US President Donald Trump signed an executive order on Thursday to establish a strategic Bitcoin (BTC) reserve that includes BTC, seized by the US government through law enforcement measures.
Crypto of the White House and Ai Czar David Sacks said on X that the warehouse will also include other coins that are forfeited in criminal or civil trial while emphasizing that no taxpayer money will spend on acquiring BTC or other coins.
According to Arkham Intelligence, the US government currently has 198,000 bitcoins worth approx. $ 17.3 billion. To treat the same as reserve essentially takes over $ 17 billion in sales pressure from the market.
Still expanded Bitcoin losses and hit low close to $ 84,700, reflecting investor disappointment over the lack of new BTC purchases for the US government. However, prices have risen to $ 87,600 at the press time in the hope that Trump will announce a favorable crypto tax policy at Friday’s Crypto summit in the White House.
Here is what market pounds had to say about the strategic reserve.
Valentin Fournier, analyst at Brn
“The executive order has disappointed some investors, as it explicitly says the government will not acquire additional assets beyond those achieved by forfeiture. This lack of a clear acquisition plan has created confusion that weighs on the market mood and leads to a 4% daily decrease in Bitcoin, Ethereum and Solana.”
“Trade Secretary Howard Lutnick has been empowered to develop a budget neutral strategy to acquire additional Bitcoin. Given Lutnick’s strong ties to Bitcoin through his commitment to microstratey, this can signal a hidden accumulation strategy from the US government that potentially ignite a parabolic rally.”
Dick LO, CEO of Quant-Driven Digital Assets Trading Firm TDX Strategies
“Initial disappointment as the market had built high expectations that led to the message. However, the news is unequivocally positive: It would have been unrealistic to expect new to buy without it being used to buy Altcoins.”
“Potential additional positive messages coming from the Crypto summit: More favorable tax treatment against crypto.”
Andrew O’Neill, Digital Assets Managing Director, S&P Global Ratings
“The importance of this executive order is mainly symbolic as it marks the first time Bitcoin is formally recognized as a reserve active for the US government. Currently, the reserve will only include Bitcoin, already owned by the US government, specifically BTC lost through criminals or civilian procedures. The order undertakes to keep this BTC as a reserve asset without selling it.
“However, the order is considering the possibility of acquiring additional bitcoin for the reserve, provided it can be done in a budget neutral way. There is yet no indication of how much, if any, will be acquired or rather included a timeline.
Jeff Anderson, head of Asia at STS Digital, said in a telegram message:
“The market is prices of tail now that the US is not actively buying BTC. BVIV [the 30-day implied volatility index] are down 6 volumes this morning. “
This is an ongoing list of comments from the Crypto Market experts and is updated regularly.
