"Buy the dip" or "wait and see"? Bitcoin strategy of the Trump administration after the US elections

With the US election concluded, cryptocurrency policy has become a key agenda for the Trump administration. Cathie Wood, founder of Ark Invest and known as the “female stock goddess,” recently issued a major forecast: to consolidate power amid the political changes brought by the US election, the Trump government may not only hold seized Bitcoin but will also begin “active purchasing” to build a national-level Bitcoin strategic reserve.

Political Critical Period Approaching, Cryptocurrency Becomes a “Lifeline”

In the recent “Bitcoin Brainstorm” Podcast, Cathie Wood pointed out that the current Trump administration is still hesitant about actively acquiring Bitcoin, with reserve assets mainly coming from law enforcement seizures. However, she believes that as political pressure from the US election increases, the likelihood of the government rapidly launching large-scale coin-buying plans greatly rises.

Cathie Wood emphasized that cryptocurrencies have become Trump’s “political life-saving token.” Facing the upcoming midterm election risks, if the Republican Party loses, Trump will face a power vacuum. At the same time, the reason Trump continues to deepen support for the crypto industry includes his family’s growing interests in the sector and the large “crypto community” that is a significant support force in his US election efforts.

She stressed: “Most importantly, he doesn’t want to become a president limited by power. Trump hopes to achieve something in the next one or two years, and he clearly sees cryptocurrency as a pathway to the future.”

From Passive Holding to Active Purchase, the Key Turning Point for Strategic Reserves

Looking back at the US election period, the crypto industry has gathered into an influential political force. Political action committees like “Stand With Crypto” actively donated during various elections, and heavyweight leaders including Cathie Wood personally supported Trump.

More notably, interactions between the crypto industry and the White House have significantly increased. Reports indicate that industry giants like Coinbase, Tether, and Ripple even contributed funds to renovate the White House’s new banquet hall, symbolizing the deep influence this force has on policy-making.

The Trump administration has also provided tangible feedback. Besides signing executive orders to establish a Bitcoin strategic reserve, it has formed a working group led by Silicon Valley venture capital heavyweight and crypto czar David Sacks, and vigorously promoted legislation such as the “GENIUS Act,” aiming to establish clear regulatory frameworks for stablecoins.

Deep Interaction Between the White House and the Crypto Circle, Policy Support Fully Unfolds

In addition to reserve planning, Cathie Wood expects the Trump government to further promote the application of cryptocurrencies. The government plans to “ensure” that small-scale crypto transactions receive tax exemptions—meaning exempting them from capital gains tax—significantly lowering usage barriers and pushing cryptocurrencies into mainstream payment scenarios.

As the dust settles from the US election, cryptocurrencies have risen from fringe issues to mainstream policy considerations. The series of actions by the Trump government indicates that Bitcoin strategic reserves are no longer just talk but a major deployment related to national financial strategy. How this shift will influence the global crypto market remains to be seen.