Donald Trump has no immediate plans to buy more Bitcoin (BTC) unless the price dips below $60,000, according to Jeff Park, Head of Alpha Strategies at Bitwise. He believes Trump’s cautious approach is a calculated move—where political risks outweigh potential financial gains.
Political Risk vs. Financial Gain
Trump, who signed an Executive Order last week to establish the Strategic Bitcoin Reserve, already has access to roughly 200,000 BTC. These holdings, worth approximately $17 billion, primarily come from government seizures. Although these Bitcoins cannot be sold, the administration is exploring ways to expand the reserve without using taxpayer money.
According to Park, government officials are hesitant to buy Bitcoin in a rising market.
“Nobody wants to be the scapegoat if the price tanks after a government purchase,” he explains. “A president buying Bitcoin at $100,000 only to see it crash to $70,000 would suffer a massive reputational hit.”
That’s why Trump is waiting for a dip around $60,000 before making a move. At that point, he could frame the purchase as a smart strategic decision and deflect criticism.
Bitcoin as a Geopolitical Weapon
The Strategic Bitcoin Reserve is being positioned as the digital equivalent of Fort Knox. White House advisors, including AI and crypto advocate David Sacks, believe Bitcoin could strengthen U.S. dominance in the global financial system.
However, when and how additional Bitcoin will be acquired remains uncertain. Park emphasizes that a successful Bitcoin acquisition strategy should include three key elements:
- An automated buying system to avoid emotional decision-making.
- A collaborative decision-making process to distribute political risk.
- Structural backing through legislation or classified government policies.
Long-Term Strategy vs. Public Perception
While public pension funds and institutional investors are increasing their Bitcoin exposure, politicians face a different reality.
Park praises Chief Investment Officers (CIOs) for their bold approach, as they are less influenced by short-term political sentiment.
“They think long-term and act in the public interest, even if it comes with personal risk,” Park notes.
For Trump, it all comes down to timing and optics. A well-timed Bitcoin purchase during a market dip could give him political leverage, while a poorly timed move could damage his reputation.
As long as Bitcoin stays above $60,000, it looks like the U.S. government will remain on the sidelines—at least for now.
