Crypto Market Pulse👀
President Trump signed an Executive Order to establish a Strategic Bitcoin Reserve👀
The Reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings. This means it will not cost taxpayers a dime.
It is estimated that the U.S. government owns about 200,000 bitcoin; however, there has never been a complete audit. The E.O. directs a full accounting of the federal government’s digital asset holdings.
The U.S. will not sell any bitcoin deposited into the Reserve. It will be kept as a store of value. The Reserve is like a digital Fort Knox for the cryptocurrency often called “digital gold.”
Premature sales of bitcoin have already cost U.S. taxpayers over $17 billion in lost value. Now the federal government will have a strategy to maximize the value of its holdings.
In addition, the Executive Order establishes a U.S. Digital Asset Stockpile, consisting of digital assets other than bitcoin forfeited in criminal or civil proceedings.
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In our view, this is the most important event in the history of $BTC and crypto👇
1) Dramatically reduces the likelihood the US government will some day "ban" bitcoin;
2) Dramatically increases the likelihood that other nations will establish strategic bitcoin/crypto reserves;
3) Accelerates the speed at which other nations will consider establishing strategic bitcoin reserves, because it creates a short-term window for nations to front-run potential additional buying by the US;
4) Makes it much harder for institutions - from national account advisor platforms to quasi-governmental agencies like the IMF - to position bitcoin as somehow dangerous or inappropriate to hold.
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So why are the prices down🤔?
Some market participants believe the Strategic Bitcoin Reserve doesn’t do anything because it’s just seized assets and there’s no buying.
True, there will be no buying today but we do expect them to add to their holdings after the competition with other countries kicks in.
It’s likely the US has 112k BTC or less because 95k belongs to Bitfinex and will be returned. It does not have the 207k to 220k BTC number that many news sites usually go with. This would put China in the pole position with 194k BTC.
Now, you can imagine why that won’t be acceptable😉
@DramatiObstacl That’s a fair point—nothing in markets or policy is ever 100% guaranteed. However, this move significantly shifts the probabilities in favor of long-term Bitcoin adoption rather than restriction. While short-term uncertainty remains, the broader trend is becoming clearer: governments are recognizing Bitcoin’s strategic value. The fact that the U.S. is formally acknowledging Bitcoin as a reserve asset is a huge step forward. And once geopolitical competition kicks in, the incentives for other nations to follow suit will only grow.
Also, keep in mind that $BTC is just the first use case of blockchain technology that they are acknowledging. We’re still in the early stages—comparable to the email phase of the internet. Altcoins will play a critical role in this evolution, just as new technologies emerged to shape the modern web. The recognition of Bitcoin as a strategic asset is likely just the beginning and today's summit is about to reveal this.