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Bitcoin and the U.S. Sovereign Wealth Fund: Strategic Move or Speculation?

President Donald Trump has signed an executive order to create the first-ever U.S. sovereign wealth fund, aimed at monetizing national assets for economic development. Details of the fund’s structure are yet to be finalized, but speculation in the crypto community is growing regarding the possible inclusion of Bitcoin. Bitwise Senior Investment Strategist Juan Leon added that Bitcoin should be added as a strategic reserve asset to the fund following Trump’s recent initiative to form a U.S. digital asset stockpile. After the announcement, Bitcoin immediately rose above the $100,000 threshold, which shows that the markets remain optimistic regarding the cryptocurrency. With the Treasury and Commerce departments getting ready for their investment plan, eyes are on if Bitcoin will be a key part of America’s financial future.

KEY LOOKOUTS                         

• The Treasury and Commerce departments have 90 days to submit their sovereign wealth fund plan, which is expected to be fully established within 12 months.

• There are growing speculations regarding whether the fund will put Bitcoin inside, making it a strategic reserve asset of the United States.

• Bitcoin shot past $100,000 after the announcement, which reflected strong investor confidence and anticipation regarding the fund’s impact on digital assets.

• The fund will monetize U.S. national assets to enhance economic development, possibly reshaping the country’s financial strategy for long-term growth.

The establishment of a U.S. sovereign wealth fund is a significant shift in the country’s economic strategy, with speculation mounting over Bitcoin’s potential inclusion. President Trump issued an executive order that requires the Treasury and Commerce departments to design a comprehensive plan within 90 days, stating investment strategies and governance structures. This move was a follow-up to his earlier initiative to form a digital asset stockpile and has further been fueling discussion about Bitcoin’s role as a strategic reserve asset. The crypto market reacted vigorously, pushing Bitcoin beyond the $100,000 mark, signifying increased investor confidence. Bitcoin may be included in the fund, fundamentally altering how the United States would use digital assets to further national wealth and economic growth.

Speculation over Bitcoin’s use in a potential U.S. sovereign wealth fund, following President Trump’s executive order aimed at creating the wealth fund, has bred optimism in the crypto market. Bitcoin surged past $100,000. It is likely the first asset in this financial play that will reshape America’s financial strategy.”.

• President Donald Trump signed an order to create the first ever U.S. sovereign wealth fund for economic development.

• The Treasury and Commerce departments are tasked with creating a strategic plan within 90 days, with full implementation expected within 12 months.

• Crypto experts, including Bitwise strategist Juan Leon, believe Bitcoin could be added to the fund as a strategic reserve asset.

• The order follows Trump’s recent initiative to create a U.S. digital asset stockpile, further fueling Bitcoin inclusion rumors.

• Bitcoin surged past $100,000 following the announcement, reflecting strong investor optimism about potential government adoption.

• The fund aims to monetize U.S. national assets, potentially reshaping financial strategies and long-term wealth management.

• As for the Bitcoin inclusion, this is purely speculative, and the final plan of the Treasury and Commerce departments will determine the fund’s composition and investment strategy.

President Donald Trump’s executive order to establish a U.S. sovereign wealth fund has caused wide speculation, especially in the cryptocurrency community. Charged with designing the structure of the fund, the Treasury and Commerce departments have 90 days to present a comprehensive plan that includes investment strategies and governance frameworks. Although the order does not mention Bitcoin, its possible addition has been a hot topic, especially after Trump’s recent move to create a U.S. digital asset stockpile. According to Bitwise senior investment strategist Juan Leon, Bitcoin could be added as a strategic reserve asset, further integrating digital currencies into the country’s economic framework.

BITCOIN Daily Price Chart

TradingView Prepared by ELLYANA

The announcement has already had a significant impact on the crypto market, with Bitcoin surging past the $100,000 mark in response to growing optimism. If the U.S. government includes Bitcoin in its sovereign wealth fund, it could mark a historic shift in financial policy, positioning digital assets alongside traditional reserves. This could also impact global economic trends as other countries will look at the option of using Bitcoin in their financial planning. As the news of the sovereign wealth fund is unfolding, all eyes are still on how the U.S. will use this move to gain a better position in the economic front.

TECHNICAL ANALYSIS

Technical analysis plays a significant role in understanding Bitcoin’s price movement after President Trump’s announcement of the sovereign wealth fund. As Bitcoin touched above the $100,000 level, key gauges like moving averages, RSI, and Fibonacci retracement levels are carefully monitored by the traders. Since there is such a rapid hike in the price, support seems to be near the level of $98,000 and resistance around the value of $105,000. The volume study also reveals higher buying activity with rising confidence from the investors’ end. If Bitcoin maintains above critical support levels, a further upward surge is expected, but a breakdown may lead to short-term corrections. As the speculation regarding the inclusion of Bitcoin in the sovereign wealth fund remains, traders are expected to track breakout patterns and volatility spikes that may be beneficial for price movement.

FORECAST

Bitcoin manages to regain the $100,000 mark after President Trump issues an executive order, and market sentiment remains primarily bullish. In fact, if Bitcoin gets officially considered to go into the sovereign wealth fund, institutional interest could erupt, driving prices even higher. The key resistance levels to watch are $105,000 and $110,000; on a breakout, Bitcoin may surge towards $120,000 in the next few weeks. Increasing trading volumes and strong accumulation by whales further lends to this bull. However, the positive macroeconomic environment and regulatory clarity regarding digital assets could also be the fuel for Bitcoin’s continued upward trend.

Bitcoin is still a very volatile asset, and any corrections should not be ignored. If Bitcoin cannot hold the key support level at $98,000, a pullback to $95,000 or even $90,000 may be in the cards. Market fluctuations based on regulatory uncertainty, interest rate hikes, or unexpected geopolitical developments may trigger temporary sell-offs. Additionally, in case the sovereign wealth fund’s final proposal restricts the role of Bitcoin or excludes it outright, negative sentiments among investors could perpetuate and squeeze the price downwards for a short period. Traders should be more vigilant regarding higher volatility and track key technical indicators, including RSI and moving averages, to ride through potential corrective cycles properly.

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