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President Donald Trump is set to announce the creation of a U.S. strategic Bitcoin reserve at the White House crypto summit on Friday, according to Commerce Secretary Howard Lutnick. He confirmed that Bitcoin would have a unique status in the reserve, while other cryptocurrencies, including Ethereum, XRP, Solana, and Cardano, would be “treated positively, but differently.” Trump previously mentioned the plan on Truth Social, stating that Bitcoin and Ethereum would be at the heart of the reserve. The proposal has divided the crypto community, with Coinbase CEO Brian Armstrong arguing that “Just Bitcoin would probably be the best option,” while investment firm Bernstein questioned the rationale behind including altcoins.

The upcoming announcement has already impacted the market, with Bitcoin surpassing $90,000 after falling below $85,000 earlier in the week. The broader crypto market rebounded past a $3 trillion valuation, reversing a decline that followed the $1.4 billion theft from Bybit. Trump’s executive order directing officials to support the “responsible growth of digital assets” is seen as a major shift in policy after years of stricter regulations. Trump has positioned his administration to be crypto-friendly, stating that the reserve will “elevate this critical industry after years of corrupt attacks by the Biden Administration.”

The White House crypto summit, chaired by AI and Crypto Czar David Sacks, will bring together key industry figures, including Armstrong, Kraken CEO Arjun Sethi, MicroStrategy Chairman Michael Saylor, Multicoin Capital managing partner Kyle Samani, and Paradigm co-founder Matt Huang. The summit will effectively replace the previously planned “crypto council,” which was scrapped due to internal disputes within the industry. As Trump had campaigned on creating a Bitcoin reserve, Lutnick indicated that the plan would be finalized this week.

Markets have been reacting not only to the upcoming crypto announcement but also to broader economic concerns. Trump’s tariff policies have drawn attention, with some analysts warning that they could increase recession risks. Lutnick suggested that tariff adjustments might be announced as early as today. Trump, addressing Congress, acknowledged that his trade policies could cause “a little disturbance, but we’re okay with that.” Greg Magadini, director of derivatives at Amberdata, said , “Like the rest of the equities market, we’re starting to price in the potential for a recession.”

The Federal Reserve Bank of Atlanta has projected that the U.S. economy will shrink at an annualized rate of 2.8% in the first quarter. A slowdown in government spending, partly due to cost-cutting measures led by Elon Musk’s White House efficiency initiative, has contributed to concerns about weaker economic growth. Brian Rudick, head of research at GSR, noted that the Department of Government Efficiency’s actions were effectively working as “anti-stimulus.”

The strategic Bitcoin reserve is expected to be a major discussion point at the summit, alongside regulations and economic policies. With Bitcoin’s price rallying and investors closely watching developments, the impact of Trump’s crypto strategy is already being felt across financial markets.