Bitcoin (BTC) Price Volatility Spikes to Its 2024 High as Trump Establishes Strategic Crypto Reserve

Bitcoin’s price volatility spiked to its highest level of the year last Monday and has remained elevated, signaling persistent market jitters.

President Trump has signed an executive order establishing a Strategic Crypto Reserve and directing federal agencies to conduct a full audit of the government’s digital asset holdings, according to an official statement released by the White House on Monday.

The move comes as no surprise, considering Trump’s strong pro-crypto stance throughout his presidency, which has seen him repeatedly tout Bitcoin and other digital assets.

Earlier this year, Trump signaled his interest in establishing a U.S. crypto reserve, an idea that was met with enthusiasm from industry figures like Shapeshift CEO Eric Antonopolous, who believed it could be a pivotal moment for the market.

The president has also appointed David Sacks, a renowned entrepreneur and investor, as his Crypto Czar to oversee the development of U.S. crypto policy. Sacks, known for his outspoken views on technology and economics, is expected to play a key role in shaping the future of digital assets in the U.S.

President Trump signs an executive order establishing a Strategic Crypto Reserve and directing federal agencies to conduct a full audit of the government’s digital asset holdings.

The president's signature marks a significant step in the U.S.’s integration of crypto into its financial strategy.

According to Bitcoin Treasuries data, the U.S. government currently holds around 200,000 BTC, which at the time of signing has been estimated at $17 billion.

However, the president's statement did not specify the exact amount of crypto that will be included in the reserve, nor did it disclose the planned funding mechanisms.

Earlier this year, rumors circulated about the possibility of the U.S. seizing assets from bankrupt crypto firms to form the crypto reserve. Alternatively, some analysts suggested that the administration might confiscate crypto acquired through criminal or civil asset forfeiture to fund the initiative.

Moreover, President Trump announced that he will be hosting a “crypto summit” later this month. Top executives from Coinbase and Kraken are expected to attend the event, which aims to encourage innovation in the U.S. digital asset space and further solidify regulatory clarity.

The president's statement comes amid a period of heightened volatility in crypto markets, sparked by a broader equity market downturn due to new tariffs announced by the Trump administration.

The trade policy uncertainty has pushed investors toward traditional safe-haven assets, with gold surging last Tuesday while Bitcoin experienced continued selling pressure.

Despite the short-term pullback, Bitcoin remains a focal point in global markets as the U.S. government integrates digital assets into its financial strategy. However, for traders, the key question remains: will Bitcoin reclaim its previous highs, or is further downside ahead?