• Bitcoin has climbed back above the $90,000 mark on Wednesday.
• The upcoming crypto summit at White House on March 7 can act as a catalyst.
• Arthur Hayes believes Bitcoin’s drop signals slowdown in U.S. government spending.

Bitcoin’s price has surged by over 8%, crossing the $90,000 mark. After a week of volatility, Bitcoin looks set to continue its upward momentum. This latest price jump also comes just before an announcement from Donald Trump’s Commerce Secretary, Howard Lutnick. Lutnick affirmed that Trump will introduce a U.S. strategic Bitcoin reserve at Friday’s White House crypto summit.

The summit will assemble key crypto industry leaders and founders. Its aim will be on developing a regulatory framework for the crypto space. Of note, last weekend, Bitcoin and other major cryptocurrencies, including Ripple’s XRP, Solana, and Cardano, all experienced sharp price increases. This happened after Trump revealed his plans to create a U.S.-focused crypto reserve on his Truth Social account.

“The President definitely thinks that there’s a Bitcoin strategic reserve. A Bitcoin strategic reserve is something the President’s interested in. He spoke about it all during the campaign trail, and I think you’re going to see it executed on Friday,” Lutnick told The Pavlovic Today.

Analyst Hayes Predicts Possible Bitcoin Dip to $75K Despite Surge

However, Arthur Hayes, co-founder of BitMEX  is predicting that Bitcoin may hit $75,000 before completely recovering. He also pointed to global liquidity issues, such as China holding back its monetary stimulus, which could impact both traditional and crypto markets. 

In spite of these short-term challenges, Hayes remains positive about Bitcoin’s long-term potential. He anticipates a possible price surge to $1 million in the coming years. Hayes also projected that while Bitcoin’s dominance will grow, altcoins will follow as well. 

Strategic Bitcoin Reserve: Hayes Warns of Potential ‘Market Disruption’

Hayes also discussed his views on a Bitcoin “strategic reserve”. He clarified that while short-term gains from such a reserve could boost Bitcoin’s price, the long-term effects might not be as positive. 

Related: Cardano’s 2025 Surge: Why Trump’s US Crypto Reserve & Whales Back ADA

Hayes argued that if the U.S. government buys a large amount of Bitcoin, it could eventually sell it for political reasons, making Bitcoin a political tool rather than a stable financial asset. This unpredictability could harm Bitcoin’s stability.

Neutral Reserve Asset: Hayes Advocates Gold-Like Role for Bitcoin

For Bitcoin to effectively play a strategic role in U.S. policies, it should be used as a neutral reserve asset, similar to gold, with the U.S. dollar as the trading currency. 

Related: El Salvador to IMF: Bitcoin Buys To Continue Despite Loan Terms

This strategy, he asserts, could help the U.S. maintain its global influence while using Bitcoin as a store of value for global trade. Though the idea of the U.S. government acquiring one million Bitcoin might sound appealing, Hayes advised caution that the logistics of purchasing such a huge amount could cause market disruption.