
On Feb. 3, President Trump announced plans to create a US sovereign wealth fund, a national investment vehicle designed to generate and distribute assets for American citizens. Trump signed the executive order at a White House event directing Treasury Secretary Scott Bessent and Secretary of Commerce Howard Lutnick, who are both pro-crypto, to “begin a process that will hopefully result in the creation of an American sovereign wealth fund.” “We’re going to create a lot of wealth for the fund,” Trump told reporters before adding, “And I think it’s about time that this country had a sovereign wealth fund.” The fund “will be a combination of liquid assets, assets that we have in this country as we work … to bring them out for the American people,” said Bessent, who added that it will be set up within the next 12 months, according to NBC. Bitcoin Backing? The fund could be potentially used to acquire strategic assets such as a potential takeover of the Chinese social media platform TikTok , alluded Lutnick. It could also leverage the US government’s massive purchasing power to gain equity in companies. “The extraordinary size and scale of the U.S. government and the business it does with companies … should create value for American citizens,” Lutnick said. Other countries with large sovereign wealth funds include Norway, China, Saudi Arabia, Australia, Iran, and Russia. In reaction to the news, Wyoming Senator Cynthia Lummis hinted that the fund could be used to buy Bitcoin. This is a ₿ig deal. https://t.co/ZShfQcEGwc — Senator Cynthia Lummis (@SenLummis) February 3, 2025 However, if the fund does include BTC, it is likely to come from the stash that the United States already holds rather than buying more. According to Blockchain.com, an FBI-owned address linked to Silk Road seizures still holds 69,370 BTC worth around $6.8 billion at current market prices. Total US holdings exceed 207,000 BTC worth more than $20 billion, according to BiTBO. The US will buy Bitcoin. Trump just announced the creation of a US Sovereign Wealth Fund. It will be headed by Secretary of Commerce @howardlutnick and Treasury Secretary @ScottBessent528 . Both like Bitcoin. I’d say there’s a 100% probability they buy Bitcoin. — Wayne Vaughan (@WayneVaughan) February 3, 2025 BTC Price Recovers Crypto markets have recovered since the Trump tariffs were suspended on Monday. BTC reclaimed $102,000 in an intraday high but has since retreated back to around $99,000 at the time of writing, as the bounce may have been short-lived. AI and real-world asset tokenization altcoins were also surging, but Ethereum remained lackluster, failing to top $3,000 despite an endorsement from Eric Trump . The post Trump Approves US Sovereign Wealth Fund, Will it Buy Bitcoin? appeared first on CryptoPotato .
Crypto Potato
You can visit the page to read the article.
Source: Crypto Potato
Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of BitMaden. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.
Ethereum’s ‘Ultra Sound Money’ Narrative Fades, But Key Metrics Signal Growth Potential

Ethereum’s ‘ultra sound money’ narrative has been losing strength recently, as its total supply has hit an all-time high, and the staking ratio has declined by 1% since last November. However, despite these unfavorable supply-side conditions, new data suggests that ETH still holds strong potential for an upward movement. Ethereum’s Market Outlook According to CryptoQuant’s latest analysis , there are several factors at play. Firstly, Ethereum’s realized price currently stands at approximately $2,200, which is notably lower than its market value of $2,600. This figure reflects the average acquisition cost of all ETH holders and acts as a key support level. With MVRV calculated using the realized price slightly exceeding 1, Ethereum appears to be in a highly undervalued state. Additionally, the number of long-term Ethereum holders who have accumulated and never sold is rising quickly, which mirrors a trend seen in Bitcoin. Although some whale investors may have exited during the recent downturn, it appears that these permanent holders have absorbed the selling pressure. In fact, a cohort of whales holding 10K-100K ETH have bought more than 600,000 ETH in the past week alone. Another key factor is that Ethereum’s futures market is experiencing reduced selling pressure. The net market price trading volume chart indicates that although Ethereum’s price has dropped since its $4K peak in November, selling volume has declined to even lower levels. This implies that while prices have decreased, buying interest is gradually strengthening. To top that, major institutions are aggressively increasing their Ethereum holdings. Companies such as BlackRock (100,535 ETH worth around $276 million), Cumberland (62,381 ETH worth $174 million), and Donald Trump’s World Liberty Financial (WLFI) have continued buying during the downturn. This large-scale accumulation is playing a key role in stabilizing the market. Hence, CryptoQuant concluded that although the leading altcoin is currently facing supply-side challenges, such as rising total supply and a declining staking ratio, strong demand factors remain in play. While price movement may remain sideways for a few months due to macroeconomic uncertainties, Ethereum’s long-term potential remains intact. Exchange Reserves Decline Despite the choppy price action, Santiment data revealed that 9.63 million ETH, worth $26 billion, are currently held in exchange wallets. This figure is the lowest since August 2024. Typically, when investors withdraw assets from exchanges, it signals confidence and reduces selling pressure, thereby lowering the risk of major price drops. Analysts also believe Ethereum’s future trajectory will largely depend on Bitcoin’s stability and ability to reclaim its all-time high. Besides, CoinShares recently reported that Ethereum led weekly crypto inflows for the first time in 2025 as it attracted nearly $800 million, nearly double the $407 million that flowed into Bitcoin-related products. The post Ethereum’s ‘Ultra Sound Money’ Narrative Fades, But Key Metrics Signal Growth Potential appeared first on CryptoPotato . Crypto Potato

Crypto Insiders Debate: Is Pepe Unchained, Wall Street Pepe, or Pepeto the Next 100x Meme Coin?
The rise of frog-themed cryptocurrency projects is rapidly becoming one of the most discussed trends Crypto Potato