Trump Signs Executive Order for Strategic Bitcoin Reserve

U.S. President Donald Trump signed an executive order to establish a strategic bitcoin (BTC) reserve, which includes BTC seized by the government through law enforcement actions.

David Sacks, the White House crypto and AI czar, stated on X that the reserve will also encompass other coins forfeited in criminal or civil proceedings, emphasizing that no taxpayer money will be used to acquire BTC or other coins.

According to Arkham Intelligence, the U.S. government currently holds 198,000 bitcoins worth approximately $17.3 billion. Treating this as a reserve effectively removes over $17 billion in selling pressure from the market.

Despite this, bitcoin extended its losses, dropping to lows near $84,700, as investor frustration grew over the absence of new BTC purchases by the U.S. government. However, prices recovered to $87,600 at press time, with hopes that Trump will unveil a favorable crypto tax policy at Friday’s White House crypto summit.

Market Reactions

Valentin Fournier, Analyst at BRN

>The Executive Order disappointed some investors, stating the government won’t acquire assets beyond forfeiture. This uncertainty impacted Bitcoin, Ethereum, and Solana, leading to a 4% daily decline.

>Commerce Secretary Howard Lutnick is tasked with crafting a budget-neutral strategy for acquiring more Bitcoin, potentially indicating a hidden accumulation strategy by the U.S. government.

Dick Lo, CEO of TDX Strategies

>The initial disappointment stemmed from heightened investor expectations. However, the news is generally positive since a clear funding strategy for any new acquisitions was necessary. The distinction made between Bitcoin and altcoins reinforces this stance.

>Further positive announcements regarding crypto tax treatment may emerge from the Crypto Summit.

Andrew O’Neill, Digital Assets MD, S&P Global Ratings

>This executive order is mainly symbolic, marking the first formal recognition of Bitcoin as a reserve asset by the U.S. government. Currently, the reserve will only consist of BTC forfeited through legal processes. While acquiring additional BTC is possible under budget-neutral terms, no specific amount or timeline has been indicated.

Jeff Anderson, Head of Asia at STS Digital

>The market is reassessing risks now that the U.S. has indicated it won’t actively purchase BTC. The 30-day implied volatility index (BVIV) is down 6 vol points this morning.

This is a running list of comments from crypto market experts and will be updated regularly.