yolowire.com - Hopes that the U.S. will create a strategic Bitcoin (CRYPTO: BTC) reserve are fading now that U.S. President Donald Trump has returned to power.
Establishing a strategic Bitcoin reserve was one of the main promises Trump made during his election campaign last year.
However, Trump made no mention of the Bitcoin reserve, or crypto for that matter, during his inauguration speech, and it was not included during the executive orders the president signed on his first day back in the White House.
Arthur Hayes, the chief investment officer (CIO) of cryptocurrency venture capital firm Maelstrom, says he doubts Trump’s government will create a strategic Bitcoin reserve.
“I don't think Trump will get around to doing a Bitcoin reserve,” said Hayes. “At the end of the day, I don't know how borrowing money to buy Bitcoin helps on any of Trump's platforms.”
On Polymarket, the betting odds of a strategic Bitcoin reserve being created during Trump’s first 100 days in office has dropped to 45% from 60% prior to the presidential inauguration.
Crypto investors had high hopes for a strategic Bitcoin reserve as it would require the U.S. government to purchase large sums of the cryptocurrency, pushing its price higher as a result.
But those hopes now appear to be fading as the reality of a second Trump term sets in for investors.
Hayes noted the limited time before the U.S. midterm elections in two years, which will restrict the ability to implement substantial policy changes or create a Bitcoin reserve.
“There's a lot of different things you can borrow money to spend it on. I just don't think that (Trump) is going to spend it on Bitcoin,” said Hayes.
Bitcoin has fallen from an all-time high over the last 24 hours to currently trade at $104,600 U.S.