The United States establishes a strategic reserve of Bitcoin, deVere’s Green calls it a “critical moment”

Bitcoin prices fell after U.S. President Donald Trump signed an executive order to establish the U.S. Strategic Reserve of Bitcoin. In early morning trading in London, the value of Bitcoin fell as much as 6.5% before recovering most of the losses to stabilize around $82,050. Other major cryptocurrencies, including Ethereum and XRP, also experienced volatility but rebounded from initial declines.

Nigel Green, CEO of global financial advisory giant deVere Group, interpreted the development as a critical moment for digital assets rather than a cause for concern. Green said the market's reaction showed a lack of foresight, which may be corrected as investors understand the wider impact of the move.

According to Green, the executive order increases the likelihood that Bitcoin will become a geopolitically important asset in the future. He said the vision of Bitcoin's development from a speculative asset to a pillar of sovereign financial reserves is now actively being realized.

The establishment of a strategic reserve in the United States further validates Bitcoin's position in global finance. While the government's failure to purchase additional Bitcoin may disappoint some, the more important development is the formal inclusion of the asset in the reserve system of the world's largest economy.

Green does not expect the United States to be the last country to take this step. Other countries, especially those seeking to hedge against the dominance of the U.S. dollar, may now be incentivized to build their own Bitcoin reserves. Countries with a history of accumulating alternative assets such as gold may see this as a signal to further diversify into digital assets. This move is likely to attract the attention of sovereign wealth funds, central banks, and institutional investors.

Green also stressed that short-term price movements rarely reflect long-term fundamentals. He compared this to past events when investors initially reacted to major policy changes with panic or skepticism, but later recognized their significance.

The executive order also provides regulatory clarity. Green said that governments holding Bitcoin reserves will have a vested interest in ensuring that the asset is viable and not heavily restricted. This may accelerate the establishment of a clearer and more favorable regulatory framework.

Green concluded that there has been a history of market overreaction to Bitcoin. He believes that once the dust settles, the announcement of the strategic reserve is likely to be seen as a moment in time when Bitcoin's role in the financial system is recognized.