Trump creates the world's largest strategic Bitcoin reserve - market reacts disappointedly

Trump creates the world's largest strategic Bitcoin reserve - market reacts disappointedly

Donald Trump's Executive Order: Creating a Strategic Bitcoin Reserve

Introducing the Bitcoin Strategic Reserve

After intense discussions, Donald Trump took a significant step and signed an executive order to create a strategic Bitcoin reserve. This decision took place on Thursday and is intended to lay the foundation for the national Bitcoin stockpile. The reserve will include not only Bitcoin but also other digital assets acquired through confiscation and forfeiture.

The details of the Executive Order

Under the new executive order, agencies such as the Treasury Department have been tasked with fully accounting for all Bitcoins obtained through seizures and forfeitures and transferring them to the newly created reserve. As of this writing, a public wallet linked to the US holds 198,109 BTC, which is worth approximately $17.51 ​​billion.

The order also specifies that the US will not sell the Bitcoins in the reserve. Instead, they are empowered to explore cost-effective ways to expand their holdings without burdening U.S. taxpayers.

Strategic positioning and market position

The American government has set itself the goal of positioning Bitcoin as “digital gold” due to its limited properties. This initiative could bring strategic advantages for the USA. Michael Saylor, CEO of Strategy, confirmed that the United States now has the largest strategic Bitcoin reserve in the world.

However, an analysis by market research firm Lookonchain shows that the US lost a total of $16.14 billion due to early sales of its Bitcoin holdings. In the past, the US public wallet sold 222,684 BTC, realizing a total of $3.38 billion. However, given the current market values ​​of these Bitcoins, they were found to be worth $19.42 billion.

Market reactions

Despite the positive news surrounding the strategic reserve, the cryptocurrency market responded with a notable correction. Bitcoin fell to an intraday low of $84,718 before recovering to $88,158. Other digital assets such as Ethereum and XRP also registered declines of 6% and 1%, respectively, within 24 hours.

Market observers attribute these unexpected reactions to a lack of clarity regarding future Bitcoin purchases for the reserve. The executive order did not reveal information about how many BTC the US will add to its reserve and noted that no additional assets will be procured for the crypto stockpile.

In conclusion, the creation of the Bitcoin strategic reserve by the US can be seen both as a significant step in treasury policy and as a reflection of the dynamic market reactions that are often reflected in complex developments.