U.S. President Donald Trump signed an executive order Thursday to establish a strategic bitcoin (BTC) reserve that includes BTC seized by the U.S. government through law enforcement actions.
White House crypto and AI czar David Sacks said on X that the stockpile will also include other coins forfeited in criminal or civil proceedings while stressing that no taxpayer money will spent on acquiring BTC or other coins.
According to Arkham Intelligence, the U.S. government currently holds 198,000 bitcoins worth about $17.3 billion. Treating the same as reserve essentially takes out over $17 billion in selling pressure from the market.
Still, bitcoin extended losses, hitting lows near $84,700, reflecting investor disappointment over the lack of new BTC purchases for the U.S. government. Prices, however, have recovered to $87,600 at press time in hopes that Trump will announce a favorable crypto tax policy at Friday’s White House crypto summit.
Here is what market pundits had to say about the strategic reserve.
Valentin Fournier, analyst, BRN
“The Executive Order has disappointed some investors, as it explicitly states that the government will not acquire additional assets beyond those obtained through forfeitures. This lack of a clear acquisition plan has created confusion, weighing on market sentiment and leading to a 4% daily decline in Bitcoin, Ethereum, and Solana.”
“Commerce Secretary Howard Lutnick has been authorized to develop a budget-neutral strategy for acquiring additional Bitcoin. Given Lutnick’s strong ties to Bitcoin through his involvement with MicroStrategy, this could signal a hidden accumulation strategy by the U.S. government, potentially igniting a parabolic rally.”
Dick Lo, CEO, TDX Strategies
“Initial disappointment as the market had built up high expectations leading up to the announcement. However, the news is unambiguous positive: It would have been unrealistic to expect new buying without a plan on how it would be funded; An important distinction has been made between Bitcoin and the rest of crypto, i.e. not a single dollar will be spent buying altcoins.”
“Potential further positive announcements to come from the Crypto Summit: more favorable tax treatment towards crypto.”
Andrew O’Neill, digital assets managing director, S&P Global Ratings
“The significance of this executive order is mainly symbolic, as it marks the first time bitcoin is formally recognized as a reserve asset of the United States government. Currently, the reserve will only include bitcoin already owned by the U.S. government, specifically BTC forfeited through criminal or civil procedures. The order commits to holding this BTC as a reserve asset without selling it.
“However, the order does contemplate the possibility of acquiring additional bitcoin for the reserve, provided it can be done in a budget-neutral manner.There is no indication yet of how much, if any, would be acquired nor a timeline. The order also clearly distinguishes between bitcoin and other digital assets, which will not be included in the reserve but rather, included in a separate “stockpile.”
Jeff Anderson, head of asia, STS Digital
“Market is re-pricing tail risk now that the U.S. won’t be actively buying BTC. The BVIV [the 30-day implied volatility index] is down 6 vol points this morning.”
Mena Theodorou, co-founder, Coinstash
“Trump’s signing of an Executive Order for a Strategic Crypto Reserve marks a significant shift in the US government’s approach to digital assets. It establishes a strategic reserve for digital assets like Bitcoin, recognising its value as a hedge against inflation while also creating a digital asset stockpile for other cryptocurrencies like XRP, ADA, ETH, and SOL.”
“However, investors shouldn’t get ahead of themselves just yet. This executive order will not see the immediate purchase of new assets, instead, it will primarily manage assets seized as proceeds of crime. With an audit requirement for transparency, this approach addresses past concerns about how confiscated crypto was handled.”
“This initiative highlights a long-term commitment to digital assets, potentially boosting institutional adoption without the government needing to purchase additional holdings for this stockpile. As markets react to this announcement, it could lead to increased volatility in the short term. In the 60 minutes following the announcement, over USD$225 million was liquidated from crypto markets.”
Sean Farrell, head of digital asset strategy, Fundstrat
“They do away with the silly idea of using taxpayer money to acquire BTC. I love corn but we shouldn’t be engaging in such actions while running a huge deficit. The second order effects of this are more important than 200k of supply being taken off the market. We likely see more energy at the state level (esp in states that run surpluses) and see other nation states move toward adoption to front run any future potential bid. [It] Further legitimizes the asset for institutional investors that are perhaps still on the fence.”
Jeff Park, head of alpha strategies, Bitwise Asset Management
“There is nothing strategic about an EO strategic reserve Thanks for playing, next.”
Danny Chong, co-founder, Tranchess
“While some argue that disclosing the purchase limits could curb market momentum, the real significance goes beyond short-term price action. The U.S. government’s Bitcoin holdings set a powerful precedent—not just for sovereign entities but also for corporations, financial institutions, and institutional investors.”
“Until now, Bitcoin as a national reserve asset was primarily associated with El Salvador, a pioneering yet relatively small player on the global stage. The U.S. stepping into this space opens the door for other nations to follow suit. If more governments integrate cryptocurrencies into their reserves, the global demand for digital assets could increase exponentially and fundamentally shape how the world interacts with the asset class.”
Ryan Chow, CEO, Solv Protocol
“Bitcoin becoming the strategic reserve confirms Bitcoin’s status as an asset class, which will drive other governments, financial institutions and corporations to develop financial services for Bitcoin. As reserves expand, infrastructure for Bitcoin financial services will need to follow, including wallet solutions, on-chain settlement frameworks, and stronger rails between Bitcoin and fiat systems. The reserve marks a shift in Bitcoin’s role within the global financial system, from being a speculative asset, to becoming acknowledged as a legitimate macroeconomic reserve tool.”
This is a running list of comments from crypto market experts and will be updated regularly.
