White House Eyes Gold-to-Bitcoin Move to Dominate the Crypto Market

White House Considers Bitcoin Acquisition Using Gold Reserves

According to Forbes, the White House is exploring the possibility of using U.S. gold reserves to purchase Bitcoin. Bo Hines, the executive director of the president’s council of advisers on digital assets, revealed this strategy during an interview on the "Crypto in America" podcast. He stated that leveraging gold holdings could be a budget-neutral way to acquire Bitcoin, aligning with President Donald Trump’s vision of making the U.S. a "bitcoin superpower."

Senator Cynthia Lummis has reintroduced her Bitcoin Act of 2025, proposing that the U.S. acquire 1 million Bitcoin over five years by selling Federal Reserve gold certificates. This move would represent approximately 5% of the total Bitcoin supply. President Trump has also expressed his commitment to cryptocurrency, emphasizing its potential to enhance privacy, security, and economic growth during a pre-recorded message at a crypto conference.

"Bitcoin is rewriting the rules of wealth creation and economic freedom for all—a truth President Trump recognized at the Digital Assets Summit by vowing to make the U.S. a ‘bitcoin superpower,’" said Cory Klippsten, CEO of Swan Bitcoin.

Despite Bitcoin's current stagnation at around $85,000, market analysts remain optimistic about its long-term potential. Ed Hindi, CIO at Tyr Capital, predicts that both Bitcoin and gold will outperform other asset classes in the coming months.

Key Insights
U.S. may use gold reserves to buy Bitcoin.
Senator Lummis proposes acquiring 1 million Bitcoin over five years.
Bitcoin price currently stagnates at $85,000.

Misleading Narratives in the Crypto Market

Cointelegraph reports that misleading narratives continue to dominate the cryptocurrency market, often driven by speculative sentiment rather than on-chain data. CryptoQuant analyst "Onchained" highlighted that claims of Bitcoin long-term holders capitulating are not supported by data. Instead, metrics like the Inactive Supply Shift Index (ISSI) show no significant selling pressure from long-term holders.

Glassnode, another analytics platform, corroborates this, noting subdued activity among long-term holders and a decline in sell-side pressure. Analysts are also debating the relevance of the traditional four-year Bitcoin cycle, with some suggesting that the market is transitioning to longer cycles influenced by macroeconomic factors and regulatory changes.

"Crypto has moved in four-year cycles since its earliest days. But the change in DC introduces a new wave that will play out over a decade," said Matt Hougan, CIO of Bitwise Invest.

Despite these challenges, the market remains dynamic, with analysts like Ki Young Ju predicting a bearish or sideways trend for Bitcoin over the next 6-12 months.

On-chain data contradicts claims of long-term holder capitulation.
Debate over the relevance of Bitcoin's four-year cycle continues.
Analysts predict a bearish or sideways market trend in the near term.

Bitcoin Price Trends Amid Market Uncertainty

The Economic Times reports that Bitcoin has fallen below $84,000 due to rising geopolitical tensions and macroeconomic uncertainties. This marks a significant decline from its earlier highs, with the broader crypto market also experiencing a downturn. Analysts attribute this to factors such as trade wars and fiscal policy uncertainties.

Despite the bearish trend, some experts view this as a temporary correction rather than a long-term decline. The current market conditions have also created opportunities for retail investors to "buy the dip," according to market observers.

Bitcoin Price	Market Sentiment
Below $84,000	Bearish

Ethereum Whales Capitalize on Price Dip

TradingView highlights that Ethereum whales have taken advantage of the recent price dip, purchasing over 120,000 ETH worth approximately $236 million in just three days. Ethereum's price has struggled to stay above $2,000, currently trading at $1,988. Despite this, large-scale investors see the dip as an opportunity to increase their holdings.

Data analytics platform Lookonchain tracked a whale who bought 7,074 ETH worth $13.8 million, further demonstrating confidence among major investors. Analysts suggest that such accumulation by whales often indicates market confidence and could influence future price trajectories.