In response to the ongoing global tariff tensions and market volatility, the Trump administration has kindled a fresh beacon of hope for cryptocurrency investors with an announcement of potential plans to purchase Bitcoin using tariff revenue. With Bitcoin currently trading at 25% off its peak value, the prospect of the U.S. government buying into the cryptocurrency market at a reduced rate using tariff funds is a tantalizing proposition.
Last month, U.S. President Donald Trump took a major step towards cryptocurrency adoption by signing an executive order to establish a strategic reserve of digital tokens owned by the government. Furthermore, he directed the U.S. commerce and treasury secretaries to develop strategies for expanding the government’s Bitcoin holdings, with the caveat that these strategies should not result in additional costs for U.S. taxpayers.
One such strategy under consideration is the utilization of revenue generated from tariffs to purchase Bitcoin. This approach would enable the U.S. to bolster its Bitcoin reserves without the need for additional borrowing or the imposition of new taxes. Although discussions are preliminary, this development signifies a shift in the government’s approach to managing national wealth.
Senator Cynthia Lummis is also contributing to the dialogue with her proposed “Bitcoin Act of 2025”. The bill advocates for a re-evaluation of the value of U.S. gold certificates, which currently trade below the actual value of gold. Through this re-evaluation, Lummis hopes to generate additional funds for Bitcoin purchases, thereby establishing a new form of reserve.
Meanwhile, Bitcoin has demonstrated a resurgence in strength, recovering from a recent downturn. The cryptocurrency’s value has surged by 15%, with it currently trading around $85,350 and boasting a market capitalization of $169 trillion. Presently, Bitcoin is maintaining a position above $84,000 and demonstrating resilience above the 100-hour simple moving average. The formation of an ascending trend line with a support level around $85,200 suggests that buyer momentum remains strong.
Looking forward, Bitcoin is expected to encounter resistance, with the first hurdle anticipated around the $85,800 mark, followed by the $87,200 level. Should Bitcoin successfully navigate these obstacles, there is a potential for its value to climb even further, possibly reaching the $90,000 mark.
In summary, the prospect of the Trump administration using tariff revenue to purchase Bitcoin is a game-changing development in the world of cryptocurrency. This, coupled with the continued strength of Bitcoin despite market volatility, signals an exciting future for crypto investors worldwide.
