Key Points
- David Sacks, President Trump’s crypto czar, confirmed that a Bitcoin reserve feasibility study is underway.
- Bitcoin’s price fell below $100K following Sacks’ press conference due to mixed reactions from the crypto community.
President Trump’s appointed crypto and AI chief, David Sacks, conducted his debut press briefing on digital assets on February 4th, generating a range of responses from the crypto community.
Sacks, accompanied by key congressional leaders such as Banking Committee Chair Tim Scott, stated they are currently ‘evaluating’ the practicality of a Bitcoin reserve.
Bitcoin Reserve: A Possibility or a Stall?
However, certain members of the crypto community expressed doubt about this outcome. Market research analyst Jim Bianco suggested that the language used by officials indicated a possible delay for the Bitcoin reserve.
BitMEX founder Arthur Hayes shared similar views, suggesting that Trump’s policies would take longer to implement. In response, macro expert Lyn Alden advised users to invest more in Bitcoin and disregard the reserve.
In his first week as President, Trump signed a crypto executive order, which proposed a potential ‘national digital asset stockpile’ within 180 days. Senator Cynthia Lummis argued that a Bitcoin reserve requires a legislative framework that remains unaffected by changes in power.
Community Reactions and Market Impact
As a result, the initial high expectation of a U.S. Bitcoin reserve within a hundred days has dissipated. Bitwise CEO Hunter Horsely, however, encouraged the community to be patient for the likely fruitful outcome from the expected crypto policies.
Meanwhile, Polymarket’s odds of a U.S. Bitcoin reserve in 2025 have dropped from a record of 65% on the 17th of January to below 50%, at press time. Concurrently, Bitcoin formed a local top between $108K and $109K over the same period.