U.S. May Add Bitcoin and XRP to Crypto Strategic Reserves Soon

The US Crypto Reserve has resurfaced following pro-crypto Senator Cynthia Lummis’s statement to Elon Musk that Bitcoin (BTC) could pay off the United States’ debt in 20 years. The comments followed after Elon Musk praised BTC, saying that its energy cannot be faked the same way governments issue fiat currency with no backing.

Despite the resurgence in this talk, the odds of launch continue to fall on Polymarket, reflecting the general market view. Meanwhile, a whale-stacked short position for BTC was closing, signaling a turnaround.

U.S. Prepares For Crypto Strategic Crypto Reserve, Senator Lummis Supports

While discussions about the market structure bill had faded, Coinbase CEO Brian Armstrong was slowly watching it unfold. A few weeks ago, he noted this on X, poking fun at the former SEC Chair, Gary Gensler.

The U.S. government is reportedly planning to set up a strategic crypto reserve. However, the first step in altering the U.S. government’s stance on digital assets was securing the passage of the market structure bill. As previously mentioned, the goal of the US Crypto Strategic Reserve plan is to accumulate significant cryptocurrencies, including Cardano (ADA), Ethereum (ETH), Ripple (XRP), Bitcoin, and Solana (SOL).

According to Senator Cynthia Lummis, Bitcoin will form the heart of the financial system. Senator Lummis stated that the United States will utilize this reserve to settle its national debt in 20 years. Lummis told Elon Musk, “It is the wisest thing we can do,” in support of this.

Analysts, however, believed that the strategy was not limited to Bitcoin. XRP was considered the bridging currency in the new financial chain, with its payment rail system expanding even to Asia.

If the plan succeeds, it can redefine global crypto adoption and establish the US as a leading blockchain-based economic infrastructure.

Odds of Bitcoin Crypto Reserve in 2025 on Polymarket

Despite the hints, the likelihood had declined three times compared to August. This decline followed increasing doubts, but the recent news could change these declining odds.

Polymarket data showed that the chance of the U.S. opening a national Bitcoin reserve in 2025 declined by 36% in two months. The drop to 12% was the lowest since the year began.

Despite Cynthia Lummis raising these discussions, regulatory uncertainty and political caution could still be major hurdles. Specifically, the trade war between the United States and China may draw attention as it’s a more pressing issue, so as to reduce the likelihood of another market crash.

The drop in volume on the prediction market exceeded 4.4 million, indicating a decline in short-term trust regarding government-led Bitcoin adoption.

Some analysts, including Crypto Rand, still believe that 2026 and later could be the timeframes when the U.S. begins to show renewed interest in accumulating digital assets.

Bitcoin, XRP Price Performance

As the market sentiment began to change, a Bitcoin “insider” started selling off his new short positions. He first sold off the short position of $500 million.

Again, BTC was trading above a key level at $107K, with bears showing strength as indicated by the MACD. The price was below the EMA cross on the daily chart, though, suggesting that bulls had not yet taken over.

XRP, on the other hand, was trading around the midpoint of this year’s price range, as seen on the TradingView chart. If the altcoin reclaims $2.64 as support, it could target levels above $3, especially after the reemergence of the Crypto Strategic Reserve talks.

The crash in prices was prompted by Trump’s imposition of 100% tariffs on Chinese imports. Despite the whale’s activity indicating a possible change, the market remained unstable.