Crypto markets are anticipating key U.S. government decisions regarding digital currencies. According to recent reports, President Trump announced in January the creation of a "Strategic Bitcoin Reserve," aimed at purchasing large quantities of BTC as a national reserve asset. Legislation such as "#GeniusAtc " is expected to advance to regulate stablecoins, and "#CLARITY_ACT " to clarify the regulatory framework for crypto, in addition to digital market structure bills in Congress during January. This comes amid expectations that 2026 will be the "dawn of the institutional era" for crypto, with government support enhancing adoption, but risks such as volatility from trade policies and inflation remain.
Impact on the market......
Direct government support for Bitcoin could boost institutional confidence, with BTC expected to replace gold as a reserve asset, potentially reaching a long-term market capitalization of up to $34 trillion. While interest rate cuts in 2025 led to significant growth in $BTC, in 2026, a strategic reserve could bolster stability, particularly if regulatory legislation is passed to mitigate regulatory risks. However, if Trump's trade policies (such as tariffs) lead to global tensions, this could increase short-term volatility, as recently seen when BTC fell below $90,000 due to trade threats. Binance founder T-Marsteller also anticipates a Bitcoin "supercycle" in 2026, fueled by government policies.
Currencies that may be positively affected...
$BTC : As a major asset, it will benefit most from the Strategic Petroleum Reserve, with expectations of rising to $98,000 or more if there is a large government purchase, in addition to increased institutional adoption through ETFs and companies like #BlackRock . Legislation such as #GeniusAtc will boost long-term confidence. $ETH : It may indirectly rise thanks to the general regulation of crypto, especially in #Defi , if policies lead to lower bond yields. Other cryptocurrencies such as $SOL: will benefit from Web3 growth if market-structuring laws are passed, opening doors for innovation. Currencies that may be negatively affected… $BTC: If legislation is delayed or trade tensions escalate, it may decline by 5-10% in the short term, as has happened with regulatory concerns in the past. $XRP: Linked to international payments, it may be hurt by government trade wars, leading to negative volatility. Minor cryptocurrencies such as $DOGE : Sensitive to macroeconomic policies, it may decline if regulatory risks lead to capital flight. Despite the positive long-term outlook thanks to government support, the Bitcoin market remains susceptible to short-term volatility. Remember, trading carries risks, and always do your own research. What are your thoughts on the impact of government decisions on $BTC?
Do you expect BTC to rise by the end of 2026?