US Commerce Secretary Howard Lutnick reveals that President Donald Trump will announce a Bitcoin Strategic Reserve at the March 7th White House Crypto Summit.
Lutnick also hinted that while other crypto assets will receive positive treatment, they will be regulated differently from Bitcoin, implying BTC will be the main focus.
The Bitcoin price has soared to $90,000 on Lutnick’s comments and is now looking to flip the $91.5k – $93k resistance zone.
How A Bitcoin Strategic Reserve Would Work?
The bullish impact of a Strategic Bitcoin Reserve would largely depend on the capital allocated to it and the funding mechanisms employed.
For instance, Trump may need congressional approval if the Reserve requires direct federal funding or issuing Treasury bonds, considering only the US Congress has the power of the purse. This is perhaps why the Bitcoin price hasn’t already hit a new all-time high despite Lutnick’s comments.
The President could sign an Executive Order tasking the Treasury Department or the Federal Reserve to acquire Bitcoin as a reserve asset, similar to FDR’s EO 6102 on Gold. For instance, he could ask the US Treasury to allocate a part of its Exchange Stabilization Fund towards BTC. However, the legality of such moves could be contested in the courts.
Considering the uncertainty, the White House crypto summit could result in significant volatility in crypto prices.
The Bullish Case for a U.S. Bitcoin Reserve
Prominent TradFi institutions have been measuring the bullish impact of a potential US Bitcoin Reserve. Safe to say that BTC is extremely undervalued if an SBR becomes a reality.
For instance, VanEck has used Wyoming Senator Cynthia Lummis’ BITCOIN Act for its projections, which wants the Federal Government to hold at least 1 million BTCs for 20 years. VanEck projects that the value of 1 million BTCs would be worth $21 trillion.
Similarly, Standard Chartered analysts predict that BTC will hit $500,000 before the end of Trump’s tenure, largely due to the Bitcoin reserve.
Bitcoin Price Prediction — When To Buy BTC?
The Bitcoin price has rallied by nearly 7% on Lutnick’s comments. However, sidelined investors should still be patient.
The March 7 summit could turn into a major ‘sell-the-news’ event if the market perceives Trump’s SBR proposal as unfeasible.
Ideally, investors should wait for March 7th. In the event of a bullish reaction to the summit, buying Bitcoin after it flips the $93k and $96k resistance is the optimal strategy.
A bearish reaction would likely result in BTC dipping to sub-$80k levels, in which case the $72k – $74k zone could be an excellent entry point.
Bitcoin Rally Sparks Strong Demand For Bitcoin Cash, BTC Bull
The Bitcoin price rally has sidelined investors hunting for BTC beta bets. For instance, Bitcoin Cash (BCH) is the top-performing crypto asset on Wednesday, up by nearly 27% and 31% over the past week.
Assets like BCH, Litecoin and Stacks could see significant demand if a Bitcoin Strategic Reserve is green-lit.
A Bitcoin-themed meme coin, BTC Bull ($BTCBULL), has also caught the attention of investors, owing to its promise of free Bitcoin.
Despite being a meme coin, the project is based on BTC’s long-term viability and upside potential. For instance, BTCBULL holders are set to benefit from free Bitcoin airdrops, BTCBULL airdrops, and token burn events when the BTC price hits certain milestones.
A token burn scheduled at $125k and a BTC airdrop at $150k will likely be triggered in days if an SBR is approved.
Smart money investors are impressed with the long-term viability and uniqueness of BTC Bull, with many already calling it the next 100x meme coin.
Visit BTC Bull Presale
Source: https://en.cryptonomist.ch/2025/03/05/bitcoin-price-prediction-as-howard-lutnick-comments-on-donald-trumps-strategic-crypto-reserve/