OpEd: From Digital Gold to National Treasure: Bitcoin’s Role in America’s Financial Future

Bitcoin hit the big time with ETFs. Now – it looks like Bitcoin will be the next global reserve asset. But the West could be looking at Bitcoin for more than a new investment class.

US President Trump hasn’t explicitly stated that Bitcoin will be the new anchor for his proposed Sovereign Wealth Fund (SWF) – but others are saying it’s going to be included in the asset mix.

Here is the situation – the West is underwater in a big way. Using the US as an example – the US treasury has to roll over at least $3 trillion in existing debt in 2025 – and borrow another $2 trillion to cover a massive budget shortfall.

Keep in mind that we are just talking about the US government – it isn’t the only entity in the global USD bond market!

Bitcoin – looks like the solution. It might seem odd – but a Bitcoin blast-off could be the savior of the Western financial system. It could also cement Bitcoin as the next global reserve asset.

The USA is BROKE!

The idea that the USA could have a SWF is laughable. The idea of Sovereign Wealth applies to nations like Norway or the UAE where a relatively small population produces far more profit than the nation needs. Both of the examples are energy exporting economies BTW.

No – the USA is the largest sovereign debtor in economic history. Both at a public and private level – the USA has debts so large they can never be paid back in practical terms. So the idea that the USA would actually have sovereign wealth is absurd.

What President McTrumper likely has in mind for the USA SWF is a global slush fund that supports his very new direction for US policy. We are looking at one of the largest political shifts ever in the USA.

The new US policy direction is both foreign and domestic – so McTrumper will need some cash to push his ideas forward. Enter the USA SWF (slush fund and more)!

Bitcoin Blasts Higher!

Bitcoin was looking pretty good – even during the “Biden” years. Despite an all out assault via the Gensler-led SEC – BTC prices rallied hard during “Biden’s” administration. You can’t keep a good thing down.

Now – it looks like all systems go for Bitcoin and the crypto complex.

Whatever happens with a USA SWF – Bitcoin is headed for 7 figures. We are not saying that the rally will be a smooth ride to BTC @ $1,000,000. Far from it. Cryptos are the mega beta asset that reacts to changes in global liquidity 24/7.

As we continue to warn – the risk of a global liquidity event that shocks markets is high. When people panic and sell – fundamentals don’t matter. The USD is still the benchmark for safety – and when fear hits – markets will buy USD and sell everything else.

Holding Bitcoin or any of the major cryptos is a great idea – but it has to be an unleveraged position. Volatility can hit anytime – and wipe a great position off the table forever. We fully believe that cryptos will be the best asset class for the rest of the decade – provided you can keep the positions alive.

About That USD…

In the words of Howard Lutnick – the new USA SWF would, “monetize the asset side of the US balance sheet,” over the next year. He is McTrumper’s pick for Secretary of Commerce – and just got approved for the appointment.

Lutnick loves cryptos BTW – so that helps anyone who wants to see cryptos blast off to the moon.

The USD is a nuanced issue for the USA and President McTrumper. While he vocally supports a strong USD – he likely knows that it will be terrible for the US economy – especially if it rallies and holds over the 110 level on the DYX.

From the looks of it – the USD is headed higher in 2025.

According to new US Treasury Secretary Scott Bessent:

“The strong-dollar policy is completely intact with President Trump…We want the dollar to be strong. What we don’t want is other countries to weaken their currencies, to manipulate their trade.”

So there you have it – the US is happy to stomach a stronger USD as long as it means other countries keep their hands off the devaluation button. Nice idea – it will never happen.

We know – with 100% certainty – that the world’s #2 economy (China) will manipulate the Yuan lower under any and all circumstances. As the new US administration turns the heat up on China – it’s a given that China will drop the Yuan against the USD.

The EU is in a similar position. In fact – it’s difficult to see a scenario that doesn’t involve a way-too-strong USD in the coming years. Until we see the big USD devaluation.

1985 All Over Again?

As we mention often – we are heading towards an intentional USD devaluation. In fact – the USA SWF could be a big part of the plan. As Lutnick said – the USA SWF will monetize the USA’s assets, which may mean a pile of alternative assets under US control.

The USA can create USDs at will – and spend them on whatever. If that whatever is cryptos – we could be looking at the next leg of the biggest bull market in history. Cryptos could be the next global reserve asset – with the US taking the lead by accumulating huge amounts.

When the USA has to devalue the USD – the USA SWF could act as a stop-gap that cushions the US economy from the USDs loss of reserve status.

As we wrote here:

Op-Ed: The Wall of Money Could Hit Markets Anytime

“Today, the FED needs the same kind of coordinated global agreement (Plaza Accord) to reliquefy markets, and knock down the USD vs. all the other global reserve currencies. This time around it may not take the form of a fancy-pants meeting at the Plaza Hotel with career bureaucrats gladhanding.”

Don’t believe us?

Listen to this smarty pants tell the story:

It’s happening – the situation isn’t a question of ‘if’ – just a matter of timing.

The New Crypto Order

Cryptos are at the heart of the next global economy. It’s taking shape right now. While we don’t know for sure – we think that the end of the past WW2 global monetary order will be a bumpy ride.

Bitcoin is headed to 7 figures in USD terms. It can’t be stopped (except maybe by the quantum apocalypse). Of course, there are no guarantees on time frame – or what other tokens might come along as Bitcoin and perhaps a few other tokens become global reserve assets.

We think there could be more to the USD SWF than meets the eye. Time will tell if Trump&Co. are using BTC as the ultimate bailout for the Western financial system…