Trump Administration Announces Strategic Bitcoin Reserve, Will Buy Bitcoin Seized from Criminals

White House AI and Crypto Czar David Sacks has just announced a Strategic Bitcoin Reserve and a national stockpile of crypto for the US.

White House AI and Crypto Czar David Sacks has just announced a Strategic Bitcoin Reserve and a national stockpile of crypto for the US.

In a tweet he said Trump signed an Executive Order which will build a reserve with Bitcoin, “forfeited as part of criminal or civil asset forfeiture proceedings”, adding there won’t be any cost to the taxpayer.

They won’t sell any more BTC and will also try to find “budget-neutral” ways to buy BTC, as well as establish a crypto asset stockpile, again from criminal proceedings.

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However, adding more Bitcoin to this reserve would likely require Congressional approval for Trump and Sacks’ proposal.

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…

Bitcoin Reserve Could Push BTC Price 20X

But how much money exactly could be flowing into the market if this progresses further?

Sygnum Bank’s head of research, Katalin Tischhauser, told Cointelegraph that up to US$460 billion (AU$726 billion) could flow into Bitcoin, boosting the market cap by 25%.

Tischhauser believes this could push the price of BTC up by 20X, due to Bitcoin’s limited available supply.

These projections do not even consider potential actions by other countries and US states. It would also likely trigger “another wave of allocations from institutional investors as well”, Tischhauser added.

Japan has already said it watches closely what the US is doing in that regard, which hints at a strong possibility they’ll set off a domino effect and cause FOMO on a larger scale.

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There are also several US states already discussing crypto and Bitcoin reserves on a state level. And, even though some have rejected the idea, for now, Texas is moving ahead with plans of its own.

1 Million Bitcoin to Enter Reserve, Says Saylor

Executive chairman of Strategy (formerly MicroStrategy) (NASDAQ:MICRO) (MICRO), Michael Saylor, also believes that there are plans by the US to buy 1 million Bitcoin. Speaking to Liz Claman on Fox Business’ The Claman Countdown, Saylor said the US Government will be buying BTC over a four-year period to build its reserve.

He added that the plan had been mapped out via Senator Cynthia Lummis’ crypto reserve bill.

Although it is unclear exactly how such a large quantity of Bitcoin would be paid for, Saylor added that “the most responsible thing would be to go slow and steady and deliberate with clear telegraphing and transparency”.

Saylor will be attending Donald Trump’s White House Crypto Summit this Friday, an event much anticipated by the crypto community.

Related: Donald Trump Signs Executive Order Confirming Strategic Bitcoin Reserve

Other than Saylor, some of the most prominent attendees include Ripple’s Brad Garlinghouse, co-founder of Chainlink Sergey Nazarov and Cameron and Tyler Winklevoss, the co-founders of Gemini, as a Forbes list shows.