After reports that Bitcoin (BTC) could be favored in former President Donald Trump's U.S. cryptocurrency reserve strategy, it has surpassed $90,000.
These speculations came ahead of the White House Cryptocurrency Summit hosted by Trump, with participation from top digital asset industry executives.
Trump to Unveil Bitcoin Reserve Plan
Citing Commerce Secretary Howard Lutnick, The Pavlovick Today reported that strategic cryptocurrency reserves will be on the agenda for Trump's White House Cryptocurrency Summit on Friday.
"The President is confident there is a Bitcoin strategic reserve. The question now is how to handle other cryptocurrencies. I think the model will be unveiled on Friday," Lutnick said.
According to the report, Trump is considering Bitcoin as a strategic reserve, distinguishing it from other cryptocurrencies. Lutnick suggested that Bitcoin will be given a unique status under Trump's plan.
"Bitcoin is one thing, and the other crypto tokens will be treated differently, positively, but differently," he added.
Following this news, Bitcoin has recovered the psychological level of $90,000, and BTC is currently trading at $90,97. According to BeInCrypto data, this is an increase of over 7% since the start of the Wednesday session.
Given Bitcoin's status as the pioneering cryptocurrency, preferential treatment for Bitcoin is not surprising. The commodity status of Ethereum (ETH) also provides a position for potential privileges.
Trump has positioned himself as a staunch advocate of the digital asset industry, but has leaned more towards the king of cryptocurrencies ahead of the Bitcoin conference in July 2024.
In a recent Truth Social post, he emphasized the administration's commitment to advancing the cryptocurrency sector. Specifically, Trump announced that XRP, SOL, and ADA will be included in the U.S. cryptocurrency reserve alongside Bitcoin and Ethereum.
However, Lutnick's remarks suggest that Bitcoin could be granted a special status under the new framework. Trump's announcement has sparked bullish sentiment in the Bitcoin market, but has also triggered significant controversy.
Some cryptocurrency leaders have expressed skepticism about including alternative cryptocurrencies (altcoins) in the U.S. reserve. Favoring Bitcoin and treating other tokens differently could distort the market, they argue.
Long-time Bitcoin critic Peter Schiff called Trump's cryptocurrency reserve plan the "biggest crypto rug pull of all time." Meanwhile, other experts predicted that additional altcoins could be included in the reserve, but this is now challenged by Lutnick's latest remarks.
Another key point of discussion is the role, or lack thereof, of Ethereum. While leaders from the Ethereum-based ecosystem are participating in the White House Cryptocurrency Summit, the blockchain lacks representation.
Nevertheless, the announcement of a strategic cryptocurrency reserve has sparked speculation that an altseason is approaching. Terra founder Do Kwon told BeInCrypto that Trump's plan could increase investment in altcoins.
However, Henrik Zeberg Jensen, Head of Macroeconomics at SwissBlock Technology AG and Fund Manager, has a different view.
"Trump is not evidence of which tokens will succeed. Look at his meme coin [TRUMP]! It has no utility and is driven by speculation. Long-term success of any token will be based on utility in future solutions. Trump's choices are arbitrary," Jensen told BeInCrypto.
If Bitcoin is favored in the cryptocurrency reserve, altcoins could also benefit. Historically, Bitcoin-led rallies have often led to altcoin surges.
