely to be almost entirely composed of Bitcoin in the end, and the scale will be larger than the market expects.

Bitwise stated that if the United States does establish a strategic reserve of Crypto Assets, other countries may follow suit, and any digital assets purchased may be held for a long period of time.

This report states: “The US government declares encryption assets as ‘strategic’, which is a positive factor, and the market will eventually follow this line of thinking.”