Bitcoin Market Reels From Historic Shift as US Recognizes BTC as a Strategic Asset

The cryptocurrency market is reeling from a historic shift with Bitcoin now being a recognized U.S. strategic asset.

The cryptocurrency market is reeling from a historic shift with Bitcoin now being a recognized U.S. strategic asset. As part of his sweeping economic agenda, President Donald Trump has issued an executive order preventing the government from selling its 200,000 BTC holdings, according to a recent research by global brokerage firm FBS.

Initially, the news sent Bitcoin soaring past $94,000. However, details of the plan have led to market volatility, with prices briefly dipping below $85,000 as investors question whether this marks the beginning of a new financial era or a strategic political maneuver.

From Euphoria to Volatility

When Trump first hinted at a government-backed crypto reserve on March 2, Bitcoin jumped over 10%, while Ether surged 13%. The market added over $300 billion in value within hours, as investors viewed the move as a strong endorsement of crypto adoption.

However, when the White House clarified that the reserve would only include confiscated Bitcoin Bitcoin The cryptocurrency market has seen a massive shift with the United States government now recognizing Bitcoin as a strategic asset. As part of his sweeping economic agenda, President Donald Trump has issued an executive order preventing the government from selling its 200,000 BTC holdings, according to a research by global brokerage firm FBS.

The move, which was initially reported by The Times, has sent Bitcoin soaring past $94,000. However, details of the plan have led to market volatility, with prices briefly dipping below $85,000 as investors question whether this marks the beginning of a new financial era or a strategic political maneuver.

Trump's administration has been an ardent supporter of cryptocurrency, and the president himself has frequently praised Bitcoin on social media. Earlier this year, Trump expressed optimism about the potential for crypto to revolutionize the U.S. dollar.

"We can't let other countries dictate the future of money," Trump stated during a press conference. "The U.S. dollar has been the reserve currency for a reason, and it's time to bring that strength back to our economy."

The executive order, which was approved by the president on Monday evening, directs the Treasury Department to begin mopping up available Bitcoin to add to the government's holdings. The president's advisors had presented the plan as a way to shore up the dollar's value and generate additional revenue for the U.S.

The move comes at a time when El Salvador has been praised for its early adoption of Bitcoin, though on a smaller scale. El Salvador's president, Nayib Bukele, recently announced that the country has no immediate plans to sell its 6,100 BTC, which was mined by government-sanctioned entities.

"El Salvador is small, but Bitcoin is big," remarked Bukele during a televised interview. "We are starting strong and will continue to build on this foundation."

The U.S. decision has also sparked reactions from other countries. Japan, a pioneer in crypto regulation, may consider similar policies, while European policymakers are discussing whether to integrate Bitcoin into reserve strategies to avoid being left behind.

Some geopolitical rivals, however, view the move with suspicion. China, which banned Bitcoin trading and continues to face sanctions from the U.S., is doubling down on its digital yuan initiative. Russia, already exploring crypto for sanctions evasion, might see the U.S. reserve as a reason to accelerate its own digital asset strategies.

Long-Term Impact: A Game Changer for Crypto?

Looking ahead, the U.S. Bitcoin reserve could fuel wider adoption. Standard Chartered has projected Bitcoin to reach $200,000 by 2025 and even $500,000 by 2028 under the right conditions. Institutional investors, spurred by government endorsement, are expected to accelerate their Bitcoin holdings.

Trump's move could also push regulatory agencies to fast-track approvals for more crypto ETFs, expanding access to Bitcoin and potentially other cryptocurrencies.