What Is Trump’s Plan to Bypass the Fed With a Strategic Bitcoin Reserve

• The optimism in the crypto community is reinvigorated by Trump’s strategic Bitcoin reserve promise.
• The Federal Reserve maintains a cautious approach amidst increasing market uncertainty.

With Donald Trump winning the election as the 47th President of the United States, excitement within the cryptocurrency sector grows regarding his earlier pledge to create a strategic Bitcoin reserve.

During his speech at the Bitcoin [BTC] 2024 conference held in Nashville, Trump reiterated his commitment to this initiative, generating excitement among crypto supporters.

Will the Fed obstruct Trump’s vision for a Bitcoin reserve?

Nevertheless, Jerome Powell’s latest remarks during a press briefing underscored that the Federal Reserve is not intending to engage in any governmental efforts to amass Bitcoin.

Powers initially articulated:

“We are restricted from owning Bitcoin. The Federal Reserve Act outlines our ownership permissions, and we are not pursuing any changes to that law.”

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This announcement following their monetary policy assembly created turbulence in market sentiments and forced BTC prices down from recent peaks.
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Thus far into trading sessions today, BTC was valued at $98,703.53 according to data from CoinMarketCap—which marks an increase of about 5.18% over the last day.
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After Powell’s statements,
the chances for establishing a strategic Bitcoin reserve have seemingly dwindled according to Polymarket predictions.
.

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From an initial high of approximately 40% on December 18,
the probability has decreased
to around 32%, indicating diminished expectations.
..
In addition,
the overall cryptocurrency market capitalization has seen notable declines as well—losing close to
7.5%, emphasizing ongoing market uncertainty.

What should we anticipate?

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While
the Federal Reserve possesses significant autonomy concerning monetary policy,
it does not wield veto rights over establishing a Strategic
Bitcoin Reserve (BSR).
.
.

If
Trump’s administration were keen on advancing such an initiative,
a viable method would involve issuing an executive order promptly after taking office mandating that
the U.S. Treasury employ funds from
the Exchange Stabilization Fund (ESF) for direct purchases of BTC.

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.. In conclusion ,
creating a Strategic
Bitcoin Reserve requires substantial involvement by leadership within
the Treasury rather than reliance on actions taken by
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