President Trump Officially Creates a Strategic Bitcoin Reserve

The President of the United States – Donald Trump has officially made the first move in creating a strategic crypto reserve. The announcement was made by David Sacks – White House-appointed 'Crypto Czar' – on X, earlier today.

President Donald Trump has officially made the first move in creating a strategic crypto reserve. The announcement was made by David Sacks – White House-appointed ‘Crypto Czar’ – on X, earlier today. It stated that President Trump has signed an executive order to create a Strategic Bitcoin Reserve.

It stated,

“Just a few minutes ago, 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.”

The US is not Bitcoin bullish like El Salvador

In a not bullish move, the announcement stated that the United States would not be buying Bitcoin (BTC) or any other cryptocurrencies. The reserve, however, will consist of cryptocurrencies seized or forfeited in either civil or criminal proceedings.

This move is in direct contradiction to majority market sentiment, with many expecting the United States to follow El Salvador’s footsteps. The country has been actively purchasing Bitcoins over the past few years, with its strategic reserve now holding over 6,102 BTCs.

While the order does not give the US the green light to purchase Bitcoin, it does give the Treasury the approval to develop “budget-neutral strategies for acquiring additional bitcoin”. These strategies are subjected to carrying “no incremental costs on American taxpayers.” The Crypto Czar said,

“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.”

Bitcoin and altcoins are not the equal!

Furthermore, Sacks also unveiled the U.S Digital Asset Stockpile, which would consist of altcoins. The President had previously announced that the reserve would include cryptocurrencies like XRP, Cardano (ADA), Ethereum (ETH), and Solana (SOL). This, too, would be made up of cryptocurrencies “forfeited in criminal and civil proceedings”.

Notably, while the order gives the Treasury the greenlight to look at different strategies to acquire BTCs, the same does not stand for any other cryptocurrencies. President Trump has squashed any ideas of acquiring altcoins, as the announcement read,

“The government will not acquire additional assets for the Stockpile beyond those obtained through forfeiture proceedings. The purpose of the Stockpile is responsible stewardship of the government’s digital assets under the Treasury Department.”

Source: X

Bitcoin and altcoins bleed as a result

The news of the US government not spending a dime on adding any cryptocurrencies seems to have instilled a bearish sentiment in the market.

According to CoinMarketCap, Bitcoin’s 1-hour chart has seen its value drop by over 4%, ever since the announcement was made. At press time, the coin was trading at $86.185 with a market cap of $1.7 trillion. The 24-hour chart paints a similar picture as the 1-hour chart, with the 7-day chart not showing a massive impact.

Source: Trading View

Meanwhile, XRP and Cardano (ADA) have seen a decrease of 6.20% and 6.57% in the past hour respectively. Despite being painted in red in the hourly and day chart, the coins are still holding green candles in the 7-day. Whether they will continue to hold the position despite the latest update remains unclear as of now.