Trump Signs Executive Order Establishing Strategic Bitcoin Reserve
White House Confirms Reserve Will Include Seized Crypto Assets
U.S. President Donald Trump has officially signed an executive order to establish a strategic bitcoin (BTC) reserve, comprising BTC confiscated by the U.S. government through law enforcement actions.
David Sacks, the White House’s crypto and AI czar, clarified on X that the reserve will also include other cryptocurrencies forfeited in criminal and civil proceedings. He emphasized that no taxpayer funds will be used to purchase additional BTC or any other digital assets.
According to Arkham Intelligence, the U.S. government currently possesses approximately 198,000 BTC, valued at roughly $17.3 billion. By designating these holdings as a strategic reserve, over $17 billion in potential market supply is effectively removed, alleviating some selling pressure.
However, bitcoin initially reacted negatively, dropping to a low of $84,700 as investors expressed disappointment over the absence of new BTC acquisitions by the U.S. government. At press time, BTC has recovered to $87,600, with traders eyeing Friday’s White House crypto summit for potential tax policy updates that could provide further clarity and support for the market.
Market Reactions to the Strategic Reserve Announcement
Valentin Fournier, Analyst, BRN
“The executive order has left some investors underwhelmed as it explicitly states that the government will not purchase additional assets beyond those obtained through forfeitures. The absence of a clear acquisition plan has led to uncertainty, dampening sentiment and contributing to a 4% daily decline in Bitcoin, Ethereum, and Solana prices.
That said, Commerce Secretary Howard Lutnick has been authorized to explore a budget-neutral strategy for acquiring more Bitcoin. Given Lutnick’s close ties to Bitcoin through his association with MicroStrategy, this could hint at a longer-term accumulation strategy that might trigger a major rally.”
Dick Lo, CEO, TDX Strategies
“The initial market reaction was one of disappointment, as expectations had been built up leading into the announcement. However, the decision is ultimately a net positive: it was unrealistic to expect the government to buy BTC without a funding strategy in place. Additionally, the executive order draws a clear line between Bitcoin and other cryptocurrencies, making it clear that taxpayer dollars will not be spent on altcoins.”
“The upcoming White House crypto summit could bring further positive news, particularly regarding tax policies that favor crypto investment.”
Andrew O’Neill, Digital Assets Managing Director, S&P Global Ratings
“While largely symbolic, this executive order is significant as it marks the first formal recognition of Bitcoin as a reserve asset by the U.S. government. Currently, the reserve consists only of BTC that has been forfeited through legal proceedings, with a commitment to holding these assets rather than liquidating them.
However, the executive order does leave the door open for future acquisitions—if they can be executed in a budget-neutral manner. No specific targets or timelines have been set. Additionally, the order distinguishes Bitcoin from other digital assets, which will be categorized separately in a ‘stockpile’ rather than included in the reserve.”
Jeff Anderson, Head of Asia, STS Digital
“The market is now re-pricing tail risk given that the U.S. won’t be actively buying BTC. The BVIV (30-day implied volatility index) has dropped 6 volatility points this morning, reflecting a recalibration of expectations.”
Mena Theodorou, Co-founder, Coinstash
“Trump’s executive order marks a major policy shift in how the U.S. government approaches digital assets. The creation of a strategic crypto reserve acknowledges Bitcoin’s value as an inflation hedge while also managing seized cryptocurrencies like XRP, ADA, ETH, and SOL.
That said, investors should temper their expectations. This order does not signal immediate asset purchases but rather focuses on managing previously confiscated crypto. With a mandated audit for transparency, the government is addressing past concerns about how seized digital assets are handled.
This initiative signals a long-term commitment to crypto, which could spur institutional adoption. However, in the short term, market volatility is likely, as evidenced by over $225 million in crypto liquidations within 60 minutes of the announcement.”
Sean Farrell, Head of Digital Asset Strategy, Fundstrat
“The government wisely avoids the problematic idea of using taxpayer money to buy BTC. While I’m a strong believer in Bitcoin, it’s hard to justify such a move when the country is running a significant deficit.
The real impact here lies in second-order effects: we’re likely to see increased activity at the state level, especially in surplus-running states, and other nations may take steps toward Bitcoin adoption to get ahead of potential future U.S. accumulation. Institutional investors who were hesitant may now view Bitcoin as an even more legitimate reserve asset.”
Jeff Park, Head of Alpha Strategies, Bitwise Asset Management
“There’s nothing strategic about a ‘strategic reserve’ created by an executive order. Thanks for playing, next.”
Danny Chong, Co-founder, Tranchess
“While some may argue that disclosing the limits of government BTC purchases could slow market momentum, the broader implications of this move extend beyond short-term price action. By officially incorporating Bitcoin into its reserves, the U.S. government sets a precedent that could influence corporations, financial institutions, and sovereign entities alike.
Previously, the idea of a nation-state holding Bitcoin as a reserve asset was associated primarily with El Salvador—a relatively small player in global finance. With the U.S. now entering this space, it opens the door for other countries to follow. If more governments integrate crypto into their reserves, global demand could rise dramatically, reshaping the digital asset landscape.”
Ryan Chow, CEO, Solv Protocol
“Bitcoin’s inclusion in the strategic reserve solidifies its position as a recognized asset class. This will drive further development of Bitcoin-related financial services, including enhanced wallet solutions, on-chain settlement frameworks, and improved fiat-to-Bitcoin payment infrastructure.
This move marks a shift in Bitcoin’s role within the global financial system—from a speculative asset to a legitimate macroeconomic reserve tool.”
This list of expert reactions will be updated as new insights emerge.
