Cathie Wood Predicts Trump Administration’s Historic Bitcoin Accumulation for Strategic Reserve

In a bold forecast, Cathie Wood, the renowned founder of ARK Invest and often dubbed the “Queen of disruptive innovation,” suggests the Trump administration is poised to make a monumental move. To solidify its political standing and avoid becoming a “lame-duck president” following the upcoming midterm elections, the government is likely to transcend merely holding seized Bitcoin and embark on an active purchasing spree to bolster the nation’s strategic reserves.

From Seized Assets to Strategic Purchases: The Million BTC Goal

During a recent episode of the popular 《Bitcoin Brainstorm》Podcast, Wood elaborated on her prediction. “Currently, the Trump administration appears to be hesitant about actively purchasing Bitcoin. The existing reserves primarily stem from assets confiscated through law enforcement actions—a portion Trump has famously pledged ‘never to sell’,” she noted.

However, this hesitation is expected to wane. Wood anticipates a significant shift: “The original objective for this strategic reserve was to accumulate one million Bitcoins. I believe they will soon enter the market to acquire more.” This indicates a transition from passive accumulation via seizures to a proactive, market-driven acquisition strategy.

Cryptocurrency as Trump’s Political Lifeline

Wood posits that cryptocurrency has evolved into a crucial “political lifeline” for Donald Trump. With the looming midterm elections, a Republican defeat could significantly diminish his influence. Furthermore, Trump’s continued embrace of crypto is multifaceted, driven by his family’s expanding interests within the industry and the crypto community’s pivotal role in his electoral success. These factors, Wood argues, compel Trump to remain the “strongest backer” of the crypto space.

“The most crucial aspect is his desire to avoid being a ‘Lame Duck.’ Trump aims to achieve substantial progress in the next year or two, and he clearly perceives cryptocurrency as a vital pathway to the future.”

The Ascendant Political Power of the Crypto Industry

The US election cycle has underscored the cryptocurrency industry’s formidable rise as a political force. Political Action Committees (PACs) like “Stand With Crypto” have made substantial donations across various levels of US elections. Simultaneously, prominent industry figures, including Cathie Wood herself, have personally contributed to Trump’s campaigns.

The interaction between the crypto sector and the White House has also visibly intensified. Reports indicate that major crypto entities such as Coinbase, Tether, and Ripple even provided funding to assist in the renovation of the White House’s new banquet hall, symbolizing a deepening relationship.

Policy Initiatives and Future Outlook

The Trump administration has reciprocated this support with tangible policy actions. Beyond signing executive orders to establish a Bitcoin strategic reserve, it formed a specialized task force led by David Sacks—a renowned Silicon Valley venture capitalist and an influential figure in AI and crypto. The administration has also actively championed legislation, such as the “GENIUS Act,” aimed at establishing a clear regulatory framework for stablecoins.

Looking ahead, Wood also anticipates that the Trump administration will “ensure” cryptocurrency transactions receive tax exemptions. Specifically, she expects small transactions to be exempt from capital gains tax, thereby lowering the barrier for everyday use and paving the way for cryptocurrency to become a mainstream payment method.

Is the U.S. buying Bitcoin or not? Bessent’s inconsistent statements leave markets puzzled.