US President Donald Trump signed an executive order on Thursday to establish a strategic Bitcoin (BTC) reserve, including BTC seized by the US government through law enforcement measures.
White House Crypto and I the Zar David Sachs said the stockpile also includes stockpile or other coins confiscated in civil lawsuits, emphasizing that taxpayer money will not be spent on acquisition of BTC and other coins.
According to Arkham Intelligence, the US government currently holds 198,000 bitcoins worth around $17.3 billion. The same treatment as reserves is essentially more than $17 billion in sales pressure from the market.
Still, Bitcoin has extended its losses and hit a low of nearly $84,700, reflecting investors' disappointment over the US government's lack of new BTC purchases. However, the price was recovered to $87,600 at press time, in hopes of Trump launching a lucrative crypto tax policy at Friday's White House Script Summit.
Here's what market experts had to say about strategic reserves:
Valentin Fournier, Analyst, BRN
“The government is disappointing some investors as it explicitly states that the government will not acquire additional assets beyond what it has been obtained through confiscation. This lack of clear acquisition plans will cause confusion, squeeze market sentiment and lead to a daily 4% decline in Bitcoin, Ethereum and Solana.”
“Commerce Secretary Howard Lutonic is permitted to develop budget-neutral strategies to acquire additional Bitcoin. Given Rutonic's strong connection to Bitcoin through his involvement in micro-tactics, this could indicate a hidden accumulation strategy by the US government, which could potentially set fire to parabolic gatherings.”
Dick Lo, CEO, TDX Strategies
“The initial disappointment was as the market raised high expectations leading up to its announcement. However, the news is clear positive. It would have been unrealistic to expect a new purchase without a plan for fundraising.
“A further positive announcement that could come from the Crypto Summit: More favorable tax treatment for cryptography.”
Andrew O'Neill, managing director of digital assets at S&P Global Ratings
“The importance of this executive order is largely symbolic, as this is the first time that Bitcoin has been formally recognized as a reserve asset for the US government. Currently, the reserve only includes Bitcoin already owned by the US government, particularly BTC that has been confiscated through criminal or civil lawsuits. This order promises to retain this BTC as a reserve asset without selling it.
“However, if orders can be made in a budget-neutral way, we will ponder the possibility of getting additional Bitcoin for spares. If there are, no matter how many indications we get, the order clearly distinguishes between Bitcoin and other digital assets.
Jeff Anderson, Asia Head of STS Digital
“The market is repricing tail risks as the US does not actively purchase BTC. BVIV [the 30-day implied volatility index] I've been down 6 vol points this morning. ”
Coinstash co-founder Mena Theodorou
“Trump's signature of the Executive Order for Strategic Crypto Preparation shows a major shift in the US government's approach to digital assets. It will establish strategic preparations for digital assets such as Bitcoin and create digital asset stockpiles for other cryptocurrencies, such as XRP, ADA, ETH, and SOL, while recognizing its value as a hedge against inflation.”
“But investors should not go any further. This executive order will not see immediate purchases of new assets, instead it will manage assets seized primarily as proceeds from crime.
“This initiative highlights its long-term commitment to digital assets and could potentially boost institutional adoption, where the government does not have to purchase additional holdings for this stockpile. As the market responds to this announcement, it was liquidated from the Cleipt market, with over $225 million in the 60 minutes after the announcement.”
Sean Farrell, head of Fundstrat's digital asset strategy
“They abolish the stupid idea of using taxpayer money to earn BTC. I love corn, but we shouldn't engage in such behavior while carrying out a huge deficit. The secondary effect of this is more important than the supply effect of 200k is being taken away from the market (ESP in states that run ESP), and we will see other nations moving to execute potential bids in the future. [It] It probably justifies the assets of institutional investors still on the fence. ”
Bitise Asset Management, Head of Alpha Strategies
“Next, thank you for playing, there's nothing strategic about EO strategic reserves.”
Danny Chung, Tranchess, co-founder
“While some argue that disclosure of purchase restrictions could potentially reduce market momentum, the real importance goes beyond short-term price action. Bitcoin Holdings, the US government, sets a strong precedent not only for sovereign entities, but for businesses, financial institutions and institutional investors.”
“To date, Bitcoin as a national protected asset has been associated primarily with El Salvador, a pioneering yet relatively small player at the global stage. When the US step into this space, it opens the door for other countries to comply with the lawsuit.
Ryan Chow, CEO, Solv Protocol
“Bitcoin's status asset class will be confirmed by Bitcoin asset class as it will encourage other governments, financial institutions and companies to develop Bitcoin financial services. As reserves grow, the infrastructure of Bitcoin financial services must follow, including wallet solutions, on-chain payment frameworks and powerful rails between Bitcoin and Fiat systems. This reserve is a speculative asset, and therefore will become recognized as a legitimate macroeconomic reserve tool,” he said.
This is a run list of comments from crypto market experts and is updated regularly.
