Crypto insiders say Trump’s love for bitcoin is more than a fling — even though he may be making an ‘unforced error’

• President Donald Trump isn’t faking his support for bitcoin and other cryptos.
• The new strategic crypto reserve has vocal critics among bitcoin believers.
• However, the crypto world is overjoyed that Trump seems to be fully on their side.

Allies and enemies of President Donald Trump would agree that, so far, the new administration is carrying out its bold, polarizing agenda. In just over a month, it became clear that the new commander in chief wasn’t bluffing about implementing tariffs or renaming the Gulf of Mexico.

It also looks like Trump is intent on proving to the cryptocurrency community that his self-assigned “crypto president” moniker was more than just a campaign talking point.

The crypto reserve is a catalyst, but an ‘unforced error’ means it’s not a cure-all

The precedent-shattering president recently made history by announcing that he’s planning to start a strategic crypto reserve for the US. This idea had been floated, but many were shocked to see altcoins like ripple, solana, and cardano make the list alongside bitcoin and ethereum.

Initially, the crypto market caught fire, just as it did when Trump won. Bitcoin broke out of a weekslong slump, and the smaller tokens that shockingly made the cut soared up to 67%.

“The United States pursuing a strategic reserve would be fantastic for crypto asset prices,” said Seth Hertlein, the global head of policy at crypto firm Ledger, in a recent interview. “I think that much is obvious. Any time there’s a large buyer in the market, the price goes up.”

But despite his relatively recent affinity for digital gold, Trump might not have the Midas touch.

A few days after the reserve announcement, bitcoin and smaller tokens gave up most, if not all, of their new-found gains. Volatility is par for the course in the crypto market, especially when stocks sell off, but it was startling that investors seemed to sour so quickly after this news.

Some in the crypto community fear that Trump erred by saying altcoins belonged alongside bitcoin in the US crypto reserve. Anthony Pompliano, a prominent crypto commentator and entrepreneur, slammed that part of the move, even though he said it would help him financially.

“This decision on a wide-ranging crypto strategic reserve is an unforced error that will be regretted in the future,” Pompliano wrote in a March 3 note. He added that instead of a reserve with the relative stability of bitcoin, “we seem to be getting a random smattering of speculative tools that will enrich the insiders and creators of these coins at the expense of the US taxpayer.”

Bitcoin billionaire Tyler Winklevoss concurred that ripple, solana, and cardano don’t belong in the strategic reserve. The early crypto investor said in a social media post that Trump should instead prioritize “hard money that is a proven store of value like gold.”

“Only one digital asset in the world right now meets the bar,” Winklevoss wrote on X. “And that digital asset is bitcoin.”

Other crypto mavens were reluctant to judge Trump’s strategic reserve until it’s officially set up.

“Did he overstep, or did he not overstep? I think that’s really speculative at this stage by anybody that’s commenting on it without seeing really how the reserve will take shape,” said Federico Brokate, the head of the US business at crypto-focused exchange-traded product provider 21Shares, in a recent interview. “Whether it’s what percentage of assets are held in bitcoin versus some of the altcoins, or what size is actually created for the strategic reserve as well — there’s just so many open questions still. So, tough to say.”

When asked whether the US government buying altcoins would be a mistake, Hertlein remarked that smaller tokens might be much riskier long-term bets, at least compared to bitcoin.

“We have a strategic reserve of gold, we have a strategic petroleum reserve, and we even have a strategic reserve of cheese — if you can believe it,” Hertlein said. “And it seems to me that bitcoin fits better within that class of assets than some other cryptocurrencies.”

Even if Trump’s strategic crypto reserve isn’t executed perfectly, it’s hard to see how it would be a negative for the industry. Investors seem to be at ease, as cryptos are on the rise once again.

“What’s clear is that there’s broad support for the industry, beyond just bitcoin,” Brokate said.

On crypto, Trump’s actions speak loudest

Even in a rocky market, crypto fans were ecstatic at the Bitcoin Investor Week conference hosted by Pompliano in New York City in late February.

Industry insiders in attendance, from investors to senators to lobbyists, attested that there was a night-and-day shift from the Biden administration’s anti-crypto stance to Trump’s all-in approach.

“It’s not just talk,” Hertlein, a crypto lobbyist, told Business Insider at the conference. “There’s concrete action, and there’s been a lot of concrete action in a relatively short amount of time.”

Although sentiment is a key catalyst for digital assets that can’t be valued by traditional metrics, bitcoin and other cryptos can’t thrive off vibes alone. The industry needs progress on the policy front, and those in the know are confident this new regime will deliver on its pro-crypto pledges.

“If there are government obstacles that remain from the prior administration, they want to talk to the industry to identify those obstacles so they can help knock them down,” Hertlein said of Trump’s team. “It is a completely different reception than the industry had a few months ago.”

As excited as crypto die-hards may be, their conviction preceded last fall’s election and will surely outlast Trump’s second term. Assuming they’re already all-in, the key to getting their tokens of choice to record levels may depend on getting casual investors more interested.