Former President Donald Trump has confirmed plans for a U.S. cryptocurrency reserve that would include Bitcoin and other altcoins, which initially caused a surge in crypto markets.

Trump's advocacy for a national crypto reserve has been ongoing since July 2024, following the introduction of the BITCOIN Act by Senator Cynthia Lummis.

The proposed reserve could trigger a significant buying spree, potentially amplifying Bitcoin's price due to its limited liquid supply.

According to Sygnum Bank's research, establishing a U.S. strategic crypto reserve could increase Bitcoin's market capitalization by approximately $460 billion, representing a 25% rise.

If the reserve moves forward, institutional investors may preemptively increase their Bitcoin holdings, leading to a price rise, while delayed approval could result in gradual price impacts.

Katalin Tischhauser, Sygnum's research head, noted that government purchases of Bitcoin would likely attract further institutional investments from both domestic and foreign entities.

Concerns have been raised regarding the clarity and legal framework of the reserve, with Tischhauser emphasizing that positive developments could significantly boost Bitcoin prices.

However, congressional approval remains a major challenge, as historical crypto-related proposals have struggled to gain traction in Washington, which may delay the implementation of a federal reserve.

The White House is expected to provide more information about the crypto reserve plans during a summit on March 7, 2025, where Bitcoin is likely to gain special status.

If the reserve concept is abandoned, Bitcoin will likely continue to be influenced by ETF demand, macroeconomic conditions, and retail interest.

Despite initial enthusiasm for the reserve, market gains were lost later due to economic uncertainty and trade war concerns.

Over half of U.S. states have considered similar crypto reserve proposals, although five states have rejected such plans due to various challenges.