The executive order established a Bitcoin Strategic Reserve using seized assets, which has provoked mixed reactions among experts and turbulence in the crypto market.
U.S. President Donald Trump signed an executive order on Thursday, March 6, to establish a Strategic Bitcoin Reserve, marking a historic shift in U.S. digital asset policy.
The order was announced by White House crypto and AI czar David Sacks in an X post, stating that the reserve would act as a “digital Fort Knox” and would not require additional taxpayer funding.
According to the executive order, the reserve will initially be funded with Bitcoin seized through criminal and civil forfeiture cases.
Data from Arkham Intelligence estimates that the U.S. government currently holds approximately 198,000 BTC, worth around $17.3 billion.
The order also authorizes the Secretaries of Treasury and Commerce to explore budget-neutral strategies for future Bitcoin acquisitions.
Mixed reactions to the EO: from ‘insignificant’ to accelerating Bitcoin nation adoption
Industry leaders have expressed both optimism and skepticism regarding the executive order. Some see it as a landmark decision that legitimizes Bitcoin as a reserve asset, while others argue it is largely symbolic.
Jacob King, founder of WhaleWire, dismissed the move as mere branding, stating, “They’re just slapping a fancy title on it to appease Bitcoiners.” He emphasized that the reserve does not involve any new Bitcoin purchases, calling it “one of the most insignificant ‘events’ in crypto history.”
Peter Schiff, a well-known Bitcoin critic, was also unimpressed, posting on X that Trump signed a “bogus” executive order “under pressure from his donors and conflicted cabinet members.”
Jeff Park, Head of Alpha Strategies at Bitwise Asset Management, was more critical, dismissing the initiative by saying, “There is nothing strategic about an executive order strategic reserve.”
Despite skepticism, some industry figures see the order as a meaningful step forward.
Ryan Rasmussen, Head of Research at Bitwise, highlighted its broader implications: “A U.S. Strategic Bitcoin Reserve means other countries will buy Bitcoin, wealth managers have no excuse, and the fear of the U.S. selling is gone.”
Matt Hougan, CIO at Bitwise, echoed this sentiment, stating that the reserve “dramatically reduces the likelihood the U.S. government will someday ban Bitcoin” while accelerating the pace at which other nations consider establishing their own reserves.
Market plunges ahead of White House Crypto Summit outcome
Bitcoin and other major cryptocurrencies experienced sharp declines following the announcement. Bitcoin, which was trading above $90,000 prior to the executive order, fell to below $85,000 in under an hour, according to CoinMarketCap.
Ethereum, Solana, and other altcoins also suffered losses, reflecting investor disappointment over the lack of new BTC purchases by the U.S. government.
Mena Theodorou, co-founder of crypto investment platform Coinstash, said, “The market had priced in potential large-scale Bitcoin acquisitions, and this announcement fell short of those expectations,” as CoinDesk reported.
The market downturn triggered by Trump’s executive order comes just hours before the first White House Crypto Summit, where top industry leaders are expected to discuss digital asset policies.
Market participants will be watching closely for potential regulatory updates, including possible tax incentives for crypto investors.
The outcome of the summit could influence Bitcoin’s price action over the weekend, with investors anticipating further announcements that might counterbalance the market’s initial negative reaction.
