From coindesk By Omkar Godbole, Shaurya Malwa| Edited by Parikshit Mishra
What to know:
- U.S. President Donald Trump has signed an executive order to establish a strategic bitcoin reserve, which will include BTC seized by the U.S. government through law enforcement actions.
- The U.S. government currently holds 198,000 bitcoins worth about $17.3 billion, and this move essentially removes over $17 billion in selling pressure from the market.
- Opinions about the reserve are mixed with some calling it a symbolic move while others hailing it as unambiguously positive.
U.S. President Donald Trump signed an executive order Thursday to establish a strategic bitcoin (BTC) reserve that includes BTC seized by the U.S. government through law enforcement actions.
White House crypto and AI czar David Sacks said on X that the stockpile will also include other coins forfeited in criminal or civil proceedings while stressing that no taxpayer money will spent on acquiring BTC or other coins.
According to Arkham Intelligence, the U.S. government currently holds 198,000 bitcoins worth about $17.3 billion. Treating the same as reserve essentially takes out over $17 billion in selling pressure from the market.
Still, bitcoin extended losses, hitting lows near $84,700, reflecting investor disappointment over the lack of new BTC purchases for the U.S. government. Prices, however, have recovered to $87,600 at press time in hopes that Trump will announce a favorable crypto tax policy at Friday's White House crypto summit.
Here is what market pundits had to say about the strategic reserve.
Valentin Fournier, analyst, BRN
"The Executive Order has disappointed some investors, as it explicitly states that the government will not acquire additional assets beyond those obtained through forfeitures. This lack of a clear acquisition plan has created confusion, weighing on market sentiment and leading to a 4% daily decline in Bitcoin, Ethereum, and Solana."
"Commerce Secretary Howard Lutnick has been authorized to develop a budget-neutral strategy for acquiring additional Bitcoin. Given Lutnick's strong ties to Bitcoin through his involvement with MicroStrategy, this could signal a hidden accumulation strategy by the U.S. government, potentially igniting a parabolic rally."
Dick Lo, CEO, TDX Strategies
"Initial disappointment as the market had built up high expectations leading up to the announcement. However, the news is unambiguous positive: It would have been unrealistic to expect new buying without a plan on how it would be funded; An important distinction has been made between Bitcoin and the rest of crypto, i.e. not a single dollar will be spent buying altcoins."