US President Donald Trump signed an executive order on March 7 and set up a strategic Bitcoin Reserve (SBR) and a “digital asset storage.” Both will initially be exploited with Cryptocurrency seized through the government’s criminal and civilian confiscation procedures, with future acquisitions possible under budget -neutral conditions.
Moment after the news announced the BTC’s price from about $ 91,200 to about $ 84,667 – a drop of more than 7% – in what many observers call a classic “sell the news”. Some market players seem dissatisfied that the executive scheme is not immediately more aggressive when it comes to buying bitcoin. Nevertheless, important industry votes claim that the market may have incorrectly read the long -term consequences.
Is the strategic Bitcoin reserve a disappointment?
According to David Sacks, the White House AI and Crypto Czar, as announced Development via X: “Just minutes ago, President Trump signed an executive order to establish an SBR. The reserve will be used with Bitcoin owned by the federal government, which was forfeited as part of the criminal or civilian procedures. This means that it will not cost the taxpayers a penny. “
Sacks added that the United States owns about 200,000 Bitcoin. But he also made it clear that “it has never been a complete audit” and that “EO leads a complete account of the federal government’s digital asset holdings.” Noteworthy, US President Trump is not to sell “any bitcoin deposited in the reserve. It will be held as a store with value. The reserve is like a digital fort Knox for Cryptocurrency that is often called ‘Digital gold. “”
In addition, the Secretary of Tax Chamber and Trade-of well-known Bitcoin Bull was led Howard Lutnick—I has been authorized to develop budget -neutral strategies to acquire more bitcoin. Although specific methods remain unclear, the move can lead to additional US governmentBTC accumulation. “The secretaries of the Ministry of Finance and the trade are authorized to develop budget -neutral strategies to acquire further Bitcoin, provided that these strategies have no incremental costs for US taxpayers,” Sacks writes via X.
Separately from SBR’s executive order draws up a US digital asset storage, which will include seized digital assets other than BTC. According to Sacks, this warehouse will not be actively expanded beyond what coins the government receives through loss. The purpose, he explained, is to exercise “responsible management of the government’s digital assets under the Treasury Department.”
In the midst of price volatility, industry leaders struck an optimistic tone. David Bailey, CEO of BTC Inc, wrote on X: “The global answer to tonight’s news will be immediately. This is the shot that is heard around the world. Could not be more proud of this moment or more excited for what comes next. See you on the moon. “
Nic Carter, General Partner on Castle Island Ventures abandoned Via X: “Announcement could not have gone better: Campaign promise is held. Bitcoin Reserve clearly differed from Altcoin Stockpile. Bitcoin gets official USG approval from USG, no other coin does. No taxpayer is spent to get coins (so no counter -reaction). Future acquisitions of coins are probably left to the congress, as it should be. “
BitWise Chief Investment Officer (CIO) Matt Hougan Listed Four reasons why the executive order has great hausse effects on bitcoin:
1) Dramatically reduces the likelihood that the US government will “ban” Bitcoin some day;
2) dramatically increases the probability that other nations will establish strategic bitcoin reserves;
3) speeds up the speed at which other nations will consider establishing strategic bitcoin reserves, as it creates a short-term window for nations for front potential additional purchases of the United States;
4) Makes it much more difficult for institutions-from national account advisors to Kvasi-state agencies such as IMF-to position bitcoin that in any way dangerous or inappropriate to hold.
Known crypto analyst macroscope (@macroscope17), commented: “The market has been unsure that there would even be a strategic reserve. Now there will not only be one, actually acquiring more BTC looks likely. The immediate sale of the News reaction aside, in the longer term, this is hugely hungry compared to the market’s expectations until this point. “
The analyst expects this news to ignite a “National State’s weapons affair”. He also expects to see more 13F applications of superb wealth funds waiting for this announcement. “Critical to look at this in the coming weeks and months,” he concluded.
At press time, BTC traded to $ 88.104.
Featured image created with Dall.e, chart from tradingview.com
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