Cathie Wood Forecasts Trump May Purchase Bitcoin for US Reserve Before Midterms

In a recent episode of ARK Invest's "Bitcoin Brainstorm" podcast aired on January 8, CEO Cathie Wood shared her belief that the Trump administration may take steps beyond simply maintaining seized Bitcoin and could start buying BTC to create a US strategic reserve. She emphasized that this change could act as a significant turning point for the markets and other governments.

Key Takeaways

Cathie Wood predicts that the Trump administration could begin purchasing Bitcoin to build a US strategic reserve.
She believes that this move could catalyze institutional interest and impact global financial markets.
The approach may be driven by political incentives leading up to the 2026 midterm elections.
Wood emphasizes the potential consequences for other countries' reserve policies and emerging market currencies due to US Bitcoin purchases.

The Emerging Institutional Interest in Bitcoin

Wood discussed the current state of institutional interest in Bitcoin, describing it as "just beginning." She noted that if the US began actively purchasing Bitcoin instead of only adding confiscated holdings to a strategic reserve, it could act as a catalyst for the market. "We've seen very little institutional buy-in; it is just starting," said Wood. "If the US were to buy Bitcoin, it may reignite interest in its scarcity, especially as we approach a limit of 21 million coins, with only one million remaining to be mined."

In her conversation, Wood remarked that the government's current approach has primarily involved confiscated Bitcoin and contrasted this with a more ambitious vision of achieving a strategic reserve of one million BTC. She expressed optimism that a pivot toward purchasing could be on the horizon.

The Midterms: A Possible Incentive for Bitcoin Purchases

Linking this possibility to political motivations, Wood pointed out that as the 2026 US midterm elections approach, Trump might be eager to maintain momentum and avoid being seen as politically inactive. “President Trump does not want to be a lame duck,” she suggested. She believes he might collaborate with his crypto and AI advisors to initiate significant actions related to Bitcoin.

Wood indicated that while there has been hesitation regarding the purchase of Bitcoin for the reserve, she feels confident that buying will indeed commence. Additionally, she highlighted the President's various constituencies, arguing he has many reasons to embrace cryptocurrency, especially given the crucial timing of the midterms.

The Implications of US Bitcoin Purchases on Global Markets

When discussing how such purchases might be implemented, Wood maintained that any strategy for accumulating Bitcoin would need to be budget-neutral but did not elaborate on specific mechanisms. She asserted that US involvement in purchasing Bitcoin would have repercussions outside the domestic market, potentially prompting other nations to reassess their own reserve policies.

“It’s important to note that we expected other countries to adopt Bitcoin sooner,” Wood said. “If the US officially indicates its intent to buy, it may prompt many governments to reconsider their dependence on the dollar and explore the idea of including Bitcoin in their reserves.”

If this shift occurs, Wood suggested that emerging market currencies might come under renewed pressure, and a move towards Bitcoin might lead to increased volatility in weaker fiat currencies. She views this type of action from Washington—transitioning from merely holding confiscated BTC to actively engaging in the market—as significant.

At the time of this writing, Bitcoin was trading at $90,578.

Bitcoin price chart
Bitcoin needs to surpass the 0.618 Fibonacci level, according to the 1-week chart | Source: BTCUSDT on TradingView.com