Trump’s Strategic Bitcoin Reserve Eliminates $17B in BTC Selling—Here’s What Analysts Say

U.S. President Donald Trump has signed an executive order establishing a strategic reserve for Bitcoin (BTC), marking a pivotal moment in the U.S. government’s relationship with digital assets. The reserve will include Bitcoin seized through law enforcement actions, with the White House’s crypto and AI czar, David Sacks, confirming on X that the stockpile will also encompass other cryptocurrencies forfeited in criminal or civil proceedings. He emphasized that no taxpayer money will be used to acquire BTC or other assets.

According to Arkham Intelligence, the U.S. government currently holds approximately 198,000 BTC, valued at around $17.3 billion. This move effectively removes over $17 billion in potential selling pressure from the market, raising questions about the long-term impact on Bitcoin’s price.

Despite the news, Bitcoin extended its losses, dropping to $84,700, as investors expressed disappointment over the lack of new BTC acquisitions by the U.S. government. However, prices rebounded to $87,600, buoyed by hopes that Trump may announce favorable crypto tax policies at Friday’s White House crypto summit.

Here’s how some market experts are reacting to the announcement of the strategic reserve:

Valentin Fournier, Analyst at BRN:
“The Executive Order has left some investors disillusioned, as it clearly states that no new Bitcoin will be acquired outside of what has been forfeited. This has introduced uncertainty, leading to a 4% drop in Bitcoin, Ethereum, and Solana. However, the appointment of Commerce Secretary Howard Lutnick, known for his involvement with MicroStrategy, could signal a covert accumulation strategy for Bitcoin, potentially sparking a rally.”

Dick Lo, CEO of TDX Strategies:
“While initial reactions were negative due to high market expectations, this move is ultimately positive. It would have been unrealistic to expect the government to purchase Bitcoin without a clear funding plan. The executive order also differentiates between Bitcoin and altcoins, affirming that no taxpayer money will go into altcoins. The potential for further announcements from the Crypto Summit could bring more favorable tax policies for the industry.”

Andrew O’Neill, Managing Director at S&P Global Ratings:
“This executive order is primarily symbolic, officially recognizing Bitcoin as a reserve asset of the U.S. government. While the reserve will only contain Bitcoin already in the government’s possession, it lays the groundwork for future acquisitions, provided they are budget-neutral. The order also makes a clear distinction between Bitcoin and other digital assets, which will be stored in a separate stockpile.”

Jeff Anderson, Head of Asia at STS Digital:
“The market is re-pricing risks now that the U.S. government won’t be actively purchasing BTC. This has led to a 6-point drop in the 30-day implied volatility index.”

Mena Theodorou, Co-founder of Coinstash:
“Trump’s executive order signals a shift in the U.S. government’s approach to digital assets. While it primarily addresses assets seized in criminal proceedings, it could pave the way for institutional adoption without requiring the government to buy new holdings. However, the short-term impact has been significant, with $225 million in liquidations following the announcement.”

Sean Farrell, Head of Digital Asset Strategy at Fundstrat:
“The executive order removes any concerns about using taxpayer money for Bitcoin purchases, a move I fully support. The implications go beyond the 200,000 BTC already held by the government—this could inspire other states and nations to adopt similar strategies and give Bitcoin more legitimacy among institutional investors.”

Jeff Park, Head of Alpha Strategies at Bitwise Asset Management:
“Frankly, there’s nothing particularly ‘strategic’ about this reserve. Let’s move on.”

Danny Chong, Co-founder of Tranchess:
“While some are disappointed by the lack of new BTC purchases, the broader significance lies in the U.S. government’s recognition of Bitcoin as a reserve asset. This opens the door for other governments to follow suit, potentially driving global demand for digital assets.”

Ryan Chow, CEO of Solv Protocol:
“The creation of a Bitcoin reserve confirms its status as a legitimate asset class. This development will likely prompt governments and institutions to create financial services for Bitcoin, which could revolutionize how Bitcoin is integrated into the global financial system.”

This article will be updated regularly with additional insights from crypto market experts.

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