US Bitcoin Strategic Reserve Headlines in Focus Amid Crypto Volatility

Key Insights:

• President Trump is reportedly taking advantage of the recent Bitcoin discount to acquire more for the US strategic reserve.
• US BTC reserve may take a state rather than a federal approach.
• Kalshi highlights the rising probability that the US will launch a Bitcoin strategic reserve in 2026.

US President Donald Trump promised that his administration would create a Bitcoin strategic reserve early in his second term. However, fast-forward to the present, and the US has not been actively buying Bitcoin even after signing an executive order to create a strategic Bitcoin reserve.

Despite this, the idea of a US crypto strategic reserve continues to make headlines. Jim Cramer reportedly stated that President Trump is buying more BTC after the recent crash, as part of his efforts to build a BTC strategic reserve for the US.

If true, then last week’s crash may have provided the ideal opportunity for the US to buy BTC at discounted levels. Moreover, this may signal the return of robust demand, which may put the Bitcoin price on an aggressive recovery path.

This is because news of active demand aimed at building the reserve may inject confidence back into the market.

US Bitcoin Strategic Reserve Efforts May Take a State Approach

President Trump initially hinted that the US would create a Bitcoin strategic reserve operated at the Federal level. In fact, the Federal government currently controls the US’s current Bitcoin stash, which was mostly confiscated from illegal activities.

Although President Trump’s goal was to have a federal reserve for BTC, the trend may already be leaning towards reserves at the state level. Lawmakers in Illinois have reportedly introduced the Community Bitcoin Reserve Act, which seeks to facilitate Bitcoin reserves at the state level.

The Community Bitcoin Reserve Act may pave the way for more states to create their own Bitcoin reserves. So far, more than 16 US states are contemplating going down the same road.

This approach would be much more decentralized than taking the Federal approach and may offer more independent control.

Moreover, the state governments would be able to convert their revenue surpluses into their Bitcoin reserves. It is also worth noting that these reserves will aim to hold their BTC for long-term periods.

Will US Strategic Bitcoin Reserve Really Take Off in 2026?

The US Bitcoin strategic reserve is once again gaining traction. This was not surprising considering that cryptocurrencies are now heavily discounted compared to levels seen last year.

These discounts offer a more attractive price point, especially for governments looking to build their crypto reserves efficiently. This may highlight why reports currently claim that President Trump might be looking to buy Bitcoin now that it is severely discounted.

Interestingly, prediction markets currently signal a rise in the probability that President Trump will create a national BTC reserve this year. According to Kalshi, that probability shrank considerably during the recent market downturn.

For context, the probability of a national BTC reserve before 2027 dropped to 19% on Kalshi on 5 February. It has since bounced back to 27% as the strategic reserve narrative regains traction.

Despite the slight uptick, the prospects of a national Bitcoin reserve remain low, indicating that it could take some time before the US finally pulls the trigger. If this happens, it could potentially trigger another crypto gold rush that may trigger massive demand for Bitcoin and possibly other cryptocurrencies.