US Crypto Reserve Could Skyrocket Bitcoin Market Cap by $460 Billion!

Creating a strategic cryptocurrency reserve in the United States could significantly enhance Bitcoin’s market capitalization by approximately 25%, translating to around $460 billion. This revelation comes from an analysis conducted by Sygnum Bank, which was shared with Cointelegraph. The potential establishment of a national crypto stockpile by US President Donald Trump, alongside similar initiatives proposed in numerous US states, could ignite a multibillion-dollar buying spree, with a projected 20x multiplier effect on Bitcoin’s price.

Impact of a National Crypto Stockpile

Katalin Tischhauser, the head of research at Sygnum, emphasized that the liquid supply of Bitcoin is relatively limited. As a result, larger inflows can lead to significant upward price shocks. Tischhauser stated, “Because the liquid supply of Bitcoin is very small, larger inflows cause upward price shocks.” This suggests that federal or state government purchases of Bitcoin could not only elevate its price but also trigger a new wave of allocations from institutional investors. Furthermore, other countries’ governments are already exerting a “multiplier effect” on Bitcoin’s spot price. According to Sygnum’s Crypto Market Outlook 2025 report, every $1 billion in net inflows into spot exchange-traded funds (ETFs) can drive an approximate 3-6% price movement.

Trump’s Commitment to a Crypto Stockpile

On March 2, Trump reaffirmed his commitment to establishing a US crypto stockpile that would include Bitcoin, as well as altcoins like Ether and Solana. The idea of a national crypto pool has been endorsed by Trump since July 2024, when US Senator Cynthia Lummis introduced the BITCOIN Act, which proposed a dedicated US reserve specifically for Bitcoin. Notably, more than half of US states have already considered proposals to create similar reserves at the state level.

Challenges in Establishing a Federal Reserve

Despite the enthusiasm surrounding these proposals, progress has been inconsistent. Tischhauser noted that five states have already rejected plans for crypto reserves. Moreover, the creation of a federal crypto stockpile would likely necessitate Congressional approval, a process that is both lengthy and uncertain. Tischhauser remarked, “[T]he market currently rates the probability [of a national Bitcoin stockpile] relatively low” due to various challenges, including confusing messaging and legal hurdles.

Market Sentiment and Future Prospects

While the support from the administration is viewed as bullish, Tischhauser pointed out that the terminology of a “strategic reserve” has led to considerable confusion. The implications of a national Bitcoin stockpile could be profound, not only for Bitcoin’s price but also for the broader cryptocurrency market. As institutional investors and governments consider their positions, the landscape of cryptocurrency investment could shift dramatically.

Conclusion

In summary, the potential establishment of a US crypto reserve could have a monumental impact on Bitcoin’s market cap, potentially increasing it by $460 billion. As discussions continue and proposals are debated, the cryptocurrency community is watching closely to see how these developments unfold. The future of Bitcoin may hinge on the decisions made in the coming months, making it a critical time for investors and enthusiasts alike.