Breaking News: President Trump Signs Executive Order to Create Strategic Bitcoin (BTC) Reserve
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U.S. President Donald Trump has officially taken the first step toward establishing a strategic cryptocurrency reserve. Earlier today, David Sacks, the White House-appointed “crypto czar,” announced the news on X. He stated that President Trump has signed an executive order to establish a strategic Bitcoin reserve.
It noted, “Just minutes ago, President Trump signed an executive order to establish a strategic Bitcoin reserve. The reserve will be capitalized with Bitcoin owned by the federal government as funds seized as part of criminal or civil asset forfeiture proceedings. This means it will not cost taxpayers a penny.”
US Not As Bullish on Bitcoin As El Salvador
The announcement was not bullish, stating that the U.S. will not purchase Bitcoin (BTC) or any other cryptocurrency. However, the reserve will include cryptocurrencies seized or confiscated in civil or criminal proceedings.
The move is in direct contradiction to most market sentiment, with many expecting the U.S. to follow El Salvador’s lead. The country has been actively buying Bitcoin over the past few years, with its strategic reserve currently holding over 6,102 BTC.
While the order does not give the U.S. a green light to buy Bitcoin, it does approve the Treasury Department to develop a “budget-neutral strategy to purchase additional Bitcoin.” These strategies will not “increase costs for American taxpayers.” Crypto Czar stated that “premature sales of Bitcoin have cost American taxpayers more than $17 billion. Now the federal government will develop a strategy to maximize the value of its holdings.”
Bitcoin and altcoins are not equal!
In addition, Sachs also announced the U.S. Digital Asset Reserve, which will include altcoins. The president had previously announced that the reserve would include cryptocurrencies such as XRP, Cardano (ADA), Ethereum (ETH), and Solana (SOL). This will also be composed of cryptocurrencies “forfeited in criminal and civil proceedings.”
It is worth noting that while the order allows the Treasury to explore different strategies for acquiring BTC, this does not apply to any other cryptocurrencies. President Trump has already dispelled any idea of acquiring altcoins, as stated in the announcement, “The government will not acquire other assets for the reserve, other than those acquired through forfeiture proceedings. The purpose of the reserve is to be responsible for the management of the government’s digital assets under the leadership of the Treasury Department.”
Bitcoin and altcoins plummeted as a result
The news that the U.S. government added any cryptocurrencies without spending a penny seems to have implanted bearish sentiment in the market.
According to CoinMarketCap, Bitcoin’s 1-hour chart shows that its value has fallen by more than 4% since the announcement. At press time, the coin is trading at $86,185 with a market cap of $1.7 trillion. The 24-hour chart presents a similar picture to the 1-hour chart, while the 7-day chart does not show a huge impact.
Meanwhile, XRP and Cardano (ADA) have fallen by 6.20% and 6.57% respectively in the past hour. Despite being painted red on the hourly and daily charts, these coins are still holding green candles on the 7-day chart. Whether they will continue to hold this position despite the latest update remains unclear.
